Guide To Find Franchise For E-2 Visa
Tips To Find Franchise For E-2 Visa
Immigration authorities favorably view franchises since they are highly developed and already successful business models with tried and tested processes in place. In addition, it is backed by a supportive franchisor who can train and guide you to ensure success, making it highly suitable even for first-time entrepreneurs.
Here are our tips on how to find franchise for E-2 visa and for your needs:
Understand the E-2 visa requirements
Before exploring franchise options, ensure you fully understand the E-2 visa requirements, especially the substantial investment requirement. This ensures that whichever franchise you select will align with the E-2 requirements.
Read our in-depth E-2 visa guide for more information. We also have a franchise guide.
Consider your preferences and expertise
E-2 visa investment is a long-term investment, so to find franchise for E-2 visa you will enjoy operating is crucial. In addition, it will be prudent to find franchise for E-2 visa that aligns with your experience and skills. For instance, if you have a hospitality and food and beverage background, it makes sense to find franchise for E-2 visa in that industry, such as cafes, fast-casual restaurants, or even bubble tea franchises.
Seek franchises with a successful track record
Look for franchises with a proven track record of success. Established franchises often have tried-and-tested business models, recognized brand names, and comprehensive support systems. Search for franchises with a history of sustaining profitability and growth, as these factors will help ensure the USCIS adjudicator will look at your case favorably.
Seek franchises that allow escrow (optional)
Since applying for an E-2 visa involves committing to a business beforehand, you are putting money at risk before you know if you will be approved for an E-2 visa. For that reason, we recommend that you find franchise for E-2 visa that will allow you to place the franchise fee into escrow, thus protecting you financially in case your visa is denied.
Consider job creation
Remember that the E-2 visa requires your business not to be marginal. In other words, it cannot exist solely to support you and your family. Thus, we recommend looking into a franchise with plenty of growth opportunities and job creation. This way, it is easier to meet your projections for hiring personnel, making future renewals a breeze by proving your business is not marginal.
Consult!
Lastly, we recommend consulting existing E-2 visa investors, franchise consultants, and experienced immigration attorneys.
Seeking advice from individuals with experience in E-2 visa franchises can save you a lot of headaches and potential pitfalls.
Luckily, our team of expert immigration attorneys and business plan writers at E-2visafranchises is here to help you navigate the E-2 visa process. We also specialize to find franchise for E-2 visa according to your needs, with over 700 franchises to choose from! We will ensure you receive tailor-fit advice and franchise options suited to your expertise and preferences.
Message us for a free consultation.
What Are the Potential Disadvantages of Investing in a Franchise for an E-2 Visa?
Franchises are a popular option for people applying for the E-2 Treaty Investor Visa. They come with a brand name, a business model, and a support system that many investors find appealing. But a franchise isn’t a guaranteed fit—especially when your visa, your livelihood, and your freedom to run a business are on the line. What are the potential disadvantages of investing in a franchise for an E-2 visa?
1. You’re Working Within Someone Else’s System
When you invest in a franchise, you’re not starting from scratch. But it also means giving up a level of control. The franchisor lays out how things should be done, and that includes branding, marketing, operations, and sometimes even pricing. If you’re someone who wants the freedom to try new ideas or customize your business, a franchise might feel too locked down.
2. Fees Don’t End After the Initial Investment
Buying the franchise is just the beginning. After you pay the upfront franchise fee, there are monthly royalties, often based on gross revenue, not profit. On top of that, you’ll likely be required to pay into a marketing fund—whether or not those campaigns help your specific location. These regular costs can chip away at your bottom line faster than many new owners expect.
3. Growth Isn’t Always in Your Hands
Most franchise agreements come with a defined territory. That means the franchisor agrees not to open another location of the same brand in your immediate area. Sounds fair—but if your assigned region has limited demand or competition is stiff, your ability to grow might be boxed in. And expanding into a new location? You’ll need the franchisor’s permission, and they might have other plans.
4. The Brand’s Mistakes Can Become Your Problem
When one franchise location messes up, the ripple effect can hit everyone. If a fellow franchisee runs a poor operation or if the franchisor ends up in legal trouble or public controversy, your business can suffer—even if you’re doing everything right. You benefit from the brand’s reputation, but you’re also exposed to its missteps.
5. Selling the Business Isn’t Always Simple
Thinking about an exit plan before you start is smart. But with a franchise, it’s not as easy as finding a buyer and handing over the keys. Most franchisors require approval before a sale can go through, and they may set specific terms, charge transfer fees, or reject potential buyers altogether. This can slow down—or even block—the sale, especially if your location hasn’t performed well.
6. Some Franchises Don’t Qualify for the E-2 Visa
Under USCIS rules, the investment must be considered “substantial,” and the business can’t be marginal. In plain terms, it needs to be a real business that can generate enough income to do more than just support you and your family. Some franchises, particularly ones with low startup costs or limited earning potential, may not meet this standard—even if they look promising.
