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APPLICATION ANSWERS · E-2 FIELD GUIDE

Does franchisor approval establish E-2 eligibility in Sarnia?

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THE DIRECT ANSWER

No. It may establish a commercial condition, but the treaty-investor requirements must be assessed independently on the actual business and applicant facts.

Identify what the approval does and does not grant

Read the approved transfer, territory and management terms. Explain the investor’s ownership, nationality, committed capital and ability to develop and direct. The enterprise must also be real, operating and non-marginal. A franchise brand’s screening process is not a substitute for the government’s immigration decision.

Hypothetical example: A treaty-national optometrist plans to purchase a mobile eyewear business, but the proposed seller will retain control over all customer contracts for the first year. The first review should identify nationality, actual ownership, funds already committed, contractual conditions, operating authority, and the forecast for a real non-marginal enterprise. Produce a deal chart that distinguishes money paid, money held under defined conditions, and future spending. The investor must be able to develop and direct the business; a purchase agreement does not answer that question by itself. Do not assume professional credentials or a popular brand establish E-2 eligibility. Sequence ownership and funding analysis before describing management rights. The central decision is whether the agreement leaves the investor with a real enterprise and meaningful direction, rather than a conditional future opportunity.

The controlling records are the signed ownership and operating documents, not a pitch deck. If those records reserve the decisive authority to someone else, revisit the transaction before representing the investor as its director.