Ameriprise Financial Services, LLC Independent Advisor Business Franchise Cost & 2026 FDD Data
76/100
Strongest tier
76 this brand53 Financial Services medianlikely 72–80 (high confidence)
Higher is better · an editorial assessment, not investment advice
#276 of 3,068 graded brands
Why an A: Helped by scale, legal record and transparency. Held back by unit growth. See all six factors
- Total investment
- $10K – $138K
- Avg gross sales
- partial, no system average
- SBA charge-off
- 0.3%
1 in 333 SBA 7(a) loans to Ameriprise Financial Services, LLC Independent Advisor Business owners charged off (1 of 372 resolved loans, approved since FY1991); Financial Services median 7.3%. Loans approved FY2014–FY2023: 1 of 310 resolved loans charged off (0.3%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
Ameriprise's independent-advisor franchise lets financial advisors run their own practice under the Ameriprise brand, offering investment, retirement, and financial planning. Franchisees build a book of retail clients and assets under management while handling advice, compliance, and prospecting.
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Ameriprise Financial Services, LLC Independent Advisor Business franchise requires a total initial investment of $10K – $138K, including a $2K franchise fee. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 0.3% charge-off rate on 372 resolved loans. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
Quick verdict · vs Financial Services median
Top edge: green = better than the Financial Services median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSItem 19 publishes no overall average. The figure shown was the TOP of thirteen production bands — independent advisors billing $1,000,000+ in annual gross dealer concession, 1,628 of 3,751 advisors (printed p.46) — and the bands run down to $25,538. The measure is also per ADVISOR rather than per outlet, and GDC is gross dealer concession before a payout that runs 73.7% to 88.0%; the same row's average gross income is $2,742,768 and its median $1,803,545.
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 117 (52 opened, 133 closed; other Item 20 movements account for the remaining 36).
- LEGAL11 litigation matters disclosed in Item 3, higher than typical. Of these, 11 name the franchisor or its predecessor. Pending claims are allegations, not findings.
AT STAKEOne unit at the Item 7 midpoint: $10K a year in payments on assumed SBA 7(a)-style terms.You put in about $15K of your own cash and personally guarantee a $59K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (6)
- Net -117 franchised outlets in 2025 (Item 20, outlet counts). Ask owners why outlets closed.
- 6 pending matters name the franchisor in Item 3 (litigation). Pending claims are allegations, not findings; for a system this size the score counts the legal record in the brand's favour. Read the matter in Item 3.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
- An owner must run the business personally (Item 15, owner participation). Ask whether a trained manager can ever stand in.
Checked and clear: no auditor doubt that the franchisor can keep operating and the full filing on file, and an Item 19 average from 3,751 units. Not on file here, so ask: SBA charge-off rate against the category median.
What to do next
Step 1: Read the FDD itself.
Free: read the 2026 filing on this site, page by page. The franchisor must also give you its current FDD at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Ameriprise Financial Services, LLC Independent Advisor Business owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 21% below the Financial Services median ($94K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
The filing's Item 7 TOTAL row prints $9,576 to $138,402. Its own line items add to $8,698 to $134,585. The total is shown as the franchisor printed it; the lines are listed as printed. Single Item 7 table (pp28-29); printed TOTAL $9,576.62 to $138,402.60 (the headline 9,576/138,402 truncates the cents).
