Key Takeaways
- E-1 Treaty Trader visa holders can purchase US franchise units with Bankable funding — no green card, no SBA eligibility required
- Franchise ownership can qualify as substantial treaty commerce when the franchise involves import/export of goods or services with your home country
- Bankable funds franchise acquisition costs including franchise fees, buildout, equipment, initial inventory, and working capital reserve
- Franchise brands with established AUV (average unit volume) data make underwriting faster — Bankable can often decide within 24 hours
- The SBA eliminated franchise funding access for E-1 holders in March 2026, making Bankable the primary institutional franchise funding option
Franchises appeal to E-1 Treaty Trader entrepreneurs for a practical reason: they eliminate many of the early-stage uncertainties that make business underwriting difficult. The brand is established, the operating system is documented, and the average unit economics are often publicly available. When you apply for Bankable franchise funding, you are not asking us to evaluate a concept — you are presenting a known business model with proven system-wide revenue. That makes decisions faster, terms more favorable, and approval rates higher.
Franchise Ownership and E-1 Treaty Commerce
Not every franchise purchase qualifies as E-1 treaty commerce — the visa requires that the enterprise engage in substantial trade principally between the US and the treaty country. However, many franchise models do create qualifying trade flows:
- Food franchises with treaty-country product sourcing: A Korean national operating a franchise that imports Korean food ingredients creates qualifying treaty trade
- Service franchises with treaty-country clients: A Japanese national operating a business services franchise that primarily serves Japanese companies in the US or their US subsidiaries qualifies
- Technology franchises: Franchise systems that use software, components, or intellectual property licensed from the treaty country may qualify
For franchises that don't create qualifying treaty trade, E-1 holders may consider whether the business can be structured alongside a separate treaty commerce activity, or whether a different visa category (E-2 investor visa, for instance) might be more appropriate. Consult your immigration attorney on the visa structure — Bankable funds either way.
Franchise Capital Needs: What Bankable Covers
| Expense Category | Typical Range | Bankable Coverage |
|---|---|---|
| Franchise fee | $20K – $100K | Yes |
| Buildout / leasehold improvements | $50K – $500K | Yes |
| Equipment and fixtures | $30K – $300K | Yes |
| Initial inventory | $10K – $100K | Yes |
| Working capital reserve (3 months) | $25K – $150K | Yes |
| Training travel and expenses | $5K – $30K | Yes |
How Bankable Underwrites Franchise Funding
Bankable uses the franchise system's average unit volume (AUV) as a benchmark for evaluating franchise funding requests. For established brands — those with 50+ units and published AUV data — we can often issue a conditional approval before a site is selected. For newer or regional franchise systems, we evaluate the Franchise Disclosure Document (FDD) and the specific unit economics for the intended market.
E-1 holders seeking franchise funding need to demonstrate: valid E-1 visa status and I-94, US SSN, business EIN for the franchise entity, executed franchise agreement or letter of intent from the franchisor, personal financial statement, and any operating history if you have owned other franchise units. A clean credit profile and evidence of sufficient personal equity for the down payment (typically 20-25% of total startup costs) round out the application. Start with your Bankability Score to see your franchise funding range before committing to a specific brand or location.
E-1 Franchise Holders Who Thrive With Bankable
The E-1 entrepreneurs who get the most value from Bankable's franchise funding typically fall into one of three categories: first-time US franchise buyers leveraging treaty networks to identify a location, experienced multi-unit operators expanding their portfolio, and investors from treaty countries like Canada, Mexico, Taiwan, and the Philippines who have identified underserved US markets where their cultural and language capabilities create a competitive advantage.
In all three cases, Bankable's 48-hour decision timeline means that franchise opportunities — which often have multiple competing buyers — can be secured before slower lenders finish their paperwork. Also see our guide on financing alternatives to SBA for franchise buyers for additional context on the current lending landscape.
Frequently Asked Questions
Yes. E-1 visa holders are legally permitted to own franchise businesses in the US. The franchise agreement does not impose citizenship requirements — only the SBA loan program did, which is now closed to E-1 holders. Bankable provides franchise funding without SBA backing or citizenship requirements.
It depends on the franchise model. Franchises that involve importing goods, technology, or intellectual property from the treaty country create qualifying trade. Service franchises that primarily serve businesses or clients in the treaty country also qualify. Your immigration attorney should confirm treaty commerce compliance for your specific franchise type before you finalize the purchase.
Total franchise startup costs range from $100K for service-based micro-franchises to $2M+ for full-service restaurant or retail franchises. The median for food service franchises runs $400K-$800K including all startup costs. Bankable can fund the entire startup package in one advance, including franchise fee, buildout, equipment, and working capital.
Since March 1, 2026, the SBA requires that 100% of business ownership be held by US citizens or nationals for all SBA loan programs. Because E-1 Treaty Trader status is a nonimmigrant classification, E-1 holders categorically do not meet this requirement. This eliminates SBA 7(a) franchise loans, SBA 504 loans, and SBA microloans for all E-1 entrepreneurs.
Bankable typically requires the borrower to contribute 20-25% of total startup costs from personal or business equity. For a $500,000 total franchise startup cost, this means contributing $100,000-$125,000 from your own capital. This demonstrates equity commitment and reduces the funding amount to a serviceable level.
Yes, for E-1 holders with sufficient revenue history or equity. Multi-unit franchise development agreements — where you commit to opening multiple units over a period of years — can be partially funded in the initial tranche with subsequent tranches as each unit reaches revenue targets. Bankable has funded multi-unit franchise portfolios up to $5M across multiple locations.
Most franchise agreements do not restrict the choice of lender for the initial funding. Some premium franchise systems (particularly large QSR brands) prefer approved lenders, but this is a franchisor preference, not a legal requirement. Bankable has funded franchises across dozens of major brands without franchisor lender approval requirements.
Revenue-based repayment means your monthly payment is calculated as a percentage of your franchise unit's monthly gross revenue. In months when sales are lower (typically during the ramp-up period after opening), payments are lower. As the unit hits its stride and approaches AUV targets, payments increase proportionally. This aligns repayment with the natural revenue trajectory of a new franchise unit.
Yes. Bankable funds both new franchise unit development and existing franchise unit acquisitions (resales). Resale units often have existing revenue, customer base, and staff — making underwriting more straightforward than a new unit buildout. Resale units with 12+ months of operating history typically qualify for higher funding amounts and more favorable terms.
Bankable funds franchise units across food service, retail, fitness and wellness, business services, cleaning and maintenance, childcare, and home services. We do not fund cannabis, adult entertainment, or speculative investment franchise models. For most mainstream franchise categories, Bankable can provide full startup capital in a single advance.