7. If the Business Ends, So Could Your Visa
This is one of the most important points. Your E-2 visa is directly connected to the business you invest in. If that business fails, or if your agreement with the franchisor ends and you have to close, your visa may no longer be valid. And because franchise contracts are for fixed terms, there’s always a chance they won’t be renewed. That adds another layer of uncertainty to long-term plans.
What must an E-2 visa applicant demonstrate about their role in the enterprise?
An E-2 Treaty Investor Visa applicant must demonstrate that they will develop and direct the U.S. enterprise. This is typically established by showing at least 50% ownership or having operational control through a managerial position or other corporate mechanism. The applicant must actively guide the business toward success, ensuring it is a bona fide enterprise producing goods or services for profit. Passive investments do not meet E2 visa criteria.
What Constitutes the Process of Investing in a Franchise for an E-2 Visa?
If you’re applying for an E-2 visa through a franchise, U.S. immigration officials expect to see real money on the line and clear steps already taken to launch or buy the business.
In practical terms, the process of investing typically includes the following actions:
1. Select and Commit to a Specific Franchise
You can’t just say you plan to buy into a franchise. You need to identify the exact franchise, review the Franchise Disclosure Document (FDD), and begin the process of signing the agreement. A letter of interest isn’t enough since the United States Citizenship and Immigration Services (USCIS) looks for clear signs that you’re past the research phase.
2. Invest funds
The funds you’re using—whether to pay the franchise fee, lease a location, or cover startup costs—must be your own, legally obtained, and already committed. This means you’ve transferred the money, paid vendors, signed contracts, or entered a valid escrow agreement that releases funds once your visa is approved.
Holding money in a business account or saying you’ll invest later doesn’t meet the requirement.
3. Begin Setting up the Business
The USCIS expects you to be in the process of investing, which means real steps have been taken. For a franchise, this might include:
- Signing the franchise agreement
- Paying the franchise fee
- Securing a lease or retail space
- Ordering equipment or signage
- Hiring staff or beginning training
- Paying legal or consulting fees tied directly to the launch
The government wants to see that the investment is active.
4. Be Close to Launching the Business
You don’t have to be open yet, but you do need to be close to opening. The USCIS needs to see that the business will begin operating soon after the visa is issued. A half-finished plan or vague timeline will raise red flags.
5. Have Operational Control
You must own at least 50 percent of the franchise or show that you have operational control. You’re expected to develop and direct the business. You need to prove that you’ll be managing it day-to-day, not acting as a passive investor.
How Is the "Substantial" Investment Requirement Determined for an E-2 Visa?
To qualify for an E-2 Treaty Investor Visa, applicants must show that their investment is substantial. The United States Citizenship and Immigration Services (USCIS) doesn’t set a fixed dollar amount. Instead, it looks at several practical factors to decide whether the investment meets the standard.
Here’s how to determine if your investment is substantial enough:
1. It Depends on the Total Cost of the Business
Your investment is measured against the total cost of starting or buying the business. The smaller the business, the higher your share of the total investment needs to be. If you’re launching a small business that requires $100,000 to operate, an investment of $80,000–$100,000 is likely to be viewed as substantial. If you’re buying into a business that costs $10 million, investing a smaller percentage—say $3 million—might be enough.
This is called the proportionality test, and the USCIS applies it on a sliding scale.
2. The Investment Must Be Committed and at Risk
The USCIS wants to see that your money is already committed to the business. That means it’s spent, or legally bound to be spent, on real startup or operational costs. This could include buying equipment, signing a lease, paying employees, or entering into contracts.
The funds must also be at risk, meaning they could be lost if the business fails. Simply holding money in a bank account doesn’t meet the requirement.
3. It Has to Be Enough to Make the Business Work
The USCIS looks at whether the investment is large enough to support the business’s success. If the amount you put in isn’t enough to get the company up and running, it won’t qualify, no matter how committed you are.
4. The Business Can’t Be Marginal
The E-2 visa isn’t intended for businesses that only support the investor’s basic needs. The company should either already produce enough income to support more than just you and your family or show a clear path to doing so within five years.
This is known as the marginality test.
Bottom Line
A substantial investment is one that shows real financial commitment. It must be proportionate to the cost of the business, fully committed, subject to loss, and large enough to make the business viable. USCIS looks at the full picture to decide if your investment meets the standard.
What factors does a consular officer examine when analysing an E-2 visa application?
When someone applies for an E-2 Treaty Investor Visa, a U.S. consular officer has a clear job: check if the applicant meets every legal requirement. The decision isn’t based on potential or good intentions. It’s based on what’s in front of them — documents, facts, and answers.
Here’s what they review:
1. Your Citizenship
They start by checking your passport. You must be a citizen of a country that has a treaty of commerce and navigation with the United States. If you’re not, you’re not eligible. This rule is black and white.