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Ameriprise Financial Services, LLC (Item 1: 200 Ameriprise Financial Center, Minneapolis, Minnesota 55474) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee (including initial orientation program) | $1.5K | $1.5K | |
| Additional Funds - 3 months | $0 | $3K | |
| Association Fee | $290 | $290 | |
| Business Authorizations and Licenses | $500 | $3K | |
| Computer Hardware | $1.2K | $2.3K | |
| Computer Software Installation Service | $200 | $200 | |
| Errors and Omissions Fee | $167 | $208 | |
| Internet Service, Mobile Communication Devices and Services, Phone Service, Printers and Scanners | $1.6K | $21.2K | |
| Network Equipment | $1.41K | $8.2K | |
| Network Monitoring | $25 | $25 | |
| Office Aesthetics and Furnishings | $0 | $50K | |
| Office Cabling | $500 | $6K | |
| Office Lease | $0 | $3K | |
| Optional Training Programs | $0 | $10K | |
| Other Software Fees and Licenses | $20 | $200 | |
| Security Deposits | $0 | $9K | |
| Signage | $60 | $9K | |
| Software Licenses and Fees for Staff | $135 | $550 | |
| Start-up Supplies | $100 | $100 | |
| Supervision | $296 | $2.72K | |
| Total initial investment | $10K | $138K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7; the lines above add to $8,698 to $134,585, $3,817 at most from the printed total, which is the figure shown. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
Technology feeThe filing's detailTechnology Access Package: $595 per month, required. Includes AdvisorCompass applications access and research. Additional a la carte software items available separately. | $595/month |
| Training feeAdditional training charge listed in Item 6 | $5,000 |
| Transfer fee | $800 |
What do units actually make?
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Ameriprise Financial Services, LLC Independent Advisor Business unit would ask of you, from the filing's Item 7 total and labeled assumptions.
How these figures are worked out
- Loan (assumption): 80% of the $74K Item 7 midpoint is a $59K loan, paid over 10 years at 10.5%: $10K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Ameriprise Financial Services, LLC Independent Advisor Business' past SBA 7(a) loans averaged 6.2% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $15K Assumption (the part the loan does not cover of the $74K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $59K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
Item 19 of the Ameriprise Financial Services, LLC Independent Advisor Business FDD discloses outlet figures from $0 to $99.2M but no single average across all outlets. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.
Returns model · one unit
What would one Ameriprise Financial Services, LLC Independent Advisor Business unit leave you each year after the loan payment?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $10K to $138K
Item 7's $0 to $9K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, royalty rate, ad fund rate, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $59K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Ameriprise Financial Services, LLC
Financial performance
Item 19 publishes no overall average. The figure shown was the TOP of thirteen production bands — independent advisors billing $1,000,000+ in annual gross dealer concession, 1,628 of 3,751 advisors (printed p.46) — and the bands run down to $25,538. The measure is also per ADVISOR rather than per outlet, and GDC is gross dealer concession before a payout that runs 73.7% to 88.0%; the same row's average gross income is $2,742,768 and its median $1,803,545.
- Range (low → high)
- $0→$99.2MNot cited
- Cohort dispersion (min → max)
- Transparency
- 4 / 10
- vs category median 0 / 10 (more detail than most)
Percentile ranks within Financial Services
Each rank is among the Financial Services brands that report that figure (the count is under each bar).
Item 19 (sales and earnings) · by group
What the filing does disclose
Item 19 of this FDD reports performance in more than one group. We publish no single average for this brand; the groups the filing does disclose are listed below, quoted from its own Item 19 table.
Each row below is quoted from the FDD's own Item 19 table. Gross sales are not profit.
Per franchisee, not per outletItem 19 detail
Item 19 publishes no overall average. The figure shown was the TOP of thirteen production bands — independent advisors billing $1,000,000+ in annual gross dealer concession, 1,628 of 3,751 advisors (printed p.46) — and the bands run down to $25,538. The measure is also per ADVISOR rather than per outlet, and GDC is gross dealer concession before a payout that runs 73.7% to 88.0%; the same row's average gross income is $2,742,768 and its median $1,803,545.
