dismissed L-1A Case: Escape Room Business

u.s: Citizenship 
and Immigration 
Services 
MATTER OF E-R-1- INC. 
APPEAL OF VERMONT SERVICE CENTER DECISION 
Non-Precedent Decision of the 
Administrative Appeals Office 
DATE: MAR.I3,2018 
PETITION: FORM 1-129, PETITION FOR A NONIMMIGRANT WORKER 
The Petitioner, which operates a franchised "escape room" business, seeks to temporarily employ the 
Beneficiary as chief executive officer (CEO) of its new oftice 1 under the L-1 A nonimmigrant 
classification for intracompany transferees. See Immigration and Nationality Act (the Act) section 
lOI(a)(lS)(L), 8 U.S.C. § IIOI(a)(IS)(L). The L-lA classification allows a corporation or other legal 
entity (including its affiliate or subsidiary) to transfer a qualifYing foreign employee to the United States 
to work temporarily in a managerial or executive capacity. · 
The Director of the Vermont Service Center denied the petition, concluding that the Petitioner did 
not establish, as required, that it would be able to support an executive position within one year of 
approval of the petition. 
On appeal, the Petitioner submits additional evidence in support of its claim that the company has 
hired staff to perform the day-to-day operational tasks of the business. The Petitioner asserts that its 
operations are sufficiently complex to require the Beneficiary's services in an executive capacity 2 
Upon de novo review, we will dismiss the appeal. 
I. LEGAL FRAMEWORK 
To establish eligibility for the L-1 A nonimmigrant visa classification for a new office, a qualifying 
organization must have employed the beneficiary in a managerial or executive capacity for one 
conti~uous year within three years preceding the beneficiary's application for admission into the 
United States. 8 C.F.R. § 214.2(1)(3)(v)(B). In addition, the beneficiary must seek to enter the 
United States temporarily to continue rendering his or her services to the same employer or a 
subsidiary or affiliate thereof in a managerial or executive capacity. Section IOI(a)(IS)(L) of the 
Act. The petitioner must also establish that the beneficiary's prior education, training, and 
1 
The term "nc:vv office" refers to an organization which has been doing business in the United States for less than one 
year. 8 C.F.R. § 214.2(1)(1 )(ii)(F). The regulation at 8 C.F.R. § 214.2(1)(3)(v)(C) allows a "new office" operation no 
more than one year within the date of approval of the petition to support an executive or managerial position. 
2 The Petitioner did not claim that the Beneficiary would be employed in a mimagerial capacity. Therefore, our analysis 
will address only the Petitioner's claim that the Beneficiary's proposed position would be in an executive capacity. 
Mauer 'if E-R-1- Inc. 
employment qualify him or her to perform the intended services in the United States. 8 C.F.R. 
§ 214.2(1)(3). 
The petitioner must submit evidence to demonstrate that the new office will be able to support a 
managerial or executive position within one year. This evidence must establish that the petitioner 
secured sufficient physical premises to house its operation and disclose the proposed nature and 
scope of the entity, its organizational structure, its financial goals, and the size of the U.S. 
investment. See generally, 8 C.F.R. § 214.2(1)(3)(v). 
The term "executive capacity" is defined as an assignment within an organization in which the 
employee primarily directs the management of the organization or a major component or function of 
the organization; establishes the goals and policies of the organization, component, or function; 
exercises wide latitude in discretionary decision-making; and receives only general supervision or 
direction from higher-level executives, the board of directors, or stockholders of the organization. 
Section IOI(a)(44)(B) of the Act. 
If staffing levels are used as a factor in determining whether an individual is acting in a managerial 
or executive capacity, U.S. Citizenship and Immigration Services (USCIS) takes into account the 
reasonable needs of the organization, in light of the overall purpose and stage of development of the 
organization. See section IOI(a)(44)(C) of the Act. 
II. U.S. EMPLOYMENT IN AN EXECUTIVE CAPACITY 
The sole issue to be addressed is whether the Petitioner established that its new otlice would support 
the Beneficiary in an executive capacity within one year of the approval of the petition. 
In the denial decision, the Director acknowledged that the Beneficiary's proposed duties, as 
described in the record, "appear executive in nature." However, the Director found that, based on 
the nature, structure, and proposed staffing of the new business, the Petitioner did not show how it 
would "reach a level of complexity that would realistically support a qualifying executive position." 
The Director determined that there was insuflicient evidence to show that the Beneficiary would be 
relieved from involvement in the day-to-day operations of the escape room business. 
