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FOR BUSINESS LEADERS · OAKVILLEOakville

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A franchise agreement can establish the right to use a brand without establishing the corporate relationship L-1 requires. Focus first on who owns and controls the foreign and U.S. employers, then assess the transferee’s management responsibilities within the actual business. A transferee must have completed one continuous year of qualifying employment with the related foreign organization during the preceding three years. L-1A time is normally limited to seven years, so an expansion forecast should identify earlier L time rather than assume a fresh clock for a new franchise venture.

Talk about L-1A
PurposeExecutive or managerial transfer
Company linkQualifying related businesses
New officeA distinct evidence requirement

IN THIS GUIDE · Franchise branding versus a qualifying company relationship

Start with the L-1A eligibility and application overview

01

Identify the employers behind the brand

List the legal entity employing the beneficiary abroad and the proposed U.S. employer. Distinguish those companies from the franchisor and any operating trade names. A shared logo or franchise system does not identify ownership, and a transfer between two franchisees cannot be assumed qualifying merely because both use the same brand. Create a diagram that names every owner, voting right, and entity rather than drawing the brand at the center. The first decision is whether the actual employers share the required relationship; only then does the franchise background become useful context.

02

Separate licensing from ownership

A franchise agreement ordinarily describes commercial and brand rights. The L relationship must be supported through the applicable ownership and control framework. Review share, membership and governance records across the actual employers instead of relying on the franchisor’s support letter as the main proof of affiliation. Match corporate records to the dates on the proposed filing. Share registers, board resolutions, and operating agreements can settle who controlled each company at the relevant time, whereas a marketing brochure cannot.

03

Evaluate the working owner’s duties

Operating a franchise may involve direct customer service, scheduling and production as well as leadership. Explain what the beneficiary will actually do and who handles the daily work. Brand standards and a manager title do not establish primarily executive or managerial duties or the necessary foreign employment history. Test the proposed job against a calendar, staffing plan, and delegation chart. The critical distinction is between directing a function through qualified personnel and personally performing the storefront’s essential day-to-day work.

04

Test expansion assumptions independently

If opening a new U.S. operation, address premises, financial capacity and a first-year plan supporting qualifying leadership. A franchisor’s business model can provide context, but the petitioner must support its own facts. Preserve the distinction between projected performance and the actual resources committed to this operation. Hypothetical example: a business that refurbishes laboratory centrifuges licenses a familiar service mark for its first U.S. workshop. Its foreign parent owns the new entity, but the proposed transferee is also scheduled to repair units each afternoon. The company must decide whether hiring and supervision plans genuinely leave a primarily managerial assignment, rather than relying on the franchise label.

05

Test the affiliation claim against the operating records

The claim that two businesses are related is verified from the operating records rather than from the brand they share. Ask for the ownership and control documents of each employer, then ask a second question the documents alone will not answer: who actually decides what in each company. A franchisor exercising brand oversight can look, from outside, like a group exercising corporate control, and the difference shows in who appoints management, who approves budgets and who bears the loss. Ask also whether the franchise agreement restricts decisions the transferee is said to make, since a role described as managerial can be materially constrained by terms nobody thought to read as an immigration document.

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Guides for your next decision.

L-1A · OAKVILLE

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