A key requirement of the E-2 treaty investor visa is that the applicant place their investment funds at risk. In other words, funds must be fully committed, and if the business does not work out, the investment risks a partial or total loss. For that reason, many investors choose to purchase a franchise, which comes with reduced risk because you are investing in a business model that has already been tried and tested.
Benefits of Investing In A Franchise for E-2 Visas
While franchises aren’t risk-free and require proper research, many choose this pathway due to the established reputation. Investing in a known brand that has had success across a large region is a strong signal to USCIS or consular officers deciding on your case.
Furthermore, franchises have established operational models and training and support networks that make navigating a new market much more accessible for international entrepreneurs.
Lastly, with the many data points of other franchises to draw from, providing projections for growth, revenue, and job creation is a much easier task.
Despite the above benefits, it is still important to develop your own localized business plan, as each geographic area and territory is different. Franchises are not guarantees, and companies like Krispy Kreme, despite being a well-established brand, have had franchises underperform and close when they failed to research the market properly.
How Much Do Franchises Cost For E-2 Investors?
The cost of a franchise ranges widely depending on the industry and location. Companies typically publish a Franchise Disclosure Document (FDD), which states the expected costs.
There are many accessible franchise options ranging from $80,000 to $200,000 that are suitable for E-2 treaty visas. The most common fields include:
- Food and Beverage: Restaurants, bars, cafes, smoothie bars, ice cream parlors.
- Health and Fitness: Gyms, spas, fitness studios, and personal training studios.
- Business Services: Shipping & Printing Centers, marketing and advertising, cleaning and janitorial.
- Automotive: Repair and brakes, tires, window tinting and styling, oil changes and maintenance.
- Personal Care and Pet Services: Nail and hair salons, barber shops, daycare and boarding, pet grooming.
At VisaNation, our attorneys recently supported a tire shop owner secure an E-2 visa with an investment of $100,000. In the petition, we highlighted the area’s high vehicle ownership and reliance on personal transport to support realistic five-year revenue projections exceeding $1 million.
How Much Does The E-2 Visa Cost For Franchisee Investors?
In addition to the investment, you must pay the fees associated with the visa application. The main fee is $510 for Form I-129 (if in the U.S.), or $315 for Form DS-160 (if filing from abroad).
If you expect your franchise to hire more than 25 full-time employees, the fee is $1,015 plus additional fees.
What Are The Requirements for E-2 Visa Franchisees?
- You must be a national of an E-2 treaty country
- As an E-2 visa investor, you must play an active role in the business. This means playing a key part in the day-to-day operations of the business.
- You must have at least 50% ownership of the enterprise or possession of operational control through a managerial position or other corporate device.
- You must show that the funds used in your investment have not been obtained, directly or indirectly, from criminal activity.