2. The Investment
Next, they look at the money. Has it been invested yet, or is it actively being invested? Is it a large enough amount to support a real business? There’s no fixed number, but it has to be significant compared to what the business needs.
3. Where the Money Came From
Officers want to see that your investment funds came from legal sources. In other words, you need to prove how you earned the money. You also need to show that it’s your money, and that you’ve put it at risk in the business.
4. The Business Itself
They’ll check if the business is real and doing something. Is it producing goods or services? Is it actually operating — or just a company on paper? A real business has employees, transactions, and activity.
5. Is the Business Big Enough?
The officer needs to see that the business can support more than just you. It has to generate enough income — either now or within five years — to support you and your family. If it just covers your personal expenses, that’s not enough.
6. Your Role in the Business
They also ask: are you actually running the business? You have to show that you’re in charge — either by owning at least half the company or holding a key leadership role. You can’t be a silent investor.
7. Your Plans After the Visa
Finally, they look at your intent. The E-2 is a temporary visa. You have to show that you plan to leave the U.S. when your status ends. That doesn’t mean you need a return ticket or a home abroad, but you do need to make your intent clear.
Why the Timing and Requirements of a Franchise Can Be Problematic for an E-2 Visa Application
Buying into a franchise may seem like a smart way to qualify for the E-2 Treaty Investor Visa, but there are specific timing issues and legal requirements that can complicate the process. If not carefully managed, these factors can put your visa application and your investment at risk.
Franchise Agreements Often Require Payment Before Visa Approval
Many U.S. franchisors expect payment of the franchise fee before they finalize the agreement. In most cases, this fee is non-refundable. That’s a problem for E-2 applicants because the visa is never guaranteed.
Under E-2 rules, your funds must be committed and at risk, but the business doesn’t need to be fully operational before you apply. Timing matters. If you fully sign the franchise agreement and transfer funds too early, and then the visa is denied, you could lose your investment. On the other hand, if you wait too long to show commitment, the U.S. consulate may say the investment isn’t far enough along.
This puts applicants in a tough spot: you must show the funds are irrevocably committed, but without locking yourself into a contract you can’t use if the visa is denied.
Franchise Timelines Don’t Always Match Visa Processing
Franchise systems move fast. Many franchisors want locations to open within a specific timeframe after signing. But E-2 visa processing can take weeks or even months, depending on the consulate.
If the business needs to launch by a certain date — for example, if you’re required to sign a lease or open doors within 90 days — and your visa approval is delayed, you may breach your franchise agreement or lose access to your territory.
The visa and the franchise must be timed together, or you risk violating one while waiting on the other.
Franchise Models Must Still Meet E-2 Visa Requirements
Buying a franchise doesn’t automatically mean you qualify for an E-2 visa. You still have to meet every legal requirement, including:
- Substantial investment: The total cost of buying and operating the franchise must be high enough to be considered substantial under U.S. law. Cheaper franchise models may not qualify.
- Business must not be marginal: It has to generate enough income to support more than just the investor.
- Active ownership: You must prove that you will actively direct and develop the business. If the franchisor limits your control too much, that could be a problem for the E-2 review.
Franchisors often offer a structured path, but it’s the investor’s responsibility to ensure their specific agreement meets visa requirements.
In Short
Franchises can be a viable option for E-2 visa applicants, but only when timing and legal obligations are aligned. You may need to negotiate the franchise terms to delay full commitment until your visa is approved — or structure your investment in stages that comply with immigration rules.
Before signing anything, it’s important to:
- Understand your obligations under the franchise agreement
- Ensure your investment structure meets E-2 visa rules
- Know how long the visa process takes at your chosen U.S. consulate
How can an applicant prove that their enterprise is a real, operating, non-marginal commercial enterprise?
For the E-2 Treaty Investor Visa, U.S. immigration law requires that the business is not just an idea or a shell. It must be real, actively operating, and have the capacity to support more than just the investor.
1. Proof the Business Is Real and Operating
A real enterprise must be a functioning commercial entity that offers goods or services for profit.
To show this, applicants should present:
- Active business licenses or permits
- Signed lease agreements
- Invoices, contracts, or client agreements
- Payroll records (if employees are hired)
- Bank statements showing business transactions
- Proof of inventory, equipment, or service infrastructure
- Marketing or promotional materials (business website, brochures)
The goal is to prove the business exists beyond paper — it is operating in the real world.
2. Proof the Business Is Not Marginal
U.S. regulations define a marginal enterprise as one that does not have the capacity to generate more than minimal living for the investor and their family.
To prove the business is non-marginal, applicants should include:
- A detailed business plan with:
- 5-year financial projections
- Job creation estimates
- Market research
- Expense and revenue forecasts
- U.S. tax returns or projected filings
- Employee wage records or payroll if jobs have already been created
- Organizational chart (if applicable)
- Any signed employment contracts for staff
USCIS and consular officers use this information to assess whether the business can support more than the investor.