gdc band
| Segment | Sample (franchisees) | Avg |
|---|---|---|
| GDC $1,000,000+ (Annual GDC in 000s: 1000+) | 1,628 franchisees | $3.1M |
| GDC $900,000-$999,000 | 108 franchisees | $955K |
| GDC $800,000-$899,000 | 137 franchisees | $850K |
| GDC $700,000-$799,000 | 153 franchisees | $750K |
| GDC $600,000-$699,000 | 140 franchisees | $650K |
| GDC $500,000-$599,000 | 129 franchisees | $552K |
| GDC $400,000-$499,000 | 158 franchisees | $447K |
| GDC $300,000-$399,000 | 205 franchisees | $348K |
| GDC $200,000-$299,000 | 216 franchisees | $248K |
| GDC $100,000-$199,000 | 299 franchisees | $143K |
| GDC $50,000-$99,000 | 303 franchisees | $71K |
| GDC $0-$49,000 | 275 franchisees | $26K |
vs Financial Services medians
How Ameriprise Financial Services, LLC Independent Advisor Business compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Financial Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Ameriprise Financial Services, LLC, owned by Ameriprise Financial, Inc.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Ameriprise Financial Services, LLC
- Parent company
- Ameriprise Financial, Inc.
- FDD Item 1, page 10 of the 2026 FDD
- CEO title
- Chairman and Chief Executive Officer (of Parent, Ameriprise Financial, Inc.)
- James M. Cracchiolo
- Incorporated in
- DE
- HQ
- 200 Ameriprise Financial Center, Minneapolis, Minnesota 55474
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $9.3B
- latest fiscal year in the 2026 FDD; $8.4B the year before
Franchisee associations and councils
- Franchise Advisory Council (FAC)
As the filing names them; ask whether each is independent or set up by the franchisor (Item 11 or 20).
Overview
About
- CEO
- James M. Cracchiolo
- States and territories listed
- 51
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
-265 franchised outlets over the two years to 2025 (4,003 to 3,738, -6.6% in total, -3.4% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1,724
- Corporate units in the system
- % franchised
- 68%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Projected new
- 15
- Franchisor's next-year forecast
Item 20 Table No. 5 prints three numeric columns and this filing leaves one of them blank rather than printing a zero. The Totals row prints 15 projected new franchised offices and 23 'Projected New Offices to be Opened by Us'; the signed-but-not-opened column is blank. Owner ruling R120-A (2026-10-09): a blank column prints no figure.
- Transfer rate
- 9.3%
- Owners selling to other franchisees
- Termination rate
- 2.7%
- Franchisor-initiated terminations
Item 20 · franchised units at year end
Franchised units fell from 4,003 in 2023 to 3,738 in 2025
Axis does not start at zero.
Source and method
Reacquisitions and outlets moved to or from company ownership also change the count, so opened minus closed differs from the change.
Item 20 (outlet counts) outlets · 51 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 50 states and DCNo current outlet
2,384 current outlets in 51 states, plus 2 with no US state or territory: the 2,386 on the owner list, of 3,738 franchised at year end (Item 20). 53 former owners (terminated, transferred, not renewed or otherwise left) listed separately.
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 0.3% of 372 resolved SBA 7(a) loans. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 473
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $301.5M
- Average loan
- $637K
- loan volume divided by loans
- Charge-off rate
- 0.3%
- 1 of 372 resolved loans
- Paid in full
- Not on file
- Charge-off, loans approved FY2014–FY2023
- 0.3%
- 1 of 310 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 31
- Average interest rate
- 6.2%
- Jobs reported
- Not on file
- Lender concentration
- 58%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
The approval-year breakdown covers 371 of the 372 resolved loans and 1 of the 1 charge-offs (FY2008 to FY2023).
SBA 7(a) · charge-off rate by approval year
Ameriprise Financial Services, LLC Independent Advisor Business: below all franchise loans in each of the 10 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge; recent years are too early to judge while loans are still being repaid). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2008 | 8 | 0 | Too few |
| 2009 | 9 | 0 | Too few |
| 2010 | 7 | 0 | Too few |
| 2011 | 10 | 0 | 0.0% |
| 2012 | 7 | 0 | Too few |
| 2013 | 20 | 0 | 0.0% |
| 2014 | 37 | 0 | 0.0% |
| 2015 | 65 | 0 | 0.0% |
| 2016 | 67 | 0 | 0.0% |
| 2017 | 39 | 0 | 0.0% |
| 2018 | 34 | 1 | 2.9% |
| 2019 | 17 | 0 | 0.0% |
| 2020 | 26 | 0 | 0.0% |
| 2021 | 19 | 0 | 0.0% |
| 2022 | 3 | 0 | Too early |
| 2023 | 3 | 0 | Too early |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Ameriprise Financial Services, LLC Independent Advisor Business from SBA 7(a) FOIA loan records.
