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Franchise Investment for E-2 Visa

The most popular path to US investor visa approval

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Most Popular E-2 Path

Proven track record

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$150K-$350K

Sweet spot investment

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FDD Required

14-day review period

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High Approval Rate

Strong documentation

Why Franchises Are Ideal for E-2 Visas

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When my clients ask about the safest path to an E-2 visa, I almost always point them toward franchises. There is a reason franchises dominate E-2 applications: they check every box that immigration officers look for.

Why Franchises Work

  • Proven business model officers can verify
  • Clear investment structure via FDD
  • Job creation demonstrates economic impact
  • Training shows active management
  • Established track record for renewals

E-2 Requirements Met

  • "Substantial" investment documented
  • "Real, operating enterprise" verified
  • Active management role clear
  • Not marginal enterprise
  • Source of funds traceable

Franchise vs. Independent Business

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Franchise Advantages

  • Proven track record officers can verify
  • Standardized documentation
  • Training and operational support
  • Brand recognition and marketing
  • Higher approval rates for E-2
  • Easier renewals with franchise history

Franchise Considerations

  • Ongoing royalty fees (4-8% of revenue)
  • Marketing fund contributions (2-4%)
  • Less operational flexibility
  • Territory restrictions
  • Franchisor approval required
  • Must follow system standards

Investment Ranges by Category

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Franchise investments vary widely. Here is what I typically see across different categories:

$50K-$150K
Service-Based
Cleaning, tutoring, consulting
$150K-$350K
Food & Quick Service
Fast casual, coffee, juice bars
$350K-$750K
Full-Service Restaurant
Casual dining, pizza, ethnic
$500K-$2M+
Hotels & Gyms
Hotels, fitness, car washes

My Recommendation

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Sweet Spot: $150K-$350K investment range

For first-time E-2 applicants, I recommend franchises in the $150K-$350K range. This amount is clearly "substantial" for E-2 purposes while remaining manageable.

Service-based franchises under $100K can work but require stronger documentation to prove the investment is proportional to the business type.

Step-by-Step: Buying a Franchise for E-2

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  1. Confirm E-2 Treaty Country Eligibility - Not all countries have E-2 treaties with the United States. Before anything else, verify your country of citizenship qualifies.
  2. Research Franchise Opportunities - Use FRANdata, Franchise Grade, and the FDD database. Focus on franchises with at least 50 operating units and a 5+ year track record.
  3. Request the Franchise Disclosure Document (FDD) - Federal law requires this 23-item document at least 14 days before you sign anything.
  4. Conduct Due Diligence - Call existing franchisees (Item 20 lists all of them). Visit operating locations. This research supports your E-2 application.
  5. Structure the Investment - Form a US entity (typically an LLC or Corporation) to hold the franchise. Investment funds must trace directly from your accounts.
  6. Sign the Franchise Agreement - Only sign after review confirms the structure works for E-2 purposes. Pay franchise fee and begin build-out.
  7. Apply for E-2 Visa - With signed agreements, proof of investment, and business plan ready. Apply after at least 75% of investment is committed.

Key FDD Items I Review

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FDD = Franchise Disclosure Document (23 items required by law)

Item 5: Initial Fees

  • Franchise fee: typically $25K-$75K
  • Just one component of total investment
  • Do not confuse with full cost

Item 7: Estimated Initial Investment

  • All startup costs breakdown
  • Real estate, equipment, inventory
  • Should align with E-2 investment

Item 19: Financial Performance

  • Actual revenue and profit data
  • Not all franchisors include this
  • Gold for your E-2 business plan

Item 20: Franchisee Information

  • Lists every franchisee with contact info
  • Call at least 10 current operators
  • Essential for due diligence

Item 21: Financial Statements

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Audited financials of the franchisor. If the franchisor is financially unstable, that is a red flag for both your investment and your visa application.

Red Flags to Watch

  • Declining revenue trends
  • High franchisee turnover
  • Pending litigation issues
  • Recent bankruptcy filings

Quick Service Restaurants

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Subway, Dunkin', Wingstop, Jersey Mike's. These require $150K-$500K and create 5-15 jobs. High visibility and proven models make them E-2 favorites.

Fitness and Health

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Orangetheory, F45, Massage Envy. Investment ranges from $200K-$600K. Growing sector with strong unit economics.

Home Services

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Servpro, Two Maids, Mosquito Joe. Lower investment ($75K-$200K) with mobile or home-based models. Excellent for service-oriented investors.

Education and Tutoring

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Kumon, Mathnasium, The Goddard School. Investment varies widely ($100K-$750K). Meaningful work with community impact.

Automotive

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Meineke, Maaco, Take 5 Oil Change. Typically $200K-$500K. Recession-resistant with repeat customers.

Common E-2 Franchise Mistakes

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Avoid these errors that lead to visa denial

Mistakes I Help Clients Avoid

  • Insufficient investment: Must be "substantial" relative to business type. $50K franchise fee alone may not qualify.
  • Passive investment: E-2 requires you to direct and develop the business. Absentee ownership does not work.
  • Funds not at risk: Money in escrow with full refund rights is not "committed." Immigration wants irrevocable investment.
  • Poor source of funds documentation: Every dollar must trace to legitimate sources. Start gathering bank statements now.
  • Marginal enterprise: If the business only supports you and your family with no job creation, approval is unlikely.