E-2 Treaty Investor Visa Approval — NJ Franchise Acquisition with Substantial Investment and Source of Funds Documentation

IMMIGRATION LAW · SONG LAW FIRM SUCCESS STORY

Client Profile

• Nationality: Republic of Korea (Korea is an E-2 treaty country).
• Self-employed businessperson in their 40s with 15+ years of Seoul-based F&B and retail experience.
• Education: bachelor's in business administration.
• US enterprise: acquired a well-known franchise unit in NJ (cafe/bakery category, 12 W-2 employees).
• Initial investment: approximately $180,000 (asset acquisition + working capital + build-out).

Case Background

After selling the Seoul business, the client relocated to the US and acquired an existing franchise unit in NJ. The E-2 treaty investor visa provides operator status while positioning the client for future expansion.

Legal Issues

E-2 is governed by 8 CFR §214.2(e) and the Foreign Affairs Manual (9 FAM 402.9). All of the following must be met:

• The applicant is a national of a treaty country (Korea qualifies).
• A substantial (non-marginal) investment is placed at risk in the US enterprise.
• The enterprise is real and operating (no shell entities).
• The applicant controls the investment (typically 50%+ ownership or operational control).
• The applicant directs and develops the enterprise (day-to-day management).

Substantial investment has no absolute dollar threshold; the proportionality test compares the applicant's investment to the total needed to establish the enterprise. For F&B and retail, investments in the $100,000-$200,000 range are commonly substantial. Source of funds – proving the legitimate origin of the invested capital – is often the decisive documentation.

Song Law Firm Strategy

Song Law Firm addressed the two most common refusal grounds: unclear source of funds, and a marginal enterprise finding.

• Source of funds: Seoul business sale contract, bank records for the sale proceeds, five years of personal tax returns, and SWIFT wire records for the transfer to the US.
• Business plan: five-year pro forma financials (revenue, payroll, profit projection) and a plan to add three additional employees, defeating a marginal finding.
• Investment breakdown: franchise buyout $120K + build-out $30K + three months of rent/utility/payroll $30K = $180K.
• Control documentation: LLC operating agreement showing 100% ownership by the applicant, franchise agreement transfer.
• Real and operating enterprise: pre-acquisition sales records, employee W-4/I-9 files, sales tax registration.
• Marginal test rebuttal: documentation that the enterprise supports 12 existing US-worker jobs, not just the applicant's personal income, with a plan to add three more within 24 months.

Process

• Document assembly, DS-160, and DS-156E filed online (June 2026).
• E-2 interview scheduled at the US embassy in Seoul (August 2026).
• Three interview rehearsals covering 30 anticipated questions: source of funds, real operations, US residency intent, expansion roadmap, non-marginal basis.
• On the interview day, the applicant delivered a two-minute summary of Seoul business history, rationale for the US franchise acquisition, and a five-year growth plan.
• Consular officer approved the E-2 visa for five years (September 2026).

Result

• E-2 treaty investor visa approved for five years.
• Spouse E-2S dependent status filed with EAD, allowing US employment.
• Children admitted in E-2D status for school enrollment.
• Franchise operations underway; first three-month revenue target met.

Lessons

• Proportionality of the investment matters more than the absolute dollar amount.
• Source of funds documentation drives the interview outcome. Every dollar of the investment must be traceable through bank records – from Seoul business sale, real estate proceeds, inheritance, or savings.
• A marginal (subsistence self-employment) finding leads to refusal. Documenting employment of at least three US workers beyond the applicant and a credible growth plan is essential.
• E-2 renews every two years and can be extended indefinitely, but does not convert directly to permanent residence. Consider a parallel EB-5 or EB-1C path where appropriate.
• NJ and NY host large Korean communities, generating steady demand for franchise, F&B, and retail E-2 cases. Song Law Firm has handled E-2 approvals across many industries.