Moving to the USA as a Franchisee

You want to move to the United States through investment. You're not a born entrepreneur. So a franchise feels reassuring — a proven format, a brand, an operations manual. Someone tells you what to do and how to do it.

That's true. In some cases, it's even the best choice. But there's a catch — and that catch is worth taking seriously.

What a franchise should actually give you

Before looking at brands, sectors, and numbers, ask yourself three simple questions about any franchise that interests you.

First, does the brand actually exist? The whole premise of a franchise is that customers come not because of you, but because they already know what they'll find. That recognition can be national, regional, or local — but it has to exist. If nobody knows the brand, you're not buying a franchise; you're buying a concept.

Second, is the support real? A serious franchisor provides solid initial training and ongoing assistance over time. They maintain a complete, up-to-date operations manual. Check it. Not the sales pitch — the manual, the contractual commitments, the testimonials from existing franchisees.

Third, is the know-how genuinely distinctive? There should be something — a method, technology, recipe, or proprietary process — that makes this format hard to replicate from scratch. If you can achieve the same result by building your own operation, save the franchise fees and do it.

The FDD — the document that says everything

In the United States, every franchise is required by law to provide prospective franchisees with a Franchise Disclosure Document — the FDD. Written in non-legal language, this document covers in 23 chapters the rights and obligations of both parties, the franchise's history, its performance record, and — crucially — every fee and charge the franchisor will bill to franchisees.

It's rare for US federal law to mandate this level of transparency. That's not an accident — abuse was widespread, and the FDD was the legislative response. It doesn't fix everything, but it's the central document. Some FDDs run several hundred pages.

The trade-off? A franchisor can ask for anything. If you sign, you comply. And often, you'll pay far more than you imagined.

A few concrete examples. Royalties first: a percentage of your revenue, billed monthly to daily — the franchisor may mandate their own POS system, access it in real time, and auto-debit your account. The base rate is typically 5–8% of revenue, but there may be additional contributions for administrative costs and brand development, with clauses allowing upward revision without notice. Add mandatory minimum local marketing spend, centralized purchasing requirements — or conversely, complete freedom on sourcing. And exclusive territory? It may exist — or not.

The franchisor's intent — the only question that matters

All of this mechanics is driven by one thing: the franchisor's intent. It shapes the tone, the clauses, the margins, the commitments. And there are two models.

The good model: build a brand and a network where franchisors and franchisees grow together. The franchisor prospers, and so does the franchisee — whose business gains value at resale. It's a long-term partnership.

The bad model: maximize initial fees, then royalties, then margins on centralized purchases, then find new franchisees and repeat. The model holds for a few years — long enough to extract, not long enough to last. Then it collapses.

Reality is rarely this black-and-white, and the intent of a young franchise is hard to read. But it's absolutely decisive. For newer franchises, meet the founders. Probe their ethics, their long-term vision, their relationship with existing franchisees.

A few warning signs from field experience:

• A franchisor who promises to help you find customers. With very rare exceptions, this is false. They're selling you a brand — they don't prospect on your behalf.
• A clause in the FDD limiting warranty or support based on the franchise's financial condition. Immediate red flag.
• A franchisor who doesn't scrutinize your profile, your skills, your likelihood of success. A good franchisor screens its candidates. If they'll take anyone, be wary.

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Franchise and the E-2 visa — what to check

If your goal is an E-2 visa, a franchise can be an excellent vehicle — provided you verify two specific points.

The first is financial. The E-2 visa requires a substantial investment, generally considered from around $100,000. On this point, franchises typically aren't a problem: the total projected outlay — entry fees, fit-out, inventory, working capital — often exceeds this threshold comfortably. The FDD provides a full cost estimate. Read it carefully.

The second point is employment. The E-2 visa requires net job creation — excluding yourself and your immediate family. Some franchise formats are designed to run solo, from an office or home. These won't pass the consulate review. As a general rule, retail and food service franchises are E-2 compatible. Solo home-service or B2B consulting formats need to be pre-checked with your immigration attorney.

Which sector to choose?

The first criterion is almost too obvious to state, and yet: choose a sector where you'll enjoy the work. This franchise will occupy most of your daily life, for years.

Also consider your English level. In a French-style café, an accent can be part of the charm. In a dog training franchise, you'll have long, technical conversations — with the dogs' owners. Very different linguistic demands.

Finally, the B2C (retail customers) vs. B2B (professional clients) distinction is structural: it shapes your rhythm, sales cycles, client relationships, and cash flow. Choose with eyes open.

Who should guide you?

I speak freely on this topic because I've chosen not to work with franchises. What I observe from the outside feels worth sharing.

There are two models of franchise advisory services.

The first, representing roughly 90% of the market: the consultant is paid by the franchisor — between 12 and 18% of a base that ranges from initial fees alone to all pre-opening invoices. That's $4,000 to $15,000 in commission, depending on the case. This service is presented to you as free. Ask yourself: will this consultant recommend what's best for you, or what pays them most?

The second model: you pay for the service yourself. You remain the client. Find the franchises that interest you on your own. Ask your consultant for market analysis, franchise history, a critical reading of the FDD — on a case-by-case basis. It will cost you between $2,000 and $5,000. That's the price of avoiding very unpleasant surprises.

A note on large national or international franchises: walk past them. They're generally not accessible to non-permanent residents, require upward of $1 million in prior investment, and often require you to already own one or more units.

A note on licenses: some offer use of a brand under license rather than a true franchise structure. Setting up a real franchise is expensive — in time, energy, and money. A license costs almost nothing to issue. Unless the brand is genuinely established or backed by registered patents, you're buying air.

Becoming a franchisee is neither a guarantee nor a trap by nature. It can be an excellent path — or a very painful mistake. Everything comes down to one question: does the franchisor see you as a partner, or as a target?

Before deciding, study several franchises side by side. And look at independently owned businesses available in the same sectors — sometimes that's where the best opportunity is.