Friday, March 14, 2014

First Sbarro threw in the towel, and now Quiznos got toasted. This is WHY I tell EB-5 visa investors to avoid investing in risky franchises such as Twistee Treats, Voodoo BBQ, Marcos Pizza, etc.

A few days ago, I wrote about the dangers of investing in risky franchises, and today I saw yet another example of a risky franchise going bankrupt. That is right, Quiznos got toasted.
What can EB-5 visa investors learn from these examples?

The first lesson is, do NOT trust someone who doesn't ow you a fiduciary duty. A licensed Business Broker (who also holds a RE Broker License) or an Attorney or CPA representing only the EB-5 visa investor can be trusted as their only loyalty lies with their client. A sleazy marketer such as Chaim Katzap or Kevin Jeffers or Joe Sloboda and Fred Burgess as well as other similar individuals who've illegally marketed and sold regional center securities are NOT to be trusted at all, as their track record shows they've caused enough EB-5 visa investors to lose time and money.

The second lesson is, do NOT trust someone who doesn't have real experience in discerning fact from fiction. It is quite common for EB-5 visa investors to trustingly believe so-called due diligence experts such as Michael Gibson or Wassem Amin, but the fact is, they either don't seem to know HOW to do due diligence, or simply choose to turn a blind eye towards glaring indicators of fraud.

Franchises can often be a great way to get EB-5 visas, but EB-5 visa investors need to watch out for fraud. I've seen Voodoo BBQ franchises offered by Joe Sloboda, where they didn't disclose their conflict of interest to EB-5 visa investors, and saw a similar situation with David Tashroudian and Carl's Jr. franchises too.

Papa John's or Dominos franchise may be great for EB-5 visa investors, while Marco's Pizza may be unsuitable. Similarly, 5 Guys may be suitable while Voodoo BBQ may be unsuitable. EB-5 visa investors should remember that they should seek objective advice from those who owe them fiduciary duties, and not from those who may have a conflict of interest, as unscrupulous franchise brokers and their affiliates try to solicit EB-5 visa seekers to invest in a business with a risky business model, in order to earn commissions from the franchisor at the expense of the EB-5 visa seeker.

An easy way to find out if a franchise is a good option or not, is to ask a lender bank if they will finance that franchise. If the lender says no, then the EB-5 visa seeker should avoid the franchise. Another easy way to find out is to ask the franchisor to provide audited financial statements from 10 of the closest franchisees to see what was the annual NOI per store, and in case the stores are making losses or very little profit, the EB-5 visa seekers should avoid the franchise. EB-5 visa seekers should also ask Franchise brokers and promoters to disclose in a notarised affidavit the commissions they will receive from all sources, in order to make an informed decision on whether to invest or not in a particular franchise. Finally, EB-5 visa seekers should seek the help of reputed and experienced Licensed Business Brokers who offer a written guarantee of freedom from conflict of interest to their clients, to help EB-5 visa seekers make an informed decision.

Our competitors usually don't offer written guarantees of full disclosure and freedom from conflict of interest, while we do so confidently and proudly. Our competitors don't have over 10 years of Business Brokerage and Advisory experience helping investors buy / start businesses to qualify for the EB-5 visa, while since 2004, we've helped 65 investors get their EB-5 visa.

We offer a full fee refund guarantee in case our client's EB-5 visa petition is denied due to our fault. We also offer a written guarantee of full disclosure and freedom from conflict of interest, and none of our clients has suffered operating losses or capital losses. For more information, please call or visit our website

Unlike Joe Sloboda and Fred Burgess, whoat least till last year, didn't clearly disclose their financial interest in promoting their risky Voodoo BBQ franchise, we do NOT receive a penny from any franchisor for referring clients, so our EB-5 visa investor clients know that our advice is entirely objective and free of undisclosed financial interests.

If you're an EB-5 visa investor who wishes to get their EB-5 visa in a quick, safe and usually profitable manner, please hire our team to guide you. You'll be glad you did.

Yours truly
Mohammed Shaikh, MBA, CFE, Licensed RE & Business Broker (CA & FL)
Phone: 407 535 0616

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