Can I open a franchise in my name as an H-1B holder?

As an H-1B holder, you may be a passive investor in a franchise, but you cannot take on active management of it. The H-1B authorizes work only in the role and for the employer that sponsored the visa, so managing or operating your own business tends to exceed that authorization.

The key distinction is between investing and working:

• Passive investment (contributing capital, being a partner without touching the operations) generally does not conflict with H-1B status.
• Active management (managing, making day-to-day operational decisions, working in the franchise) can be interpreted as unauthorized employment.

In practice, many H-1B holders open businesses by strictly remaining in the role of investor and delegating operations to hired third parties. The line between investing and working is not always clear, and how the business is structured makes a difference for immigration compliance.

Because this is a sensitive area, it is worth checking the updated rules on the USCIS website and reviewing the business structure with a qualified professional before opening the franchise, to protect your status.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.