On appeal, the Petitioner provides evidence that it has hired three staff, maintains that these 
employees perform the company's day-to-day operational tasks, and asserts that it requires the 
Beneficiary to perform executive duties that could not reasonably be assigned to lower-level 
workers. The Petitioner emphasizes that the Director erred by focusing on the number of employees 
to be hired, and did not consider the complexity of the Petitioner's business or its reasonable need 
for an executive employee to guide the company's growth. 
In the case of a new office petition, beyond the description of a beneficiary's proposed job duties, we 
review the petitioner's business and hiring plans and evidence that the business will grow 
sufficiently to support a beneficiary in the intended managerial or executive capacity. A petitioner 
has the burden to establish that it would realistically develop to the point where it would require the 
2 
.
Matter ofE-R-1- Inc. 
beneficiary to pcrfonn duties that are primarily managerial or executive in nature within one year. 
Accordingly, the totality of the evidence must be considered in analy zing whether the proposed 
managerial or executive position is plausible considering a petitioner's anticipated staffing levels and 
stage of development within a one-year period . See 8 C.F .R. § 214 .2(1)(3)(v)(C) . 
A. Duties 
Based on the definitions of executive capacity, the Petitioner must first show that the Beneficiary 
· will pertonn certain high-level responsibilities . Champion World. Inc. v. INS, 940 F.2d 1533 (9th 
Cir. 1991) (unpublished table decision) . Second , the Petitioner must prove that the Beneficiary will 
be primarily engaged in executive duties , as opposed to ordinary operational activities alongside the 
company's other employees. See Family Inc. v. USCIS, 469 F.3d 1313, 1316 (9th Cir. 2006); 
Champion World, 940 F.2d at 1533. 
The Petitioner has signed a franchise agreement to operate a escape room 
business. At the time of filing , the Petitioner had one operational room at its location, while the 
second room was under con struction. The Petitioner indicated it would open a second location in its 
third year of operations. 
The Petitioner has consistently stated that the Beneficiary, as CEO, will perfonn the following duties: 
• Direct, plan the management of the company, lead and develop the company 's 
strategy, procedures for bus.iness development , specifically in establishment and 
construction of escape rooms- 20% of time 
• Establish the goals and policies of the company relating to its establishment and 
continuance [sic] growth the company's business- 20% of time 
• Exercise wide latitude in ·decision-making of the company relating to efficiency, 
quality, service, customer satisfaction , and 
marketing - I 0% oftime 
• Confer with the foreign affiliate on budget issues , capital investment and financial 
matters - 10% oftime 
• Direct and oversee organizations financial and budgetary activities of the company 
- 15% oftime 
• Direct, coordinate human resources activities relating to appointment of department 
heads and managers tor company's operation- I 0% of time 
• Analyze 
activity reports and tinancial statements to detem1ine progress and status in 
anaining objective s and revise objectives and plans in accordance with current 
conditions- I 0% 
• Direct , head presentations, public relations meetings , relations with Franchisor -
5% of time. As the CEO of the company the beneficiary will be the face of the 
company. The beneficiary will represent the company on major events, 
conferences, media events. The beneficiary will confer with franchisor on directing 
company's compliance with franchise agreement and growth . 
.
Ma({er of E-R-1- Inc. 
The Petitioner emphasizes that the Director acknowledged that these duties "appear executive in 
nature." The duties appear executive in nature, in part, because the first three duties listed, 
accounting for 50% of the Beneficiary time, closely resemble the statutory definition of "executive 
capacity" at section 10 I (a)( 44)(8) of the Act. However, these general statements do not provide any 
meaningful insight into the Beneficiary's expected day-to-day duties. Conclusory assertions 
regarding the Beneficiary's employment capacity are not sufficient Merely repeating the language 
of the statute or regulations does not satisfy the Petitioner's burden of proof. Fe din Bros. Co .. Ltd. v. 
Sava, 724 F. Supp. 1103, 1108 (E.D.N .Y. 1989), aff'd, 905 F. 2d 41 (2d. Cir. 1990); Avyr Assoc.\· .. 
Inc. v. Meissner, 1997 WL 188942 at *5 (S.D.N.Y.). 
