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APPLICATION ANSWERS · E-2 FIELD GUIDE

Does buying a recognized franchise make an E-2 application eligible?

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THE DIRECT ANSWER

No. The franchise still must satisfy the relevant enterprise, investment, nationality, control and other requirements. Brand recognition can be business context but does not establish a substantial at-risk investment or nonmarginality for the applicant’s specific venture. Review the actual agreement and operating plan.

Separate the brand’s history from your business

Identify what the individual location will own, spend, earn and manage. A franchisor’s general success figures do not prove the applicant’s projections. Describe support and restrictions accurately, including the investor’s real authority to develop and direct the enterprise.

First review produces a transaction map showing ownership, treaty nationality, money already committed, and the investor's planned authority after opening. The records that settle those points are the purchase agreement, ownership documents, bank trail, and operating plan. Sequence the work by testing the enterprise and control before irreversible payments are made.

Problems arise when franchise branding is used as a substitute for proving the investor's own business facts. Hypothetical example: A Canadian ceramicist proposes to buy a U.S. kiln-repair business under a franchise banner.

The review should identify who owns the local entity, what commitments cannot be withdrawn, and whether the ceramicist will direct the repair operation rather than merely hold an interest.