E-2 Approval — Korean Treaty Investor Opens a U.S. Beauty Franchise Location

IMMIGRATION LAW · SONG LAW FIRM SUCCESS STORY

Client Profile

A Korean investor seeking an E-2 visa to acquire and operate one location of a well-recognized U.S. beauty franchise brand.

Case Background

Consultation began before the client executed the franchise acquisition agreement and wired the initial investment. The scope was to pre-clear the "substantial investment" and "marginality" requirements.

Legal Issues

E-2 requires (1) nationality of a country with an E-2 treaty with the United States, (2) a substantial and irrevocable investment, (3) an enterprise that is not "marginal" — capable of contributing meaningfully to the U.S. economy — and (4) the investor being in a position to develop and direct the enterprise. For small franchise units, clearing the marginality bar is often the decisive question.

Song Law Firm Strategy

• Itemized the investment — acquisition price, equipment, remodeling, initial inventory, marketing budget, lease deposit — so the substantiality of the investment was on the face of the record.
• Traced source of funds through Korean bank statements, income evidence, and asset-sale records to complete a full source-of-funds file.
• Submitted a five-year revenue, payroll, and net-income projection tied to franchise-headquarters statistics and comparable-unit benchmarks to rebut marginality.
• Structured the U.S. LLC's operating agreement so the client clearly held the "develop and direct" role.

Process

Interview at the U.S. Embassy in Seoul after document preparation. Approval issued on the interview date.

Result

E-2 approved for five years. The spouse qualifies for E-2 dependent status with EAD eligibility. The franchise unit opened as planned.

Lessons

For small franchise E-2 cases, the marginality argument is decisive. Preparing a concrete financial projection, hiring plan, and market-sized rationale from the outset dramatically raises the approval probability at the interview.