- Average interest rate
- 6.2%
- Lender concentration
- 58%
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| Live Oak Banking Company | ||
| 272 | $182.1M | 0.0%233 resolved |
| Byline Bank | ||
| 66 | $61.0M | 0.0%34 resolved |
| Citizens Community Federal National Association | ||
| 15 | $8.3M | 0.0%12 resolved |
| First State Bank Nebraska | ||
| 12 | $8.4M | Too few6 resolved |
| Eastern Bank | ||
| 10 | $586K | Too few8 resolved |
| Wells Fargo Bank National Association | ||
| 8 | $3.0M | Too few6 resolved |
| Manufacturers and Traders Trust Company | ||
| 7 | $888K | Too few5 resolved |
| Bank of Ann Arbor | ||
| 7 | $1.1M | Too few7 resolved |
| PNC Bank, National Association | ||
| 5 | $1.5M | Too few3 resolved |
| U.S. Bank, National Association | ||
| 5 | $1.3M | Too few3 resolved |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| CA California | 55 | 1 | 2.3%44 resolved |
| TX Texas | 39 | 0 | 0.0%31 resolved |
| WI Wisconsin | 32 | 0 | 0.0%28 resolved |
| OH Ohio | 29 | 0 | 0.0%25 resolved |
| FL Florida | 22 | 0 | 0.0%15 resolved |
| NY New York | 22 | 0 | 0.0%19 resolved |
| CT Connecticut | 16 | 0 | 0.0%15 resolved |
| IL Illinois | 16 | 0 | 0.0%14 resolved |
| PA Pennsylvania | 16 | 0 | 0.0%13 resolved |
| NJ New Jersey | 15 | 0 | 0.0%13 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. The Loans column counts every approval in the window, including loans still being repaid.
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
With a charge-off rate of 0.3% on 372 resolved loans, very few of this brand's SBA 7(a) loans have been charged off.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 4,003 to 3,738 over the two years to 2025.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 76/100 (category median 53); the full grade is at the top of the page.
How the grade is built
Ameriprise's declining unit count, opaque royalty structure, extensive regulatory/legal troubles, withheld profitability data, and unprotected territories create a risk of franchisee underperformance and franchisor vulnerability.
Why an A, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Weighs on it, weakest dimension-265 franchised outlets over the two years to 2025 (4,003 to 3,738, -6.6% in total, -3.4% a year compounded); turnover 3.6%
- Scale Helps3,738 franchised units, +1,724 company-owned (5,462 in all); franchising since 1999
- Legal Helps11 matters naming the franchisor among the Item 3 matters we list (0.2 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+10 points)SBA loan record: the SBA charge-off rate (0.3% on 372 resolved loans) is under 2%, a range the score counts in a brand's favour, so it added 10 points.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Franchisor is defendant in multiple pending matters including cash sweep class actions (Mehlman/Tripson consolidated), FINRA arbitrations by current/former advisors (Mattson), collection matters (Urban), recruiting-related cases (Oppenheimer, Edward Jones). Past SEC/FINRA settlements: $4.5M (2018 safeguarding), $8.75M total disgorgement+penalty (2017 F-Squared), $850K fine (2016 FINRA wire transfer). Field sales force and advisor client litigation of 5-60 matters/year disclosed as routine.
