IN THIS GUIDE · Trace the home-equity loan through to the franchise purchase
Start with the E-2 eligibility and application overview
Read the loan agreement for what secures it
The treaty-investor rules treat debt differently according to its security. Funds borrowed against the investor's personal assets, such as a mortgage or line of credit on their own home, are personal funds at risk and count toward the investment. Indebtedness secured by the assets of the enterprise itself is not counted, because the investor risks nothing personal if the business fails. The home-equity agreement from the couple's Canadian lender should therefore be in the file, showing the property as security and the couple as borrowers. If the seller instead proposes vendor financing secured by the shop's equipment and receivables, that portion does not count, and the substantiality analysis must be run on the personal funds alone.
Confirm the franchise leaves the investor in control
E-2 requires that the investor develop and direct the enterprise, ordinarily shown by at least fifty percent ownership or operational control. A franchise agreement grants the franchisor rights over branding, suppliers, pricing bands and quality standards, which is normal and does not defeat the requirement, but the couple should read for clauses that give the franchisor authority over hiring, day-to-day management or the sale of the business. The purchase should be of the operating entity or its assets, in the couple's names or their wholly owned US company, so that the ownership record shows Canadian nationals holding the enterprise. Treaty nationality flows from the owners' citizenship, which their passports establish.
Commit the funds so they are genuinely at risk
Money in a Canadian account, even borrowed money already drawn, is not yet invested. The standard is irrevocable commitment: the funds must be spent or placed beyond the couple's control in a way that ties them to the business. For a purchase, the common structure is a signed agreement with a deposit paid and the balance held in escrow, released to the seller when the visa issues. The escrow agreement should be in the file, with the deposit receipt and the drawdown record from the home-equity line, so that an officer can follow each dollar from the Canadian house to the Idaho shop. Substantiality is then assessed by comparing the invested amount with the cost of the business, which the purchase agreement and valuation establish.
Show the shop supports more than the family
The enterprise must not be marginal. An existing repair shop with employees and a trading history makes this simpler than a startup: financial statements for the last few years, the payroll register and the franchisor's disclosure document demonstrate capacity to generate income well beyond the couple's living expenses. If the shop currently supports only the seller's household, the plan should show how the couple will grow it, with realistic projections and the hiring they intend. Canadian citizens must obtain E-2 visas at a US consulate before entry; there is no port-of-entry E-2 application. The spouse, once in E-2 status, is employment-authorized incident to status, and E-2 offers no direct path to permanent residence.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.