Cross-Border Entrepreneurship in 2025: How Global Entrepreneurs Are Using Franchising to Build in the U.S.

There was a time when expanding into the United States meant building everything from the ground up. Entrepreneurs had to secure locations, hire teams, and learn the market step by step. Franchising changed that. It introduced a structured model that lets entrepreneurs plug into proven systems instead of starting from zero.

That model has reshaped how international entrepreneurs enter the U.S. market. Global brands like McDonald’s and 7-Eleven still set the standard, but smaller franchises in healthcare, senior care, and home services are gaining the same kind of traction.

According to the International Franchise Association’s (IFA) 2025 Economic Outlook, franchise growth exceeded projections in 2024 despite economic uncertainty. Output rose 2.2 percent, beating the 1.9 percent forecast, and is expected to expand another 2.4 percent this year, outpacing the 1.9 percent growth projected for the overall U.S. economy by the Congressional Budget Office.

Entrepreneurs who once focused on local growth are now looking to the U.S. for proven models that can withstand market volatility. Venture conditions across emerging markets tightened through 2024, creating a more cautious environment for entrepreneurs. MAGNiTT’s 2024 Emerging Venture Markets Report shows total funding at 9.1 billion dollars, a 40 percent decline from 2023. Southeast Asia recorded the sharpest drop at 45 percent, followed by Africa at 44 percent. While the total number of investors rose slightly by 2 percent to 1,707, the average capital deployed per deal continues to contract. Early-stage rounds are smaller, exits are slower, and local credit conditions remain tight. These pressures are reshaping how founders plan for growth and where they look for predictable systems and scalable opportunities.

Franchising as a Low-Risk Entry Path

Franchising turns business ownership into a process that can be learned, managed, and scaled. Entrepreneurs enter a market through a model that proves its demand every day, from customer transactions to supplier relationships. This transparency in operations and accountability in performance make franchises easier to evaluate and manage, especially for those entering from abroad.

The structure also fits within the E-2 Treaty Investor visa, which defines eligibility around an active and substantial investment in a bona fide enterprise, according to the U.S. Citizenship and Immigration Services (USCIS). The U.S. Department of State’s Foreign Affairs Manual (9 FAM 402.9) echoes this, requiring investors to show ownership or control of an active business that contributes meaningfully to the U.S. economy.

Franchises meet these conditions naturally because they operate with visibility through financial records, employees, and consistent business activity. For international entrepreneurs, that visibility becomes a foundation they can build on so that they can devote their time on management and growth.

Finding the Right Opportunity

Choosing the right franchise begins with matching business objectives to operational and visa requirements. Under the E-2 Treaty Investor Visa, investors must own at least 50 percent of the enterprise or demonstrate control of management decisions. The U.S. Department of State’s list of treaty countries determines whether an applicant’s nationality qualifies for this category.

According to the IFA’s 2025 Economic Outlook, the U.S. franchise sector continues to expand, with total output projected at 936.4 billion dollars across 851,000 establishments. Growth is led by personal services and retail food, products, and services, which are expected to rise 4.3 percent and 3.5 percent, respectively. These industries reflect sustained consumer demand and consistent hiring, two traits that help demonstrate an enterprise’s active status for E-2 purposes. The 2025 outlook highlights specific industries showing consistent expansion and practical entry potential for international entrepreneurs.

• Personal services cover childcare, beauty, fitness, and other consumer-facing models. They offer moderate startup costs and repeat-business potential, making them accessible entry points for E-2 investors seeking active management roles.
• Retail food and specialty products continue to attract strong consumer spending and established franchisor support. Investors gain a tangible, high-traffic operation with measurable sales and employment, both of which support visa qualification.
• Healthcare and senior care benefit from aging demographics and consistent community demand. These businesses demonstrate ongoing service activity and align naturally with the E-2 requirement for a bona fide, non-marginal enterprise.
• Home services, including cleaning, repair, and restoration, deliver predictable revenue streams and scalable territory models. They allow investors to manage local teams while maintaining direct operational control.
• Wellness and lifestyle concepts such as nutrition, fitness recovery, and preventive health reflect long-term consumer shifts toward well-being. Many use subscription or membership models that sustain recurring revenue and investor oversight.

Entrepreneurs evaluating opportunities should review each franchise’s operational record, financial reporting, and support model. Various tools can help identify pre-qualified franchises that meet both investment and immigration standards. The goal is not only to enter the market but to do so through a business with proven activity, scalability, and long-term resilience.

Funding Models for International Entrepreneurs

Financing is a core practical issue for entrepreneurs entering U.S. franchising. In March 2025 the Small Business Administration issued Policy Notice 5000-865754 to implement Executive Order 14159; the notice limits SBA 7(a) and 504 loans to businesses whose beneficial owners are U.S. citizens, U.S. nationals, or lawful permanent residents, and it lists visa holders and other foreign nationals as ineligible (SBA Policy Notice 5000-865754).

With SBA access restricted, international entrepreneurs often rely on franchisor financing, seller financing, or private capital. Many franchisors provide internal or third-party financing to cover startup fees, build-out, or equipment. Others allow staged investment that satisfies the E-2 visa’s substantial investment requirement while maintaining adequate working capital.

Market data from the BizBuySell 2025 Insight Report shows that seller financing continues to account for a significant share of small-business transactions, a sign of lenders’ cautious posture and buyers’ preference for flexible terms. For international investors, these arrangements can help document funds placed at risk and direct operational control, both required under E-2 visa standards.

A sound financing plan must verify the lawful source of funds, demonstrate investment at commercial risk, and retain sufficient working capital. Meeting these conditions supports both business stability and compliance with U.S. investment visa requirements.

Common Challenges for Global Entrepreneurs

Some international entrepreneurs underestimate how much preparation the U.S. market demands. The most frequent problems arise not from the franchise model itself but from how investors manage setup and compliance. Delays often start with incomplete financial records, unclear capital flow, or relying on informal arrangements that are difficult to verify.

Another common issue is choosing a franchise that looks promising on paper but lacks the scale or management structure needed for growth. Entrepreneurs sometimes underestimate day-to-day involvement, expecting passive income when the business requires active oversight.

Misjudging local costs can also erode early progress. Rent, staffing, and insurance often differ sharply from estimates made abroad. Without enough working capital, even a good franchise can struggle to meet initial performance targets.

The strongest entrepreneurs prepare as if they are already operating. They keep every transaction documented, stay present in daily decisions, and plan for expenses beyond the launch phase. This approach prevents most setbacks and builds the credibility needed for long-term stability in the U.S. market.

Conclusion

For many global entrepreneurs, 2025 is a year of recalibration. Markets at home are unpredictable, and growth often feels out of reach. The U.S. remains a place where effort and structure can still meet opportunity, and franchising gives newcomers a way to build within a proven system instead of starting from zero.

The entrepreneurs who do well approach it with patience and presence. They study the numbers, follow the model, and treat every detail as part of the investment. Over time, that consistency turns into stability and trust, two things that matter as much as capital in a new market.

Franchising has changed what international business ownership looks like. It gives entrepreneurs a framework to build on, but it still rewards the same qualities that drive entrepreneurship anywhere: preparation, discipline, and commitment to growth.

Article contributed by Jean-David Cohe

Jean-David Cohen is the founder of E2VisaFranchises, a franchise consulting firm that helps foreign entrepreneurs identify the right franchise opportunities aligned with the E-2 visa. With 20+ years of experience, and as a former E-2 visa holder himself, Jean-David supports international founders in launching successful U.S. ventures.

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