IN THIS GUIDE · Ask the franchisor and the seller the questions that decide whether a Saint-Augustin-de-Desmaures couple's dealership purchase is an E-2 investment
Start with the E-2 eligibility and application overview
Questions for the seller
What exactly is being sold: shares of the operating company or its assets? Which contracts, leases and inventory transfer? What are the last three years of tax returns and payroll, and how many employees stay? Is any seller financing secured against the dealership's own assets? The answers establish the enterprise's actual cost, which is the denominator for substantiality, and reveal whether the business is operating or being wound down.
Questions for the franchisor
What decisions does the franchise agreement reserve to the franchisor, and which remain with the owner? Can the owner hire, fire, set hours, choose local suppliers outside the required lines and decide on expansion? Is franchisor approval of the buyer conditional on anything that would delay closing? The investor must be the person who develops and directs the enterprise; a franchise that reduces the owner to a site manager weakens that showing.
Questions for the couple themselves
Whose money is it, and from where? Trace the funds from their lawful origin through every account to the closing. Which of the two will hold the shares and which will be the E-2 principal? If ownership is split equally, decide who will hold operational control and document it. A spouse in E-2 derivative status is employment-authorized incident to status and may work in the dealership or elsewhere, so the second spouse does not need a separate principal case.
Questions about the money's timing
Funds paid into an escrow that releases only on visa issuance can count as committed if the terms make the commitment irrevocable on approval; a refundable deposit does not. Read the release and refund clauses before paying anything. Canadian citizens apply for an E-2 visa at a consulate, so plan the closing sequence around that process, and remember that E-2 provides no direct path to permanent residence.
Match the enterprise plan to committed capital
If sales, production or hiring stall each time you leave, the non-marginality picture weakens, because the enterprise must show capacity beyond a minimal living for you and your family, now or in a reasonable future period, or a significant economic contribution. Substantial capital is judged relative to the cost of the particular enterprise, not against a fixed minimum, so the spending pattern should match the plan you are presenting. Before relying on a forecast, identify the decision it must support: whether the capital is committed beyond the investor’s unilateral reach and exposed to the enterprise’s risk of loss, and whether the operation may avoid marginality.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.