Key Takeaways
- H-1B holders can legally own franchises as passive investors without violating H-1B employment restrictions — consult your immigration attorney for your specific situation
- The SBA's March 2026 rule eliminated H-1B applicants from SBA franchise loans, closing the primary funding avenue for immigrant franchise buyers
- Bankable funds H-1B franchise acquisitions up to $5M based on projected and historical franchise unit revenue
- Initial franchise investment ranges from $75,000 (simple QSR) to $2M+ (hotel or healthcare franchise)
- Start your Bankability Assessment in 30 seconds — no SSN upload needed
Franchise ownership represents a uniquely attractive business structure for H-1B visa holders. The franchise model provides a proven operating system, brand recognition, training infrastructure, and supplier relationships that reduce the operational risk of business ownership. More importantly, from an H-1B perspective, owning a franchise as a passive investor — with a hired manager operating the day-to-day business — generally does not constitute "unauthorized employment" under USCIS guidance. Many immigration attorneys specifically recommend franchise ownership as an H-1B-compatible investment vehicle.
The practical challenge has always been capital. A Dunkin' franchise requires $95,700 to $1.6M in total investment. A Subway unit requires $229,050 to $522,300. A Hampton Inn hotel franchise can require $7M to $22M in total development cost. Even the "accessible" QSR franchises require $200,000 to $500,000 in liquid capital that most H-1B holders have but cannot readily borrow against — because until recently, the SBA was their primary franchise financing vehicle. Effective March 1, 2026, that door closed entirely for H-1B holders.
H-1B Franchise Funding Through Bankable
- Franchise Acquisition Capital: First-unit or multi-unit acquisition funding based on the franchisor's historical AUV (average unit volume) and your capital contribution.
- Conversion Franchise Funding: Converting an existing business to a franchise brand often requires substantial remodeling capital. Bankable funds the conversion gap.
- Multi-Unit Expansion: Established H-1B franchisees expanding to unit 2, 3, or 5 use Bankable for the capital the SBA no longer provides.
- Working Capital During Ramp: New franchise units take 6 to 18 months to reach AUV. Bankable funds the operating capital during the ramp period.
- Equipment and Buildout: Franchise-required equipment, POS systems, and facility buildout to brand standards often exceed the franchisor's estimate.
For H-1B holders specifically exploring franchise acquisition as a use case, also review our H-1B buying a franchise guide. For the broader SBA alternative landscape, see our SBA alternative guide. General franchise industry funding details are available at our restaurant industry page (many franchises are food service).
| Funding Source | H-1B Eligible? | Max Amount | Speed |
|---|---|---|---|
| SBA 7(a) — March 2026+ | No — US citizens only | $5M | 30–90 days |
| Traditional Banks | Rarely | Varies | 3–6 weeks |
| Bankable | Always yes | $5M | 48 hours |
Frequently Asked Questions
Generally yes, as a passive investor with a hired manager operating the business. USCIS does not typically consider passive business ownership unauthorized employment. Consult your immigration attorney for your specific structure.
Yes. The SBA now requires 100% US citizen ownership. H-1B franchise buyers are excluded from SBA 7(a) franchise loans, which were previously the most common funding source.
Up to $5M in tranche-based funding. Initial tranches for franchise acquisitions are typically sized based on the target unit's projected AUV and required liquid capital contribution.
Any FDD-registered franchise in sectors including food service, retail, automotive, healthcare, fitness, and hotels. We analyze unit economics from the Franchise Disclosure Document.
For existing franchisees, we analyze actual unit-level revenue and AUV. For new franchise purchases, we review the FDD Item 19 financial performance representations and comparable unit economics.
QSR food service franchises: $200K to $600K total investment. Retail service franchises: $100K to $400K. Hotel and lodging franchises: $3M to $20M+. Bankable funds the gap between your liquid capital and the required total investment.
Yes. Bankable funds solely on business revenue. A US citizen co-borrower is not required.
48-hour decision. Complete the Bankability Assessment at /bankability-score/ in 30 seconds for a preliminary range.
No. Bankable has zero residency requirements. H-1B holders, L-1 visa holders, O-1 visa holders, and other work visa categories all qualify for funding assessment based on business revenue alone.
Effective March 1, 2026, the SBA amended its rules to require 100% US citizen or national ownership for all 7(a) and 504 loan programs. H-1B holders are no longer eligible for any SBA-backed financing.