Franchise Investment

[ajaypratap11]

Dear Gurus,

Need your Advise.

I am on Tier 1 50k route and would like to know that does franchise fee count under investment. One of my frined bought existing business and paid 20k and his visa got rejected as per below statement.

buying the business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business you have bought. This applies regardless of whether the money is channelled through the business en route to the previous owner. For example, by means of you or your business purchasing ‘goodwill’ or other assets which were previously part of the business you have bought”

But my business was not existing i started as new and i did not buy running business.

This is the statement on policy guide:
Franchises
A26. Businesses that are set up as franchises can be accepted for the award of points. You will
either be self-employed or employed, depending on how you decide to structure the franchise
business, and should provide the appropriate evidence.

NEED YOU ADVISE AND THANK YOU IN ADVANCE.

[ajaypratap11]

Hi Friends,

i can see that here are lots of Views but one replied.

Please advice senior members .

[zimba]

If the money comes into your company and then paid as fees/expenses for something then you should be fine. However paying money to the previous owner is not allowed.

[ajaypratap11]

If the money comes into your company and then paid as fees/expenses for something then you should be fine. However paying money to the previous owner is not allowed.

Thank you very much Zimab88.

Yes i am using my company account for all esxpenses etc.

I would like to ask you one more thing. i paid franchise fee from current account on that time i don't have company account.

Many Thanks

Regard's
Ajay

[zimba]

You need to show money was invested in your company first. If you paid any fees before investing it as required by HO, it will not count I am afraid

[ajaypratap11]

You need to show money was invested in your company first. If you paid any fees before investing it as required by HO, it will not count I am afraid

Hi Zimba88,

First i transferred money from my current account to my 1st company account then i transferred back to current account and then i paid to them because on that time i did not open the bank account.

Any good solicitor suggestion in london or near by.

Thanks

[zimba]

If you are claiming no points for your first company, you cannot use the investment made in that company. You also transferred the money back to yourself which is effectively Director's Loan repayment and is not counted as investment