Largest disclosed settlement in the franchisor's own cases: $6,300,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Notes from the filing review · not the score inputs
- 01MINORExtremely wide royalty range (9-28% of GDC) lacks transparency; unclear what determines placement and actual franchisee take-home
- 02HIGHSix active litigation matters including class action, FINRA arbitration, and three regulatory settlements indicate systemic compliance failures in supervision and advertising
- 03MINORUnprotected territory creates direct competition risk from other franchisees and company-employed advisors
- 04MINORLow franchise fee ($1,500) and high investment range suggests upfront capital may be understated or variable costs are substantial
- 05MINORThree-year term is short; renewal risk and franchisor control leverage are high
- 06MINORRecent SEC/FINRA settlements indicate franchisor's own regulatory compliance deficiencies that cascade to franchisees
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail11 matters · Item 3
Litigation cases
The franchisor
Pending (6)
Elizabeth Ann Warner v. Ameriprise Financial Services, LLC
pendingfiled 2025-03-28 · FINRA arbitration · 25-00625
“… FINRA case no. 25-00625, filed on March 28, 2025. Claimant alleges she was recommended the following unsuitable investments: eleven annuities; four variable universal life insurance policies; and three illiquid investments that include two non-traded REITs”Page 15 of the 2026 FDD, Item 3
Outcome: “A FINRA arbitration hearing is scheduled to begin April 27, 2026. B.”
Oppenheimer & Co. Inc. v. Ameriprise Financial Services, LLC, Logan W. Shalmi, Andrew M. Lerner, Mark E. Zuckerman, Lance P. Ross, Hector G. Aguilar, John J. Pescatore, Stephen A. Jaffe and Charles M. Shalmi
pendingfiled 2025-12-23 · FINRA arbitration · 25-02828
“… FINRA Case 25-02828, filed on December 23, 2025. Claimant alleges Ameriprise orchestrated a raid of its Boca Raton, Florida branch office”Page 17 of the 2026 FDD, Item 3
Outcome: “Claimant seeks a permanent injunction and damages of $45m. Ameriprise’s Answer to the Statement of Claim is due February 12, 2026.”
Susanne Mehlman, Joy Hultman, Mindy Bender and Robert Sullivan, Individually and on Behalf of All Others Similarly Situated v. Ameriprise Financial Services, LLC, et al.
pendingBrought by a third party · filed 2024-07-30 · U.S. District Court for the District of Minnesota · 2:24-CV-03018-JRT-DLM
“… Case No. 2:24-CV-03018-JRT-DLM, filed in the U.S. District Court for the District of Minnesota on July 30, 2024.”Page 15 of the 2026 FDD, Item 3
Outcome: “On August 19, 2025, the court granted Ameriprise’s motion to compel the investment advisory claims to arbitration and granted Ameriprise’s motion to dismiss the fiduciary duty claim. The court denied Ameriprise’s motion to dismiss the claims of breach of contract, breach of implied covenant of good faith and fair dealing and unjust enrichment. The parties are engaged in discovery.”
Within this matter, as the filing narrates it
Frank R. Tripson, Individually and on Behalf of All Others Similarly Situated v. Ameriprise Financial Services, LLC., et al.
pendingBrought by a third party · names the franchisor · filed 2024-12-31 · U.S. District Court for the District of Minnesota · 0:24-CV-04669
“… Case No. 0:24-CV- 04669, filed in the U.S. District Court for the District of Minnesota on December 31, 2024.”Page 15 of the 2026 FDD, Item 3
Outcome: “The Tripson case was consolidated with the Mehlman case on January 22, 2025. O”
Counted as one matter, the way Item 3 groups it.
Edward D. Jones & Co, LP v. Cory Clem and Ameriprise Financial Services, LLC
pendingfiled 2023-01-26 · FINRA arbitration · 23-0028
“… FINRA Case 23-0028, filed on January 26, 2023. Claimant alleges Clem took confidential and trade secret information when he left Edward Jones and that Ameriprise assisted in the activity.”Page 17 of the 2026 FDD, Item 3
Outcome: “The second week of the FINRA arbitration hearing is scheduled for April 6-10, 2026. B.”
