Key Takeaways
- Non-citizens can fund franchise purchases through private lenders, not just SBA (now blocked for them)
- Many major franchise brands (McDonald's, Subway, 7-Eleven) offer internal financing programs accessible to non-citizens
- Revenue-based funding from Bankable Funds can cover franchise fees, initial inventory, and working capital
- E-2 visa holders have been a major franchise buyer segment — the E-2/franchise combination is well-established
- The typical total investment for a mid-tier franchise is $150K–$750K — well within Bankable's funding range
Non-citizens can fund franchise purchases and operations through multiple private channels. Franchise businesses are uniquely well-suited for non-citizen entrepreneurs because franchises come with established business systems, brand recognition, and proven revenue models — all factors that help qualify for private funding without requiring a US-citizen background.
Franchise Funding Sources for Non-Citizens
1. Revenue-Based Funding (Bankable Funds)
For franchises with at least 6 months of operating history and $15,000+ in monthly revenue, Bankable Funds provides $25,000–$750,000 in revenue-based funding. This works well for:
- Adding a second location after the first is generating stable revenue
- Covering working capital during a franchise ramp-up
- Equipment purchases and leasehold improvements beyond the initial investment
- Refinancing higher-cost startup capital
2. Franchisor-Sponsored Financing
Many major franchise systems have established financing relationships that do not require citizenship:
- Some franchisors have direct lending programs for qualified franchisees
- Franchise development funds lend to existing operators expanding to new units
- Relationships with specific banks that have experience with non-citizen franchisees
3. Equipment Financing
Franchise purchases often include significant equipment (restaurant equipment, salon chairs, vehicle fleets). Equipment financing is highly accessible to non-citizens with self-collateralizing assets.
4. E-2 Visa and Franchise Combination
The E-2 treaty investor visa and franchise ownership have a long, established relationship. Buying a franchise can satisfy E-2 investment requirements, and E-2 holders are authorized to run and direct their franchise business. Bankable Funds has funded numerous E-2 franchise owners across industries.
The Franchise Funding Timeline for Non-Citizens
- Select a franchise and sign a franchise disclosure document (FDD)
- Complete the franchise agreement and pay the initial franchise fee
- Use revenue-based funding or equipment financing for fit-out and equipment
- Begin operations and build 6+ months of revenue history
- Apply for additional growth funding through Bankable Funds as the franchise proves revenue
Frequently Asked Questions
Yes. H-1B holders can own a franchise as a passive investment — owning shares in the franchise entity without personally managing it. However, H-1B holders cannot perform day-to-day management work without proper sponsorship arrangements. A manager hired by the franchise can run operations.
Franchise types with quick revenue ramp-ups and strong cash flow metrics work best: quick-service restaurants (QSR), fitness studios, service-based franchises (cleaning, staffing), and convenience stores. These have predictable revenue models that qualify well for revenue-based funding within 6–12 months of opening.
ROBS is a legitimate structure where retirement funds are used to fund a business without early withdrawal penalties. ROBS is technically available to non-citizens, but the retirement account holder must have US-based qualifying retirement accounts (401k, IRA). This is less common for recent immigrants but may apply to long-term US residents with established retirement accounts.
Yes significantly. SBA franchise loans (available through the SBA franchise registry) were a major funding source for non-citizen franchisees, particularly E-2 holders. The March 2026 citizenship requirement eliminated this option. Non-citizens must now use private funding, franchisor programs, or equity partners for franchise financing.
Pre-March 2026, SBA 7(a) franchise loans commonly ranged from $150,000 to $3,000,000. These are now unavailable to non-citizens. Bankable Funds' $25,000–$750,000 range covers the entry-level to mid-tier franchise segment well.
Buying a master franchise territory (the right to sub-franchise in a geographic area) is a larger investment ($500K–$5M+) that typically requires equity funding beyond what revenue-based lending provides. Private equity, family investment, and franchisor partner programs are more appropriate for master franchise acquisitions.
Most established franchise systems are focused on whether you have the capital, business skills, and commitment to operate successfully. While individual franchisors may have requirements, the major franchise systems have large non-citizen franchisee populations and established processes for working with immigrant entrepreneurs.
Strong factors for franchise funding: signed franchise agreement with established brand, proof of investment funds already committed, personal net worth statement, prior business experience, detailed business plan, and operating projections. The established franchise brand significantly de-risks the application versus an independent business start.