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APPLICATION ANSWERS · E-2 FIELD GUIDE

What if the franchisor requires payment before our E-2 assessment is complete?

Sources checked:

THE DIRECT ANSWER

Bring that deadline and its contractual consequences to the advisers before deciding. Commercial urgency does not remove the need to assess the proposed commitment.

Identify what the deadline actually changes

Ask whether it concerns territory reservation, an agreement or an operating milestone. Read cancellation and refund terms. Do not assume a payment can be reversed merely because the immigration plan later changes.

Hypothetical example: A Canadian entrepreneur wants to open a U.S. sensory-play studio before the school holiday period, but the landlord has not issued a final lease. The first review makes a dependency list: entity formation, location, lease, equipment, insurance, funding transfers, and a location-specific operating plan. The executed lease and payment conditions settle when money is committed; the operational plan settles whether the business can begin as described. Secure the transaction documents in their logical order and keep cancellation terms visible. The recurring error is paying a nonrefundable franchise or equipment charge before learning who controls the premises or whether the venture has a credible non-marginal plan. E-2 requires the investor to develop and direct a genuine treaty-national enterprise with capital committed to commercial risk. A seasonal opening date is a commercial preference, not a substitute for those facts. Keep this E2 timing record aligned with final filing facts and issued source materials, then preserve a dated copy internally before formal submission for future reference and review by responsible staff if questions arise later.