Start with the E-2 eligibility and application overview
Read the operator’s actual authority
The investor must develop and direct the enterprise. At least 50% ownership may establish control, or operational control may be shown through a managerial position or another corporate device. Identify which decisions belong to the applicant, the franchisor and any other owners. Brand standards and ownership rights should be explained as they actually operate, without assuming every franchise is eligible or disqualified.
Separate nationality from operating control
The applicant needs the relevant treaty nationality, and the enterprise generally needs at least 50% ownership by nationals of the treaty country. A U.S. brand does not establish the nationality of the investing enterprise. Trace the actual ownership rather than treating permission to use a trademark as ownership of the franchisor.
Assess the investment and business
Show lawful, substantial capital committed at risk in a real, nonmarginal enterprise. There is no universal dollar minimum or franchise-fee safe harbour. Nonmarginality concerns more than minimal living for the investor and family or the applicable significant economic contribution standard. Funds secured by the enterprise’s assets do not qualify as investor capital on that basis. The applicant must intend to depart when E status ends; paying the franchise fee is not work permission or permanent residence. When relying on future capacity, it should generally be achievable within five years after normal business activity begins. Borrowing secured only by personal assets, or unsecured personal borrowing, may qualify under the other investment conditions; debt secured by enterprise assets is excluded even when personal assets also secure it.
Committed funds and real control, alongside the marginality question
Distribution agreements often arrive with escrow terms, refundable deposits, minimum purchase commitments and revocation clauses. Money counts toward the E-2 investment when it has been spent on the business or is irrevocably committed to it: purchased equipment, a signed commercial lease with rent paid, inventory, permits, professional fees and funds held in escrow that release on visa approval. The enterprise has to satisfy the non-marginality requirement, so describe its operating activity, resources, and realistically supported financial expectations rather than pointing to unexplained growth projections. For a service franchise that means vehicles on the road, technicians hired or committed, licences obtained and customers being served. A buyer taking a majority of shares while the seller retains a veto over hiring, borrowing and distributions may not have the control the classification assumes. Amount is judged proportionally: substantial in relation to the total cost of purchasing an established enterprise or establishing a new one, which is why a modest sum can be substantial for a service business and inadequate for a production facility. The investor’s nationality, funding and direction of a real enterprise must be assessed alongside substantiality and non-marginality; a promising customer relationship is not the entire case. The enterprise also must not be marginal; forecasts, staffing logic and credible operations should explain its capacity beyond the investor's household needs.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.