James Theodore Mattson and James Earl Mattson v. Ameriprise Financial Services, LLC, et al.
pendingBrought by a franchisee · filed 2023-10-30 · FINRA arbitration · 23-03152
“… FINRA Case No. 23-03152, filed on October 30, 2023. Claimants are former Ameriprise advisors who allege Respondent advisors poached their customers and violated FINRA rules, MN law and Ameriprise policy.”Page 16 of the 2026 FDD, Item 3
Outcome: “On June 11, 2025, the arbitration panel denied the Claimants’ claims in their entirety. On July 18, 2025, the Mattsons filed a petition to vacate the award, which was denied on November 18, 2025. The Mattsons then filed an appeal of the decision on December 19, 2025, which remains pending.”
Ameriprise Financial Services, LLC v. Robert William Urban v. Clayton Harrison
pendingBrought against a franchisee · filed 2022-12-06 · FINRA arbitration · 22-02783
“… FINRA Case No. 22-02783, filed on December 6, 2022. Claimant’s statement of claim against Respondent Urban, a former franchisee, includes: breach of transition note, breach of working capital note and loan agreement”Page 16 of the 2026 FDD, Item 3
Outcome: “Total outstanding note debt in the statement of claim is $684,955.62. Respondent Urban filed a counterclaim alleging: breach of contract, negligent misrepresentation, prima facie tort and punitive damages in the amount of $500,000. This case is pending FINRA arbitration currently scheduled for June 10-12, 2026.”
Concluded (5)
Ameriprise Financial Services, LLC v Drew Matthew Peacock
judgmentBrought against a franchisee · filed 2025-01-31 · FINRA arbitration · 25-00057
“… FINRA Case No. 25-00057, filed on January 31, 2025. Claimant’s statement of claim against Respondent Peacock, a former franchisee, includes breach of”Page 16 of the 2026 FDD, Item 3
Outcome: “Total outstanding note debt in the statement of claim is $108,997.67. An award has been issued by FINRA in favor of Ameriprise in the amount of $165,562.49.” (page 17)
Ted Lourenco, Individually and On Behalf of All Others Similarly Situated v. Ameriprise Financial Services, LLC, et al.
dismissedBrought by a third party · filed 2024-10-14 · U.S. District Court for the Central District of California · 24-CV-08825-MRA-KS
“… Case No. 24-CV-08825-MRA-KS, filed in the U.S. District Court for the Central District of California on October 14, 2024.”Page 15 of the 2026 FDD, Item 3
Outcome: “Lourenco voluntarily dismissed his claims on May 8, 2025. Th”
SEC settlement reached in August 2018 - failure to adopt and implement policies to safeguard retail investor assets against misappropriation and failure to supervise five representatives (no case caption is printed)
settledGovernment or regulatory action · filed 2018 · U.S. Securities and Exchange Commission
“In August 2018, Ameriprise Financial reached a settlement with the SEC regarding allegations that from 2011 through 2014 the firm failed to adopt and implement policies and procedures reasonably designed to safeguard retail investor assets against misappropriation and failed to reasonably supervise five representatives”Page 17 of the 2026 FDD, Item 3
Outcome: “The firm agreed to pay a civil penalty amount of $4.5 million. The firm further reimbursed all impacted clients for the losses they incurred due to the misconduct.”
SEC settlement reached in December 2017 - negligent reliance on F-Squared Investments, Inc. misrepresentations about ETF portfolios and false statements in advertisements (no case caption is printed)
settledGovernment or regulatory action · filed 2017 · U.S. Securities and Exchange Commission
“In December 2017, Ameriprise Financial reached a settlement with the SEC regarding allegations that from December 2010 through October 2013, the firm negligently relied on misrepresentations made by F-Squared Investments, Inc. regarding certain of its ETF portfolios, and as a result, the firm made false statements about the portfolios in certain advertisements.”Page 18 of the 2026 FDD, Item 3
Outcome: “The firm agreed to pay a disgorgement amount of $6.3 million plus prejudgment interest of $700,000 and a civil penalty amount of $1.75 million.”
