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Hypothetical example: a Cantley couple, both Canadian citizens, have signed a franchise agreement for a small fitness studio in a U.S. suburb and expect to spend about US$310,000 between the franchise fee, fit-out, equipment and opening reserve. For E-2 the question is which of those dollars will be treated as invested by the interview date. The franchise fee paid, the lease signed and the equipment ordered count; a reserve sitting untouched in a Canadian account does not. The franchisor’s controls also have to be reconciled with the requirement that the investors develop and direct the business. Hypothetical example: a commercial-kitchen installer can pay a supplier in full, but the supplier offers a broad refund if the visa is refused. The investors must decide whether to use an escrow arrangement with clear release terms or accept a commitment that genuinely exposes funds to loss. The signed contract and its cancellation clause settle the point. They should not count the same cash both as an untouched reserve and as money already invested.
Sort the budget into committed and uncommitted
Consular guidance treats capital as invested when it has been spent or irrevocably committed to the enterprise, and it looks for the investor to have placed the funds at risk of loss. The paid franchise fee, the lease with its security deposit, signed contracts for fit-out with deposits paid, purchase orders for equipment and the opening marketing spend are all committed. Working capital transferred into the U.S. business account and earmarked for wages is generally treated more cautiously than money already spent, and funds still in Canada are not invested at all. Present a schedule of the US$310,000 showing the status of each line with its supporting document.
Measure substantiality against the franchise’s real cost
Substantiality is proportional to the total cost of establishing the particular enterprise. A franchisor’s disclosure document usually states the estimated initial investment range for a studio, and that published figure is a natural benchmark. If the couple has committed US$260,000 of a US$310,000 total by the interview, the proportion is high and the investment substantial. Ask the franchisor for the disclosure document, the item-by-item estimate, and written confirmation of amounts received, because those papers give the officer an independent measure. Funds should be traced from the couple’s savings or the sale of a Canadian asset to each payment.
Reconcile the franchisor’s rules with develop-and-direct
Franchise agreements impose brand standards, approved suppliers and operating manuals, which can look like someone else controlling the business. The requirement is that the investor develop and direct the enterprise, which ownership of the franchisee entity and day-to-day management satisfy; brand standards do not remove that authority. Have the operating agreement name one spouse as the E-2 principal holding at least 50% and managing the studio, with the other spouse as an E-2 dependant who is employment-authorized incident to status. Show a hiring plan for instructors and front-desk staff so the studio is more than a living for the couple. E-2 carries no direct path to permanent residence.
Use a line-by-line investment ledger that marks each amount as paid, irrevocably committed, refundable, or still available. The decision is whether the current record supports an interview now or whether another binding transaction is needed first. Attach the bank proof and contract to every line. A forecast of future spending may explain the plan, but it does not replace proof that the investor’s own capital is already exposed.
What else is on your mind?
Is there one minimum investment that guarantees E-2 eligibility?Is holding money or owning an asset enough for E-2?Editorial source review: 2026-09-07. General preparation guidance, not an individual assessment.