Charles SchwabFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Charles Schwab franchise requires a total initial investment of $104K – $222K, including a $50K franchise fee and an ongoing 0.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $104K – $222K
- 56th pct Financial Ser…
- Avg gross sales
- N/A
- 30th pct Financial Ser…
- Royalty
- 0.5%
- 0th pct Financial Ser…
- Units
- 382
- 56th pct Financial Ser…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Financial Services · color = vs category peers
Green = >15% above Financial Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
10 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $104K – $222K including a $50K franchise fee, 0.5% ongoing royalty.
- Item 19 discloses "Adjusted Revenue on Client Assets (ROCA) and Net New Assets (NNA)" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict F (Bottom Quintile) with a risk score of 85/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- CHARLES SCHWAB & CO., INC.
- Parent company
- The Charles Schwab Corporation (“CSC”)
- Incorporated in
- CA
- HQ
- 3000 Schwab Way, Westlake, Texas 76262
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $16.2B
- vs $18.1B prior year
Overview
About
Charles Schwab franchisees operate licensed financial services offices providing investment advice, brokerage services, and asset management to retail and institutional clients. Day-to-day activities include client acquisition, portfolio management, compliance with securities regulations, and generating assets-under-management (AUM) to support the 50% asset-based royalty structure.
- CEO
- Rick Wurster
- Headquarters
- TX
- Founded
- 1971
- FDD year
- 2026
- States available
- 36
FDD Item 7 · 2026 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $50K | $50K | |
| Initial Training Travel & Expensesnot refundable | $2K | $4K | |
| Start-up Suppliesnot refundable | $200 | $600 | |
| Business Licensesnot refundable | $50 | $2K | |
| Association Feenot refundable | $2K | $2K | |
| Activation Branch Feenot refundable | $5K | $9K | |
| Sublease Rentnot refundable | $6K | $33K | |
| Facilities Feenot refundable | $16K | $56K | |
| Branch Hardware and Connectivity Service Feenot refundable | $4K | $9K | |
| E&O Insurance Feenot refundable | $1K | $5K | |
| Additional Insurancenot refundable | $250 | $2K | |
| Travel and Entertainmentnot refundable | $600 | $2K | |
| Activation Branch Local Marketingnot refundable | $2K | $7K | |
| Local Marketingnot refundable | $15K | $38K | |
| Additional Funds - Initial Periodnot refundable | $1K | $2K | |
| Total initial investment | $104K | $222K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $104K – $222K
- Near category avg vs category
- Liquid capital req'd
- $1K – $2K
- Better than avg vs category
- Franchise fee
- $25K – $50K
- Near category avg vs category
- Royalty
- 0.5%
- Revenue share payout model (Net Payout) · typical 6–8%
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 0.5% of gross sales |
| Technology fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $0 |
Financial Performance
This brand's FDD disclosed "Adjusted Revenue on Client Assets (ROCA) and Net New Assets (NNA)" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Financial Services averages
How Charles Schwab Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 382
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 287
- Corporate units in the system
- % franchised
- 25%
- vs corporate-owned
- Net growth (yr3)
- +3.3%
- Net unit change last year
- 3-yr CAGR
- +15.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Virginia
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $770K
- Median loan
- $385K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Charles Schwab's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Charles Schwab franchising presents HIGH RISK due to extreme 50% royalties, shrinking unit base, regulatory entanglements, absent financial disclosures, unprotected territories, and documented franchisee disputes.
Litigation (Item 3)
1 case reference(s): 0 pending, 3 settled.
Largest disclosed settlement: $135
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 85 / 100 rating
- 01MINORRoyalty structure of 50% of Asset-Based Revenue is extremely high and creates severe profit margin compression for franchisees
- 02MINORFranchise system contracted 3.3% YoY despite parent company stability, indicating franchisee dissatisfaction or unsustainable unit economics
- 03HIGHMultiple regulatory settlements (SEC, FINRA, state securities boards) and class action litigation signal compliance and operational risks that franchisees inherit
- 04MINORNo financial disclosure (Avg Revenue, Avg Net Income, Item 19) prevents transparency and makes ROI projections impossible to validate
- 05MINORUnprotected territory means franchisees compete directly with other Schwab franchisees and the parent company's direct operations
- 06MINORDocumented arbitrations with former franchisees regarding termination/non-renewal suggest contentious franchisor-franchisee relationships
- 07MINOR7-year term with no territory protection creates exit risk and customer acquisition competition
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 2 |
| Territory type | non_exclusive |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | The state in which you operate your Franchise Branch |
| Litigation count | 10 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 3 settled.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 48 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Not offered
- Item 10
- POS system
- Schwab Technology System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Schwab Technology System
Item 20 · call current owners
Franchisee Contacts
22 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Charles Schwab · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Charles Schwab franchise?
The total investment to open a Charles Schwab franchise ranges from $104K – $222K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Charles Schwab franchise owners earn?
Charles Schwab does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Charles Schwab's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Charles Schwab (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Charles Schwab franchise locations are there?
As of their most recent FDD filing, Charles Schwab has 382 total units in the United States, including 82 franchised units and 287 company-owned units. 1 new units were opened in the latest reporting year.
Is Charles Schwab a good franchise to buy?
FranchiseVerdict rates Charles Schwab as a F-grade franchise with a risk score of 85 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.