FINRA settlement reached in September 2016 - failure to detect and prevent wire transfers from five customers to one of the firm's registered representatives (no case caption is printed)
settledGovernment or regulatory action · filed 2016 · Financial Industry Regulatory Authority (FINRA)
“In September 2016, Ameriprise Financial reached a settlement with FINRA regarding allegations that between October 2011 and September 2013, the firm failed to detect and prevent wire transfers from five of its customers to one of its registered representatives.”Page 18 of the 2026 FDD, Item 3
Outcome: “The firm paid restitution plus interest to the impacted customers and a fine of $850,000. B.”
One proceeding above is indented under the matter it belongs to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 11 Item 3 discloses agree.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | No |
| Exclusive territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | Owner must run it |
| Non-compete (years) | 1 year |
| Right of first refusal | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Arbitration location | FINRA arbitration (location per agreement) |
| Jury trial waiver | Yes |
| Governing law | DE |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 10 hrs
- On-the-job training
- 0 hrs
- Training location
- Online and Region (local RVP/FVP office)
- Ongoing training
- Required
- Site selection
- Franchisee selects, subject to franchisor approval. Must be in commercial or mixed commercial/residential zone; FINRA registration required.
- Franchisor financing
- Offered
- Item 10
- POS system
- AdvisorCompass
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
2,386 current outlets listed
Records carry a phone number, city and state (city on 2,437 of 2,439, state on 2,437 of 2,439). 1 of 2,439 also name the franchisee. 2,439 records: 2,386 current outlets + 53 former owners (terminated, transferred, not renewed or otherwise left). From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 2,386 of the 3,738 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Ameriprise Financial Services, LLC Independent Advisor Business franchise?
Per the 2026 FDD, the total investment to open a Ameriprise Financial Services, LLC Independent Advisor Business franchise ranges from $10K to $138K, with an initial franchise fee of $2K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Ameriprise Financial Services, LLC Independent Advisor Business franchise owners earn?
Item 19 of the Ameriprise Financial Services, LLC Independent Advisor Business FDD discloses outlet figures from $0 to $99.2M but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Ameriprise Financial Services, LLC Independent Advisor Business?
Ameriprise Financial Services, LLC Independent Advisor Business is franchised by Ameriprise Financial Services, LLC. Its parent company is Ameriprise Financial, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Ameriprise Financial Services, LLC Independent Advisor Business FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Ameriprise Financial Services, LLC Independent Advisor Business FDD and qualifies whose outlets they describe.
What is Ameriprise Financial Services, LLC Independent Advisor Business' franchise failure rate?
There is no published franchise failure rate. What is measurable is Ameriprise Financial Services, LLC Independent Advisor Business' SBA charge-off rate: 0.3% on 372 resolved loans. Put plainly: 1 in 333 SBA 7(a) loans to Ameriprise Financial Services, LLC Independent Advisor Business owners charged off (1 of 372 resolved loans, approved since FY1991); loans approved FY2014–FY2023: 1 of 310 resolved loans charged off (0.3%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Ameriprise Financial Services, LLC Independent Advisor Business franchise locations are there?
Per the 2026 FDD, Ameriprise Financial Services, LLC Independent Advisor Business has 3,738 franchised units and 1,724 company-owned (5,462 in all). In the latest year, the number of franchised outlets fell by 117 (52 opened, 133 closed; other Item 20 movements account for the remaining 36).
Is Ameriprise Financial Services, LLC Independent Advisor Business a good franchise to buy?
FranchiseVerdict gives Ameriprise Financial Services, LLC Independent Advisor Business an A Verdict grade (Strongest tier) with a verdict score of 76 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by scale, legal record and transparency. Held back by unit growth (-265 franchised outlets over the two years to 2025: 4,003 to 3,738, -6.6% in total, -3.4% a year compounded). The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
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This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.