CHARLES SCHWAB
The Charles Schwab Independent Branch franchise enables Independent Branch Leaders (IBLs) to operate a retail branch office under the Charles Schwab brand, offering non-discretionary investment advice and access to approved financial products and services such as mutual funds, ETFs, brokerage, annuities, insurance, and cash management to retail clients. Franchisees receive a monthly Net Payout calculated from revenue shares on client assets and transactions, adjusted by multipliers based on client type (e.g., new-to-firm, seeded, transitioned) and branch tenure, targeting individual investors seeking personalized financial guidance. The business model is turnkey, with Schwab handling site setup, technology, supervision, and national marketing support.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
No ongoing royalty or brand advertising fund fees (percentage-based). Key fixed monthly fees include $250 Association Fee + $2,000-$11,000 Sublease Rent + $5,400-$18,800 Facilities Fee + $900-$2,700 Branch Hardware & Connectivity + $175-$355 Insurance per registered rep.
Franchise Stats
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
How CHARLES SCHWAB Compares to Other Business Services Franchises
Key Insights
- Higher than average SBA loan default rate in Business Services
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
CHARLES SCHWAB Current | $79K - $222K | $50K | N/A | 95 |
| Bimbo Foods Bakeries Distribution, LLC | $14K - $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K - $609K | $30K | 5.0% | 4,500 |
| JACKSON HEWITT TAX SERVICE | $71K - $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K - $21K | $11K | 3.0% | 2,655 |
| SERVPRO (UNIT) | $259K - $380K | $100K | 10.0% | 2,286 |
Business Services Average 187 franchises | $118K - $285K | $46K | 10.4% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 187 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+21 more states
SBA Loan History
Historical SBA 7(a) loan data for CHARLES SCHWAB franchisees (2014 - 2016)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a CHARLES SCHWAB franchise?
The total initial investment to open a CHARLES SCHWAB franchise ranges from $78,500 to $222,225. This includes a franchise fee of $50,000.
How many CHARLES SCHWAB franchise locations are there?
As of the 2025 FDD, CHARLES SCHWAB has 95 franchise locations. The company has been franchising since 2011.
Can you get an SBA loan for a CHARLES SCHWAB franchise?
Yes, SBA loans are available for CHARLES SCHWAB franchises. Historical data shows 2 SBA 7(a) loans have been approved for CHARLES SCHWAB franchisees, with an average loan amount of $385,000. The historical default rate is 0.0%.
Is CHARLES SCHWAB a good franchise to buy?
CHARLES SCHWAB shows several positive indicators: low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in CHARLES SCHWAB?
Talk to a franchise advisor to get personalized guidance and learn if CHARLES SCHWAB is the right fit for you.
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