While these broad responsibilities are indicative of the Beneficiary's le\•el of authority as the senior 
employee in the company, it was not unreasonable for the Director to question the amount of time 
the Beneficiary would actually spend on executive-level tasks. On appeal, the Petitioner addresses 
the Beneficiary's responsibility for directing the company's planning, strategy and business 
development in more detail, noting that the escape room industry is "high-paced and dynamic," and 
will require the Beneficiary to stay up to date with competitors. Specifically, the Petitioner indicates 
that the Beneficiary must constantly monitor the competition, reassess, and reevaluate the entire 
strategy of the business, its pridng and promo6on strategy, technology and its policies and 
procedures. As an example, the Petitioner states that the Beneficiary already made a decision to 
change the scenario of one of its quest rooms and to increase the number of players in each room. 
However , the record does not support the Petitioner's claim that the Beneficiary would spend a full 
50% of his time on policies, strategies, and executive decisions within one year. 
Many aspects of the Petitioner's operations are determined by the franchisor according to the terms of 
the franchise agreement. While the Beneficiary can decide which of the franchisor's standard escape 
room scenarios to offer, the franchisor is responsible for dictating the layout of the room, dictating the 
supplies that must be ordered, implementing improvements to its system, and setting the "operational 
systems, procedures, policies, methods and requirements" set forth in the franchise operating model, as 
well as assisting with the promotion of the business. While there are some executive level decjsions 
that would reasonably be left to the Beneficiary, the Petitioner has not explained how the Beneficiary, 
rather than the franchisor, would be the one responsible for constantly adapting the 
brand to keep up with the "high-paced and dynamic" escape room industry. 
The Petitioner also indicates that the Beneficiary will spend 25% of his time on djrecting and 
overseeing financial, budgetary, and investment matters, but does not further elaborate on the 
specific tasks he will perform, or indicate who will be responsible for routine financial matters such 
as banking , bookkeeping, and other financial recordkeeping. Therefore, although we do not doubt 
that the Beneficiary will make financial decisions for the company, the record does not support that 
all of his duties in this area would be executive, as claimed. 
The fact that the Beneficiary will direct a business as its owner and senior employee does not 
necessarily establish eligibility for classification as an intracompany transferee in an executive 
capacity within the meaning of section 10 l(a)(44) ?f the Act. By statute, eligibility for this 
classification requires that the duties of a position be "primarily" executive or managerial in nature. 
4 
.
Matter of E-R-1- Inc. 
Sections 101 (A)(44)(A) and (B) of the Act. Therefore, even though the Beneficiary may exercise 
discretion over the Petitioner's day-to-day operations and possess the requisite level of authority 
with respect to discretionary decision-making, a ~road oyerview of his responsibilities is insufficient 
to establish that his actual duties would be primarily executive in nature within one year. 
B. Projected Staffing and Business Plan 
As noted, the Petitioner intends to operate one escape room location with two 
rooms. The Petitioner indicates 
that it will conti~ue with one location until its third year. In the first 
year, the Petitioner intends to hire one location manager and.two start: in addition to the Beneficiary, 
who will also work at the escape room location. The Petitioner now provides evidence that it carried 
out this hiring plan by August 2017, opened its second room, and had three employees as ofthe date 
ofthe appeal. 
It has assigned the following duties to the location manager: 
• Run the day-to-day operations ofthe escape room location 
• Perform marketing and advertising activities 
• Support sales and manage customer communications 
• Oversee staff members and provide training for the staff members, manage statT schedule 
• Report directly to the CEO with performance updates and progress on company's 
goals 
The two staff members perform the follmving duties: 
• Greeting customers, solving customer-related problems 
• Ensuring excellent guest experience 
• Monitoring teams during their escape-room experience 
• Providing technical support and maintenance of the props and elements of the 
room 
• Managing phone calls and keeping the booking software up to date 
• Reporting to the Location Manager · 
The Petitioner has not provided its operating hours, but the assumptions in the company's business 
plan suggest that the company is open seven days per week with longer hours on weekends than on 
weekdays. The franchise agreement requires franchisees to hire "a sufficient number of employees 
suitably qualified to operate the Business in compliance with the System and the Franchisor's 
instructions as set forth in the Manual." The· Petitioner did not provide additional infonnation 
regarding this system or manual and it is unclear what level of staffing is required to operate the 
escape room franchise or whether a three-person staff would be sufficient to handle all the 
operational needs of the location. We further note that the franchisor requires franchisees to send 
two "managers or administrators" for initial training, which suggests that the business may require 
more than one person to pertorm location manager responsibilities. 
5 
Maller of E-R-1- Inc. 
