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SYLVAN LAKE · E-2 FIELD GUIDE

Should the advertised franchise package be treated as the complete E-2 investment?

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THE DIRECT ANSWER

No. Examine the actual business costs, qualifying funds committed and remaining obligations. The advertised package price is not a universal E-2 threshold.

Separate purchase terms from operating support

List which amounts acquire rights, equipment or other real business needs and which are still optional or refundable. Keep government and professional fees identifiable. The capital assessment also depends on lawful source, risk and the collateral securing any borrowing.

The valuable work here is judgement: reading the refund clause, deciding which payments count toward the committed total, and testing whether the revised plan still supports a non-marginal enterprise. Review refund and cancellation terms in the purchase or loan agreement rather than assuming every dollar spent automatically helps eligibility, and keep independent commercial and tax diligence as its own line item. A seller who wants a non-refundable deposit as well is negotiating price and certainty, not immigration law; a deposit of a meaningful percentage, forfeited only if the buyer defaults, strengthens the case while limiting the loss on refusal. A purchase price can carry goodwill payable later, a holdback released after a warranty period and an earn-out contingent on results nobody has produced yet, none of which is money placed at risk today.