E-2 or EB-5? How a franchise investment fits a move to the United States

Two routes that ask different things

Both routes can involve a franchise, but they are built for different investors. The E-2 treaty investor classification is a temporary status for nationals of treaty countries who put a substantial amount of capital at risk in a real U.S. business they develop and direct, with no fixed minimum and renewable stays. EB-5 is a path to permanent residence that, according to USCIS, requires an investment of $1,050,000, or $800,000 in a targeted employment area, for petitions filed on or after March 15, 2022, plus full-time positions for at least 10 qualifying employees. Which one fits depends on your nationality, your capital and your long-term goals, and that decision belongs with a licensed immigration attorney.

I am Avinash Nichkawde, founder and Group CEO of AN Global Group Holdings, with our head office in the Dallas area. Under our Go Global brand we work with business owners and families who want to relocate through business investment, often through franchising. This guide is general information about the business side of the decision. It is not legal advice, and nothing in it replaces the advice of an immigration attorney.

Who does what: the business side and the legal side

Go Global acts as a consulting and coordination partner and does not provide legal services. Licensed immigration attorneys handle all legal and immigration work: eligibility, the petition, the evidence and the filings. Our role is the business itself, and on a business-investment route the business is the foundation the whole application stands on.

In practice we help choose a franchise or business that fits the investor and the likely route, build the budget and the business plan, coordinate the entity setup and the move of funds with your professionals, and manage the project so the business and the legal timelines line up. I have seen families lose months because the business was chosen first and the immigration question was asked second. The two need to be worked on together from the start.

How the E-2 treaty investor route works with a franchise

USCIS describes the E-2 classification as allowing a national of a treaty country to be admitted to the United States to invest a substantial amount of capital in a bona fide U.S. enterprise. The capital must be at risk, meaning it could be partly or totally lost if the business fails. The enterprise may not be marginal: it must be able to generate more than a minimal living for the investor and family, though USCIS notes a new business may have up to five years to reach that point.

The investor must be coming to develop and direct the business, which USCIS says is shown by at least 50 percent ownership or operational control through a managerial position or similar arrangement. E-2 holders must maintain an intention to depart when their status ends. USCIS allows a maximum initial stay of two years, with extensions in increments of up to two years and no limit on the number of extensions. Spouses and unmarried children under 21 may qualify as dependents, and USCIS says spouses in valid E-2 status are employment authorized incident to that status.

In my experience a franchise can make the business case easier to document. The franchisor's disclosure document sets out the expected initial investment, the system has a track record, and training and support are defined. None of that guarantees approval; it simply gives the attorney a clearer business to present.

How EB-5 is different

EB-5 is an immigrant investor program that leads toward permanent residence rather than a renewable temporary status. The capital requirement is far higher, and USCIS says future adjustments will be tied to inflation, with the first adjustment effective for petitions filed on or after January 1, 2027. The job requirement is the second major difference: the investment must create full-time positions for at least 10 qualifying employees.

That job test changes how a franchise fits. A small unit with a handful of staff will not meet it on its own, so investors exploring EB-5 with a franchise usually look at larger formats or plans for several units, and the business plan has to show how the positions will be created and sustained. Whether a particular structure qualifies is a legal question for your attorney; whether the business can genuinely support that many full-time jobs is a business question we help you answer honestly.

Because the amounts and rules can change, treat any figure you read, including the ones in this guide, as a starting point to confirm with your attorney against the current USCIS guidance at the time you file. The date your petition is filed can determine which amounts apply.

Side by side: the differences that drive the choice

These are the points I ask investors to discuss with their attorney first, because they usually decide the route before any brand is chosen. The details of each come from USCIS, and your attorney will apply them to your situation.

• Nationality: E-2 requires citizenship of a treaty country; check the State Department's treaty country list first
• Capital: E-2 has no fixed minimum but must be substantial and at risk; EB-5 sets defined minimums
• Jobs: EB-5 requires full-time positions for at least 10 qualifying employees
• Status: E-2 is temporary and renewable; EB-5 leads toward permanent residence
• Role: E-2 investors must develop and direct the business
• Family: E-2 spouses and children under 21 may qualify as dependents

Choosing a franchise when your status depends on it

When a visa depends on the business, the usual franchise questions become sharper. The business must be real and operating, not a plan on paper, and it must be able to support your family. That favors concepts you can genuinely run and grow, not ones marketed as passive income. Look at your own skills, the hours the concept demands, and whether the unit can produce more than a minimal living within a realistic time.

Capital planning matters more too. Beyond the investment itself, you need money to live on while the business grows, and the move itself has costs. My guide to the full cost of buying a franchise walks through every layer, and the questions to ask a franchisor and its owners applies just as much to an investor buying from abroad.

A franchise is not the only option. Some investors buy an established independent business instead, which comes with existing customers and staff. If that interests you, a business broker who values and sells established companies can show you what is available, and we can help you compare the two paths.

Mistakes I see from investors abroad

Most of these come from treating the move and the business as separate projects. They are one project with two sets of rules.

• Choosing a brand before an attorney has confirmed which route you are eligible for
• Picking a concept marketed as hands-off when the route requires you to develop and direct it
• Committing every dollar to the investment and leaving nothing to live on
• Signing a franchise agreement without a franchise attorney's review
• Relying on earnings figures that do not appear in the franchisor's Item 19
• Moving funds before the attorney and your financial advisors agree on how to document them

Papers to gather before your attorney meeting

Attorneys work faster, and usually more accurately, when the investor arrives organized. The list below is not a legal checklist; your attorney will give you one. It is the business material we find investors are asked for again and again, and gathering it early saves weeks.

Pay particular attention to the source of your funds. Investors are often surprised by how far back the paper trail has to go, especially when the money comes from the sale of a property or a business at home. Start collecting those records now, while the people who can provide them are easy to reach, and keep everything in one place with clear labels.

• Your passport and proof of citizenship for every country you hold it in
• A record of your business and management experience
• Statements showing where your investment funds came from and how they were accumulated
• Any franchise disclosure documents or business listings you are already considering
• A rough budget for the move, the investment and two years of living costs
• A list of family members who would relocate with you

Canada, Australia and the U.K. follow their own rules

Go Global also works with investors relocating to Canada, Australia and the U.K. Each country has its own business and investor routes with their own requirements, and none of them maps neatly onto E-2 or EB-5. The approach is the same, though: a licensed migration attorney in the destination country advises on eligibility and handles the legal process, while we manage the business side, from choosing the investment to setting it up.

Families sometimes compare destinations before choosing one. That comparison is worth doing carefully, with advice from attorneys in each country, because the right destination depends on your business, your family and your long-term plans as much as on the program.

How a first conversation with us works

We start with a confidential consultation, in person at our Dallas office or by video from wherever you are. We talk about your goals, your family, your business background, the capital you can invest and the countries you are considering. If you already have an immigration attorney, we coordinate with them; if not, we direct you to licensed attorneys for the legal assessment.

Once the likely route is clear, we shortlist franchises or businesses that fit both the route and you, build the plan, and manage the project through to opening. When the business is running, what to do in the first year after signing covers the operating side that keeps it healthy, and a healthy business is what every renewal and next step depends on.

Questions people ask me