A franchise can support an E-2 Treaty Investor visa case on less than $100,000, because no law or policy sets a minimum dollar amount. What counts is whether your investment is substantial in relationship to the total cost of the business. Your share of the full startup cost matters more than the size of your cash pile.
Putting your savings into a franchise is a big, scary step. Many people stop at the franchise fee and call it their budget. This guide shows why that number is too small, and tests two made-up budgets so you can see the math.
Table of Contents
Key Takeaways
- No fixed minimum: USCIS does not set a dollar floor for the E-2. Less than $100,000 is not an automatic no.
- Item 7 is your real cost: the franchise fee in Item 5 is only part of the total in the franchise disclosure document.
- Share beats size: a smaller business with most of its cost funded by you reads stronger than a bigger one with a thin share.
- Percentages here are planning examples: USCIS publishes no percentage threshold, and no franchise or price point guarantees an outcome.
- Money must be at risk and the business must not be marginal: the percentage alone never decides a case.
- Visa fee: the State Department lists a $315 visa application fee for E visas (travel.state.gov, checked October 2026). Some nationalities also pay a visa issuance fee based on reciprocity, so check the reciprocity table for your country (travel.state.gov, checked October 2026).
Can a franchise under $100,000 support an E-2 case?
Yes, it can, if the investment is substantial compared with the total cost and the business meets the other E-2 tests. USCIS says a substantial amount is “substantial in relationship to the total cost” of buying an established business or starting a new one.
The federal rule adds that your money must be at risk, meaning you could lose part or all of it if the business fails. It must also be irrevocably committed, so you cannot pull it back (8 CFR 214.2(e)(12)).
Your passport must come from a treaty country, and you must be coming to develop and direct the business. Check your nationality first with our E-2 treaty countries guide or the E-2 investor visa overview.
We already cover the general rule in the E-2 investment amount guide and the guide to E-2 with less than $150,000. This article adds one thing: a worked, franchise-style cost build, side by side.
Why is the franchise fee not your total cost?
The franchise fee is only one line of the total you must put into the business.
The Federal Trade Commission (FTC) Franchise Rule makes the franchisor show two numbers in its disclosure document: Item 5 lists the initial fees paid to the franchisor or its affiliates, and Item 7 is a table titled “Your Estimated Initial Investment” (16 CFR 436.5(e) and (g)).
Item 7 also includes equipment, fixtures, remodeling, opening inventory, deposits, licenses, and an “additional funds” line for the initial period. The rule says a reasonable initial period is at least three months or a reasonable period for the industry (FTC, 16 CFR 436.5). That working capital belongs in your cost number.
Read the full picture in our E-2 franchise visa page. Then compare the franchise path with a startup in the franchise or startup guide.
How do you build your total cost number?
Add up every line of Item 7 plus your own extra costs, then divide the money you have committed by that total. The five steps below show how.
- Step 1: Get the Franchise Disclosure Document and find Item 7. The franchisor must give it to you at least 14 calendar days before you sign a binding agreement or pay anything (FTC, 16 CFR 436.2).
- Step 2: Copy every line of the Item 7 table, including the “additional funds” line. Use the range the franchisor gives and pick the high end for your site.
- Step 3: Add costs that are specific to you, such as lease deposits and permits, if they are not already in the table. Keep written quotes for each one.
- Step 4: Write down the amount you will actually commit and put at risk. Count only money that is spent or irrevocably committed.
- Step 5: Divide your committed amount by the total cost. This is your share, and you can test it in the E-2 substantiality calculator.
What do two worked budgets look like?
Budget A puts $78,000 into a $90,000 business, a share of about 87%. Budget B puts $95,000 into a $210,000 business, a share of about 45%.
Both budgets below are invented for teaching. They are not real franchises, and they are not a prediction of any decision. USCIS publishes no percentage threshold, so the share is a way to see the picture and nothing more.
The State Department calls this an “inverted sliding scale.” The lower the cost of the business, the higher the share you need, and it says there are no bright line percentages (9 FAM 402.9-6(D)).
| Item | Budget A | Budget B |
|---|---|---|
| Your committed funds | $78,000 | $95,000 |
| Total cost (Item 7 high end plus your own costs) | $90,000 | $210,000 |
| Your share of the total cost | About 87% | About 45% |
| Where the rest comes from | $12,000 of working capital kept in your own bank account, not yet committed | $115,000 from a bank loan plus a loan from a relative |
| Main question an officer asks | Can this small business grow past supporting one family? | Is the loan really at risk, and is $95,000 a real commitment against $210,000? |
Budget A passes the share test easily, so its weak point is the marginality test. USCIS describes a marginal enterprise as one without the present or future capacity to generate more than enough income to provide a minimal living for you and your family.
