Key Takeaways
- E-2 franchise owners qualify for Bankable funding based on franchise system revenue — no green card required
- The March 1, 2026 SBA rule change eliminated SBA 7(a) access for all non-citizen franchisees — Bankable is the direct replacement
- Funding from $100K to $5M available for second units, renovations, and refranchising opportunities
- 7-Eleven, Subway, Kumon, McDonald’s, and all franchise systems are eligible
- Korean, Japanese, and Indian E-2 franchise operators are among the most active applicants
The franchise business model and the E-2 visa were practically designed for each other. USCIS adjudicators understand franchises: the franchise disclosure document (FDD) proves the investment is structured, the franchisor’s track record demonstrates viability, and the proven system satisfies the “at risk” requirement. South Korean investors have built entire franchise portfolios — 7-Eleven franchises in California and New York, Kumon learning centers across suburban America, Subway locations in high-traffic urban corridors — entirely on E-2 visa capital. Japanese investors operate franchise businesses from Japanese chains (Yoshinoya, Gyu-Kaku) and American brands alike.
When the SBA formally barred all non-US-citizen business owners on March 1, 2026, E-2 franchisees were among the hardest hit. The SBA 7(a) program had been one of the few viable lending options for franchise expansion — it specifically listed approved franchise systems and offered up to $5M for qualified franchisees. Overnight, that option evaporated for 60,000+ E-2 franchise operators. Bankable immediately became the primary structured alternative.
What E-2 Franchisees Use Bankable Capital For
The franchise system dictates much of the capital use: royalties run 4–12% of gross sales, marketing funds take another 2–4%, and most FDDs require franchisees to renovate or remodel every 7–10 years. These are predictable, unavoidable capital events. Bankable structures funding around the franchise system’s known requirements.
- Second unit acquisition: Buying a second or third franchise territory, often at reduced franchise fees for existing franchisees in good standing
- Required renovation and remodel: Franchisor-mandated refresh programs that must be completed within specified timeframes
- Equipment upgrade: Technology-mandated POS systems, kitchen equipment upgrades, or digital display installations required by the franchisor
- Refranchising opportunity: Acquiring an existing franchisee’s territory when they exit the system
- Working capital: Covering royalty payments and fixed costs during seasonal slow periods
The E-2 Franchise Multi-Unit Opportunity
Many E-2 franchise owners are operating single units but have the right of first refusal on additional territories. Expanding from one to two or three units is one of the clearest paths to both business growth and a stronger E-2 renewal case — a multi-unit franchise operation employs more workers, generates more revenue, and clearly demonstrates the business’s ongoing viability. Bankable has structured tranche funding specifically for E-2 franchisees moving from single to multi-unit operations.
Franchise Unit Acquisition
Fund the purchase of a second or third franchise territory based on your existing unit’s revenue history.
Apply Now →Renovation Financing
Cover required franchisor remodels and equipment upgrades without draining operating reserves.
Learn More →SBA Alternative
Since March 2026, E-2 franchise owners need a non-SBA solution. Bankable provides it.
Learn More →Frequently Asked Questions
Yes. The March 2026 SBA rule change bars non-citizens from SBA loans, but Bankable operates entirely outside the SBA program. E-2 franchisees qualify for Bankable funding based on franchise revenue — no green card required.
All franchise systems listed in the IFA directory are eligible. This includes 7-Eleven, Subway, McDonald’s, Kumon, Dunkin’, and hundreds of other systems.
Generally, expanding within the same franchise system strengthens your E-2 case by demonstrating business development. Adding a second unit creates more US employment and larger investment. Consult your immigration attorney about the entity structure for the second unit.
Second franchise units typically cost $200K–$800K depending on the system. Bankable funds up to $5M and can structure tranches for the specific unit acquisition cost.
48-hour preliminary decisions. Franchise businesses with clear POS revenue history typically fund within 5–7 business days.
We look for 6+ months of consistent franchise revenue. Most systems report via POS, which provides clean daily revenue documentation.
Yes. Required renovations are mandatory capital events that Bankable specifically accommodates. These can be structured as separate tranches from growth capital.
Yes. The funding goes to your franchise business entity (LLC or corporation). Personal guarantee may be required for larger amounts.
Yes. Bankable’s underwriters are familiar with franchise system economics including royalty rates, marketing fund contributions, and renewal requirements.
We look at your specific unit’s revenue history regardless of the overall system age. A newer franchise with strong unit economics still qualifies.