Franchise Swimming School - Territory Change After E2 Submission

Citizenship: Canada

Total Investment: $108,000 (approx.)

Total Working Capital: $12,000 (approx.)

Challenge:

Our client purchased a franchise offering premium swimming lessons for a specified territory, and submitted an E-2 visa application through a U.S. consulate abroad. The initial filing was based on this specific franchise territory designated by the franchisor, with the understanding that expansion into a second area would be possible later.

However, shortly after the application was submitted, the franchisor unexpectedly reassigned the territory. This sudden change raised immediate concerns about the integrity of the application, as E-2 visa approvals are closely tied to the details in the submitted business plan, location, and market analysis. At first glance, such a change could have potentially undermined the visa eligibility, since consular officers are highly sensitive to material differences between the submitted plan and the actual business operation.

Strategy:

Upon careful review, we determined that while the business territory had changed, the terms of the franchise agreement remained exactly the same. The rights, obligations, scope of services, investment amount, and business model did not change in any way, only the geographic area in which the business would operate. This distinction was crucial.

We advised our client to act quickly:

• Update operational documents, including permits and DBA registrations, to reflect the new territory.

• Revise the business narrative to highlight that the franchise structure, operations, and financial commitments had not changed, only the location.

• Emphasize the positive aspects of the new territory, such as a larger potential customer base, better local demographics, and stronger long-term growth potential.

We framed the situation as a franchisor-led adjustment that did not materially alter the underlying E-2 enterprise. By showing that the new territory offered improved business prospects without impacting the franchise’s legal or financial structure, we were able to demonstrate that the investment remained viable, substantial, and at risk, fully meeting E-2 visa requirements.

Results:

The E-2 visa was approved at the U.S. consulate in Toronto. What initially seemed like a significant obstacle was ultimately resolved by outlining the benefits of the change and updating all relevant documents to ensure it would not disrupt business operations. Because the franchise agreement’s core terms were unchanged and the investor’s actions were timely and well-documented, the consular officer accepted the explanation and approved the application.

This case demonstrates that perceived risks during the E-2 process can often be overcome with taking preemptive actions. When handled correctly, even unexpected business changes, like a territory reassignment, can be turned into opportunities rather than threats.

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To protect our clients' privacy, names of individuals and businesses have been omitted. In some cases, we may also alter or generalize certain details to further safeguard their confidentiality.