E-2 Visa Immigration
The E2 Visa Program
An E2 Visa is a non-immigrant, temporary US visa that requires applicants to invest either in an existing business or to start a new business in the US. To qualify an applicant must:
1.
Be a citizen of a country that has an active trade treaty with the United States – there are currently approximately 80 treaty countries – notable exclusions include China (ex Taiwan), India, Brazil and Russia. The full and current list can be accessed here.
2.
Have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide business in the United States. This is where a franchise might be the best vehicle to meet this requirement.
3.
Be seeking to enter the United States solely to develop and direct the business.
4.
The business must be capable of supporting the applicant and his/her family and if a new business, must demonstrate the ability to do so within 5 years. We have a list of franchises that will work with you on this process and accept E-2 Visa candidates into their system.
The rules do not define “a substantial amount of capital,” however, these are generally interpreted as follows:
To qualify for an E-2 visa, the applicant must invest a substantial amount of capital in a bona fide business in the United States. The amount of capital required is not specified, but it is generally considered to be at least $100,000 – $125,000. If the applicant plans to invest $100,000, then the vast majority of this (80-90%) must have been invested at the time of the application. However, if the planned investment is higher, then a lower percentage can be invested prior to the application submission.
For example, if the applicant plans to invest $200,000, then they could invest $100,000 at the time of the application and the remaining $100,000 within six months of the application approval. The amount of capital that must be invested upfront is determined by the USCIS on a case-by-case basis, and they will consider factors such as the size and nature of the business, the applicant’s financial resources, and the likelihood of success of the business.
It is important to note that the investment must be at risk. This means that the applicant cannot simply invest the money in a bank account or other safe investment. The money must be invested in the business and used to operate the business.
The investment must also be a bona fide business. This means that the business must be real and operating in the United States. It cannot be a sham or a front for illegal activity. Franchises help you meet this requirement.
If you are considering applying for an E-2 visa, it is important to consult with an immigration attorney to ensure that you meet all of the requirements, including the investment requirement. We have immigration attorneys who specialize in the E-2 visa process.
Some additional thoughts:
- E2 Visas are temporary visa’s – granted initially for 2-5 years (the time period varies by treaty country), but in all cases these can be renewed for an unlimited number of times.
- The spouse of a visa applicant can obtain a working visa (ie that spouse would be able to obtain a job, if required, in the US) – many of our clients have used this approach to provide an income source, and in some cases healthcare benefits, while the visa applicant starts/builds the business.
- The E2 Visa also applies to the applicants children under the age of 21.
Why invest in a franchise to support an E-2 Visa application?
When people think of franchises, their first thoughts are often of iconic food brands such as McDonald’s, Dunkin’ Donuts etc. However, in the US there are over 4,000 franchise brands, spread across almost every industry category – providing services as diverse as cleaning, education, pet care, junk removal and senior care. The investment required to start a franchise can vary widely, with some businesses requiring as low as $65,000 – $75,000 (although note our comments above with regards the required level of investment for an E2 visa application). There are many franchise options where the investment amount to start the business is in the $100,000 – $125,000 range.
If you are considering applying for an E-2 Visa you really have three choices in terms of a business:
Buy an existing business:
- This can be a great option… if you can find the right business, at the right cost, in the market/location you want to relocate to.
- Business resales usually fall into one of two categories:
- The E2 Visa also applies to the applicants children under the age of 21.
Or
- A failing business – this could be a great opportunity… but the reason for failure might be the business model, location or some other factor un-related to the seller.
- Often sellers are wary of an E2 Visa buyer because of the timing uncertainty caused by the visa application process.
- If you are determined to buy an existing business, exploring a franchise re-sale could be a great option, because you would get to do due diligence with existing franchisees and you would benefit from franchisor support as a new owner.
Start your own business from scratch
- This is by far the riskiest option – the US is a highly competitive market and its hard to start from scratch, particularly if you factor in that you will likely be starting in a market/location where you have limited contacts, are adapting to a new culture etc.
- When starting a business it can often be difficult to meet the investment criteria, unless you are starting a one that requires significant equipment or a premises that you secure before starting the business.
- Starting your own business can be a great option if you have prior business ownership experience and the business service/product that you plan to start is one you are familiar with.
Buy / Invest in a franchise
- Investing in a new franchise location/territory can be a great choice as a business to support an E-2 Visa application, particularly for an applicant with limited business ownership experience, given the training/support provided by the franchise.
- While the business will be a start up, if a franchise with a strong track-record is chosen, this should reduce the risk profile and also strengthen the visa application.
- As a franchise owner you would benefit from support of both the franchise company and other owners – the latter being a huge benefit of being part of a franchise system.
OUR FRANCHISE EXPLORATION PROCESS
If you are considering exploring franchise ownership to support an E-2 Visa application we would be delighted to speak with you. Click below to schedule an introductory 30-45 minute call to determine if it makes sense for us to work together.
IF WE BOTH AGREE THAT IT MAKES SENSE TO WORK TOGETHER, HERE IS THE PROCESS WE WILL WORK THROUGH
- You will start by completing our detailed confidential
- We will hold a one-hour call to review / debrief on the questionnaire to determine the key requirements for and build your ideal business model (based on your budget, your skills/experience/interests etc.).
- We will research options for E-2 Visa friendly franchises that fit your ideal business model and that have availability in your desired geographic market.
- We will review the results of our research with you and recommend that you pick 2-3 businesses to explore in detail.
- We will introduce you to the franchise companies (known as franchisors) selected and you will work through their due diligence processes. These typically comprise a series of calls/meetings with members of the franchisor teams. This will include:
- An introductory / get to know you call.
- Then 2-3 calls that will review aspects such as their business model, their marketing platforms and operations (start up, staffing etc.).
- The franchisor will share their Franchise Disclosure Document (FDD) and give you chance to review this / ask questions. Here you will find the break down of start up costs on the Item 7, and the income statements in the Item 19 if provided by the franchise in the FDD.
- You will speak with existing franchise owners (know as franchisees) – this is perhaps the most important part of the process and is known as “validation”.
- You will attend (in person or virtually) a “meet the team” or “discovery day” with the franchisors executive team.
- You should now be ready to make a decision as to whether the business is right for you – at this stage we can introduce you to an attorney that specializes in franchises to review the FDD and help you negotiate the Franchise Agreement with your chosen franchisor. Remember there is usually no changes made to the FDD because it is a disclosure and for the contract sometimes if you buy more than one territory you might be able to negotiate a little on the boundaries or a small discount on a big deal. Just remember you are in a system where they are not going to create dissension by doing for one Franchisee and having other ones find out about it, and being upset. So if you hope to negotiate make your expectations realistic.
- Sign the franchise agreement and pay the initial franchise fees.
- You should plan on a timeline of 10-12 weeks to work through the above process. As you do so, we will share various guidance and forms with questions, as well as referrals to top professionals in each area of the franchise exploration process, to help you navigate each stage of the process and once you are speaking with franchisors, we will hold periodic check-in calls with you.
- Aside from finding the right business, you will also need to establish a company, obtain a company Tax ID (known as an EIN) and open a company bank account – we have a referral partner who can help with this.
OUR FEES
Our services are provided to you at no charge. We receive a referral/placement fee from the franchisor if we introduce you, and you ultimately become a franchise owner. As we commit significant time and effort to you, we ask for the following in return:
- That you are fully engaged in the process – attending calls, doing the pre-work etc.
- That you engage appropriate resources to support you for the E-2 Visa application – specifically, we require you to have an immigration attorney and ideally a resource to support you with preparation of the business plan.
