Fast food franchises are a common pick for E-2 visa applicants, and it’s easy to see why: the brands are familiar, the systems are already in place, and the demand seems steady. For entrepreneurs entering the U.S. market, this kind of structure can feel like a safer way to start a business and meet visa requirements.
Part of their popularity also comes from changing food habits. More people are eating out, ordering on their phones, or grabbing something quick between jobs or errands. That convenience factor keeps foot traffic high, especially in busy or urban areas. Combined with brand loyalty and delivery apps, fast food remains one of the most consistent performers in U.S. retail.
This article breaks down the good, the bad, and the ugly of using a fast food or a quick service restaurant franchise as your E-2 visa business. If you are considering this route, here’s what to know before moving forward.
The Good — Why Fast Food Franchises Appeal to E-2 Visa Investors
Steady Demand and Industry Growth
According to Research and Markets, the U.S. fast food and quick-service restaurant market was valued at $248.8 billion in 2024 and is projected to grow to over $345 billion by 2033. Consumer demand for affordable, quick meals continues to drive expansion, especially in cities and near major roads. That consistent growth makes fast food one of the more resilient sectors for new investors building a visa-eligible business.
Staffing and Scale Fit E-2 Visa Requirements
Most fast food restaurants need several employees to manage food prep, cleaning, ordering, and service. That staffing model can help satisfy one of the key E-2 visa criteria: that the business is more than marginal and creates U.S. jobs. For investors aiming to open multiple locations over time, the scale of this model can also support visa renewals by showing sustained growth.
Systems Make Operations Easier to Manage
Franchise brands typically offer built-in support for new operators, from site selection and kitchen layouts to staff training, marketing, and vendor relationships. These systems help reduce risk for first-time U.S. business owners, while also showing the United States Citizenship and Immigration Services (USCIS) that the investor is engaged in a real, operating enterprise.
Recognized Brands Add Credibility
According to Entrepreneur’s 2024 rankings, quick-service restaurants remain among the most sought-after franchise categories in the U.S. Brands that offer streamlined menus, fast service, and broad market presence tend to attract more loyal customers. For E-2 visa applicants, choosing a proven franchise can help strengthen the petition by demonstrating a realistic path to profitability.
The Bad — What Fast Food Franchise Buyers Often Overlook
Fast food brands may be familiar, but running a franchise comes with real challenges. For E-2 visa investors, these problems can affect profitability, compliance, and long-term renewal. Here are some of the most common pain points that deserve a closer look.
Startup Costs and Franchise Fees
Franchise restaurants can be expensive to launch. Between franchise fees, equipment, buildout, and required inventory, total startup costs can be significant. For investors relying on their business to qualify for an E-2 visa, that investment needs to be substantial enough to meet USCIS standards while still leaving room for operating capital.
Profit Margins Are Slim
The fast food model is built on volume, not large markups. Labor, food, rent, and royalty payments take up most of the revenue. Many franchises operate with average profit margins between 6 and 9 percent. According to restaurant industry publication QSR Magazine, these thin margins have made it harder for some franchisees to stay profitable, especially as costs rise.
Franchise Bankruptcies Are Increasing
Recent industry coverage shows that franchisee bankruptcies are becoming more common. According to QSR Magazine, a growing number of operators are struggling with higher labor costs, inflation, and declining customer traffic. Some franchisees have exited unprofitable brands or filed for bankruptcy after just a few years in business. This trend reflects deeper structural risks that can affect even well-known food chains.
Staffing and Operational Strain
Entrepreneurship and business publication Entrepreneur Magazine notes that many franchise operators are feeling the pressure of labor shortages and operational complexity. Hiring and retaining workers is a major challenge, and service delays or missed shifts can hurt customer retention. For E-2 visa holders, who are often hands-on in their first business, this daily strain can be more intense than expected.
Limited Flexibility and Control
Fast food franchise agreements often limit what owners can change. Pricing, suppliers, hours, layout, and advertising are usually decided by the franchisor. That lack of control can be frustrating, but more importantly, it may also conflict with the E-2 visa requirement that the investor must actively direct and develop the business.
The Ugly — Risks That Can Jeopardize Your E-2 Investment
Not all fast food franchises are built for long-term success. Some may appear profitable at first but come with deeper issues that are harder to spot. These risks can affect both your investment and your E-2 visa status if the business fails to meet key requirements.
Poor Unit Performance and Closures
According to QSR Magazine, a multi-unit operator running 57 fast food locations filed for bankruptcy after losing $12.5 million on $67 million in annual sales. Despite high revenues, rising labor costs, rent obligations, and lower customer traffic created financial losses the business could not sustain. Cases like this show that even large operations are not immune to failure.
Industry-Wide Signs of Strain
QSR Magazine also reports that financial pressure is rising across the quick-service sector. Operators are dealing with increased food and labor costs, lower traffic, and limited pricing flexibility. Some have filed for bankruptcy or quietly exited their franchise agreements. These patterns reflect broader risks that go beyond any one brand.
Franchise Brand Decline or Saturation
Even well-known food brands can lose relevance. Changing consumer preferences, health trends, or scandals can damage a franchise’s reputation, sometimes overnight. In other cases, the brand may simply become overbuilt in a given market, reducing individual store performance. E-2 investors who buy into a declining or saturated brand may find themselves locked into a rigid system with fewer options to pivot or recover.
Red Flags in Resale Listings
Some franchises marketed to international buyers come with outdated equipment, unclear lease terms, or overstated income claims. Without full financial documentation and proper due diligence, investors may inherit problems that weaken their visa application or lead to financial losses. A business that once looked solid may no longer meet current E-2 standards.
Thinking about a fast food franchise for your E-2 visa application?
The model can work, but the details matter. Before you invest, take the time to understand whether the business truly supports a strong visa case. We help entrepreneurs evaluate potential businesses with the E-2 in mind. That includes structure, staffing, documentation, and realistic planning.
Have questions or need guidance?
Get in touch to schedule a consultation. We’ll help you make a more informed, visa-ready decision.