Franchising: A Pathway to Business Ownership for Immigrants in America

Immigrant Heritage Month in June highlights the important contributions of immigrants. For those wanting to build their lives in the United States, franchising offers a proven method to own and grow a business. I have worked closely with immigrant entrepreneurs and seen how franchising can help create a secure future.

Franchising has a clear structure, proven business models, and strong support systems. These features are ideal for immigrants facing the challenges of a new country. Starting a business in an unknown environment can be tough, but franchises provide a clear plan that eases the uncertainty.

Advantages of franchising for immigrant entrepreneurs

Many immigrants possess a strong work ethic, valuable community connections, and a desire to create lasting legacies. Franchising suits these values by offering a system built for success. Franchisors provide training, established branding, marketing plans, and ongoing help, which is crucial for those learning English or adapting to American business practices.

A major benefit of franchising is that it allows individuals to run a business for themselves, but not alone. This is vital for immigrant entrepreneurs who may lack local networks or prior experience in U.S. business.

The E-2 visa: A legal route to ownership through franchising

The E-2 visa is a legal option for immigrants from treaty countries who want to invest in and manage a U.S. business. This makes franchising a strong choice. Approval rates for the E-2 visa have remained high, even during changing immigration policies. Franchises can be seen in a more favorable light by consulates due to a proven history in the market and regional/national footprints.

During President Trump's first term, E-2 visa approval rates stayed between 87 and 90 percent, despite broader restrictions. This trend continues today. The E-2 visa fits well with franchise investments, as franchises offer a business model that often meets the requirements for active involvement and substantial investment.

Key considerations for immigrants exploring franchising

• Understanding investment requirements: The E-2 visa doesn’t set a minimum investment amount, but it must be “substantial” for the business type. The investment must be proportional to the type of business. Often, it is at least an initial investment of $100,000. Consulting an immigration attorney is vital for a strong application.
• Choosing the right franchise: Look for franchise brands that support E-2 visa candidates and have a good track record of training and support. Evaluate the franchisor’s culture, community involvement, and history with first-time owners. Look for a franchise that matches well with your skill sets and has a good product and market fit in your preferred area.
• Leveraging the franchise network: The built-in community is a key advantage of franchising. Franchisees gain access to mentors, fellow owners, and support teams dedicated to their success. Seek advice and ask questions.
• Recognizing a shared experience: Many immigrants have started businesses through franchising. While their journeys vary, the shared experience of building a future in a new country creates a strong support network.

Franchising is more than just a business model; it's a pathway to opportunity, stability, and growth for immigrant entrepreneurs. It offers a chance to achieve the American dream while contributing to local communities.

Having guided many immigrant candidates toward franchise ownership, I can confirm that this path is accessible. Success is possible with the right support, the right franchise fit, the desire to take the first step, and the proper work ethic.

Felipe Martinez is director of franchise development for Estrella Insurance.