IN THIS GUIDE · Know which franchise payments are at risk, which are refundable and whether the buyer can lawfully operate the trade in the state
Start with the E-2 eligibility and application overview
Sort the payments by what happens if the visa is refused
An initial franchise fee that has been paid and is nonrefundable is committed and at risk, and consular practice generally counts it toward the investment. Equipment, the van, signage, initial inventory and software actually bought and paid for count. A refundable deposit does not, and neither does working capital sitting in the buyer's own account. Financing supplied by the franchisor or a lender counts only if the buyer is personally liable and the loan is not secured on the franchise's own assets. Ask the franchisor for a written schedule of every required payment with its refund terms, and keep the bank record of each payment.
Prove the franchise will be more than a living
A start-up franchise has no history, so marginality is shown by projection. The franchise disclosure document's financial performance representations, if any, the territory data supplied by the franchisor, and a five-year projection of revenue, expenses, owner compensation and credible hiring are relevant evidence. The legal question is whether the enterprise presently or within five years can generate more than a minimal living for the investor's family or make a significant economic contribution; an owner-only business is not automatically marginal. Substantiality is measured against the total cost of establishing this franchise; paying the fee and buying the equipment in full normally meets it.
Resolve the trade licence before the interview
Contractor licensing is state-specific. Ask the relevant state board whether the buyer's Québec certification is recognized, whether the buyer can sit the examination, whether a licensed employee can serve as qualifier and what the franchise agreement requires. An enterprise that cannot lawfully perform its trade is not a real operating business, and the officer may ask how the buyer will direct work he cannot legally do. The business plan should answer.
Apply at the consulate and plan the family
Canadian citizens obtain E-2 through a U.S. consulate, not at the port of entry, or by change of status through Form I-129 if already in the United States in another status. The E-2 spouse may work incident to status; children may study only. E-2 has no direct route to permanent residence and the enterprise must continue to qualify at each renewal.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.