The statutory definition of the term "executive capacity" focuses on a person's elevated position 
within a complex organizational hierarchy, including major components or functions of the 
organization, and that person's authority to direct the organization. Section I 0 I (a)( 44 )(B) of the 
Act. Under the statute, a beneficiary must have the ability to "direct the management" and "establish 
the goals and policies" of that organization. l':lherent to the definition, the organization must have a 
subordinate level of managerial employees for a beneficiary to direct and they must primarily focus 
on the broad goals and policies of the organization rather than the day-to-day operations of the 
enterprise. An individual will not be deemed an executive under the statute simply because they 
have an executive title or because they "direct" the enterprise as the owner or sole managerial 
employee. A beneficiary must also exercise "wide latitude in discretionary decision making" and 
receive only "general supervision or direction from higher level executives, the board of directors, or 
stockholders of the organization." !d. 
Here, even though the Beneficiary holds the senior position within the company, and the Petitioner 
indicates that he will primarily focus on the company's strategic direction, policies, and objectives, 
the record does not show that the lower level staff would sufficiently relieve him from regular 
involvement in the day-to-day operations of the business. The fact that the Petitioner did not include 
clearly non-qualifying duties in the Beneficiary's overly broad position description does not lead to a 
conclusion that he would only perform executive level duties as claimed. 
Section I 0 I (a)(44)(C) of the Act requires that USC IS take into account the reasonable needs of the 
organization in light of the overall purpose and stage of development of the organization if staffing 
levels are used as a factor in determining whether an individual will be acting in a managerial or 
executive capacity. However, it is appropriate for USCIS to consider the proposed size of the 
petitioning company in conjunction with other relevant factors, such as the absence of employees 
who would perform the non-managerial or non-executive operations of the company. Family Inc. v. 
USCIS, 469 F.3d 1313 (9th Cir. 2006); Sysrronics Corp. v. INS. 153 F. Supp. 2d 7, 15 (D.D.C. 
200 I). 
The Petitioner intends to employ a CEO, a manager, and two staff at its franchised escape room 
business. We agree with the Director that the evidence is not sufficient to show that the Petitioner's 
staff of three employees is sufficient to relieve the Beneficiary from involvement in greeting and 
providing instructions for groups of customers, monitoring two escape rooms, answering phones, 
and performing other tasks related to local marketing, preparing reports for the franchisor, and 
routine clerical, administrative, and finance-related duties during the company's standard operating 
hours. The Petitioner's claim that the Beneficiary will work at the escape room location (which has 
a reception area and two escape rooms but no separate office) but will not be involved in any way in 
providing the company's services is not sufficiently supported by the record. 
While . performing non-qualifying tasks necessary to produce a product or service will not 
automatically disqualify a beneficiaryas long as those tasks'are not the majority of a beneficiary's 
duties, a petitioner still has the burden of establishing that a beneficiary will "primarily" perform 
6 
Mauer of E-R-1- Inc. 
executive duties within one year. See section 10l(a)(44) of the Act. The Petitioner did not provide a 
sutliciently detailed breakdown of the Beneficiary's actual proposed tasks or explain how the three­
person staff would be sufficient to remove him from involvement in non-executive tasks. 
On appeal, the Petitioner refers to non-precedent decisions in which we overturned service center 
decisions involving L-lA new oftices. These decisions were not published as precedent and therefore 
do not bind USCIS officers in future adjudications. See 8 C.F.R. § 103.3(c): Non-precedent decisions 
apply existing law and policy to the specific facts of the individual case, and may be distinguishable 
based on the evidence in the record of proceedings, the issues considered, and applicable law and 
policy. The Petitioner maintains that some of the non-precedent decisions referenced also involved 
smaller companies that did not intend to employ large number of employees within their first year. Our 
decision here is not based solely on the number of employees subordinate to the Beneficiary. As 
discussed, the Petitioner did not provide a sufficient position description for the Beneficiary, and the 
evidence submitted does not show how the three-person staff will be sufficient to perform most of the 
company's non-executive functions. 
The Petitioner has consistently stated that the Beneficiary will occupy the senior position in the new 
office, but has not submitted a job description or supporting evidence sufticient to demonstrate that 
he would primarily engage in executive duties, or that the new otlice would support an executive 
position, after the initial year of operations. 
Ill. CONCLUSION 
The Petitioner did not establish that its new office would be able to support an executive position 
within one year of approval of the petition. 
ORDER: The appeal is dismissed. 
Cite as Matter ofE-R-I- Inc., ID# 1004438 (AAO Mar. 13, 2018)