Charles Schwab Franchise FDD, Profits & Costs (2025)
Charles Schwab & Co., Inc. is a well-established American brokerage and banking company, founded in 1971 in San Francisco, California. The company is headquartered in San Francisco and offers a range of financial services. These services include investment advice, financial planning, retirement planning, and access to Schwab’s trading platforms.
In 2011, Schwab began offering franchise opportunities through its Independent Branch Services model, allowing financial advisors to own and operate their own branches under the Schwab brand.
Schwab’s franchisees provide a variety of financial services, including asset management, investment products, and retirement planning.
One key aspect that differentiates Schwab from competitors is its business model, which allows advisors to operate with Schwab’s established brand while benefiting from its infrastructure, technology platforms, and marketing resources.
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Initial Investment
How much does it cost to start a Charles Schwab franchise? It costs on average between $66,000 – $191,000 to start a Charles Schwab franchised business.
This includes costs for setting up the office, equipment, technology infrastructure, initial inventory, and operating expenses. The exact amount depends on various factors, including the location, the size of the franchise, and whether the franchisee chooses to lease or purchase the office space.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $25,000 to $50,000 |
| Initial Training Travel & Expenses | $2,000 to $4,000 |
| Start-up Supplies | $200 to $600 |
| Business Licenses | $50 to $1,500 |
| Association Fee | $750 |
| Sublease Rent | $6,000 to $27,600 |
| Facilities Fee | $16,200 to $56,400 |
| Branch Hardware and Connectivity Service Fee | $2,700 to $12,000 |
| E&O Insurance Fee | $570 to $3,330 |
| Additional Insurance | $250 to $1,350 |
| Travel and Entertainment | $600 to $1,500 |
| Local Marketing | $10,000 to $30,000 |
| Additional Funds – Initial Period | $1,200 to $2,400 |
| TOTAL | $65,520 to $191,430 |
Competitors
Here are a few Charles Schwab competitors as a comparison:
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Frequently Asked Questions
How many Charles Schwab locations are there?
As of the latest data, Charles Schwab operates a total of 382 locations, with 94 of these being franchised units and 288 being company-owned units.
What is the total investment required to open a Charles Schwab franchise?
The total investment required to open a Charles Schwab franchise ranges from $66,000 to $191,000.
What are the ongoing fees for a Charles Schwab franchise?
Charles Schwab franchisees pay an 8% royalty fee on gross revenue and a monthly marketing fee, which is debited through the monthly reconciliation.
What are the financial requirements to become a Charles Schwab franchisee?
To become a Charles Schwab franchisee, the financial requirements include a minimum net worth of $1.5 million and liquid capital of at least $500,000. These financial thresholds ensure that potential franchisees have the necessary resources to invest in and operate the franchise successfully.
Who owns Charles Schwab?
Charles Schwab franchise is owned by Charles Schwab Corporation, a publicly traded company. The corporation is led by its founder, Charles R. Schwab, who remains a key figure in the company’s leadership, although it operates as a public entity with shareholders.
Disclaimer
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