Charles Schwab Franchise Cost, Revenue & Review 2026
- Investment
- $104K – $222K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (2)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Charles Schwab's independent-branch franchise lets financial advisors run a local Schwab-branded office offering investing, brokerage, and wealth management. Franchisees build a book of retail clients and assets under management, handling advice, service, and compliance.
FranchiseVerdict summary · 2026
A Charles Schwab franchise requires a total initial investment of $104K – $222K, including a $50K franchise fee. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: 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 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $104K – $222K
- 70th pct Financial Ser…
- Avg gross sales
- N/A
- Projection
- Royalty
- Not extracted
- Units
- 382
- 70th pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $104K – $222K including a $50K franchise fee.
- RETURNSItem 19 reports net new assets and total assets rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (1 opened, 1 closed) (Item 20).
- LEGAL10 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Charles Schwab & Co., Inc.
- Parent company
- The Charles Schwab Corporation
- FDD Item 1, page 10 of the 2026 FDD
- CEO title
- President, Chief Executive Officer and Director (of parent CSC)
- Rick Wurster
- Incorporated in
- CA
- HQ
- 3000 Schwab Way, Westlake, Texas 76262
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $18.1B
- vs $16.2B prior year
Overview
About
- CEO
- Rick Wurster
- Headquarters
- TX
- Founded
- 1971
- FDD year
- 2026
- States available
- 36
Can you afford it, and what does the money buy?
Entry cost runs 73% above the typical financial services franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown15 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
- Bottom third — review vs category
- Liquid capital req'd
- $1K – $2K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- No traditional royalty; asset-based/advisor model; not a …
- Ad fund
- No separate advertising fund or mandatory ad fee. Franchi…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $0 |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Charles Schwab is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Charles Schwab unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
Financial Performance
Not a revenue figure
- Item 19 type
- net new assets and total assets
- Sample size
- 94
- vs category median 94
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 45 Financial Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Item 19 reports net new assets and total assets rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System roughly stable (+3.3% 3-year CAGR) with 382 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Financial Services medians
How Charles Schwab Compares
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.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 382
- Opened
- 1
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.3%
- Company-owned
- 287
- Corporate units in the system
- % franchised
- 25%
- vs corporate-owned
- Net growth (3-yr)
- +3.3%
- Net unit change over 3 years
- 3-yr CAGR
- +3.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 1
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 36 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
36
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
6 current owners across 2 states.
- CO 5
- FL 1
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (2)
- Insufficient SBA coverage: 2 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (2)
- 5-yr charge-off
- Under 10 loans (2)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Regulatory actions and civil litigation including SEC, FINRA, CBOE, and state regulatory settlements primarily involving brokerage regulatory compliance, order routing, and trade reporting. Two pending FINRA arbitrations involve former franchisees disputing franchise agreement termination/non-renewal (Weltz 2025, Dissel 2025). Largest settlement was SEC 2022: ~$52M disgorgement plus $135M civil penalty for robo-advisor disclosure issues.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financial statements of Charles Schwab & Co., Inc. as of December 31, 2025 (Exhibit I), stated in millions. Total net revenues of $18,081M comprise net interest revenue, asset management/administration fees, trading revenue, bank deposit account fees, related-party fees, and other ($692M). Auditor since 1976; report dated February 26, 2026.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 74 / 100 verdict
- 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
- 04MINORUnprotected territory means franchisees compete directly with other Schwab franchisees and the parent company's direct operations
- 05MINORDocumented arbitrations with former franchisees regarding termination/non-renewal suggest contentious franchisor-franchisee relationships
- 06MINOR7-year term with no territory protection creates exit risk and customer acquisition competition
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 2 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | Yes |
| Arbitration location | FINRA offices closest to the Franchise Branch (for FINRA-jurisdiction disputes); litigation in state/federal courts in the county where FBO operates |
| Jury trial waiver | Yes |
| Governing law | State where FBO operates the Franchise Branch |
| Litigation count | 10 |
View Item 3 litigation summary
Regulatory actions and civil litigation including SEC, FINRA, CBOE, and state regulatory settlements primarily involving brokerage regulatory compliance, order routing, and trade reporting. Two pending FINRA arbitrations involve former franchisees disputing franchise agreement termination/non-renewal (Weltz 2025, Dissel 2025). Largest settlement was SEC 2022: ~$52M disgorgement plus $135M civil penalty for robo-advisor disclosure issues.
Items 10, 11
Training & Operations
- Classroom training
- 37 hrs
- On-the-job training
- 12 hrs
- Training location
- Web-based online (Orientation and Products & Advice modules); Activation Summit at Schwab service centers in Phoenix, Denver, Indianapolis, Westlake, or Orlando (or virtually)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisor
- 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
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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?
Item 19 of the Charles Schwab FDD discloses figures for part of the system 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 Charles Schwab?
Charles Schwab is franchised by Charles Schwab & Co., Inc.. Its parent company is The Charles Schwab Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Charles Schwab 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 Charles Schwab FDD and qualifies whose outlets they describe.
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 95 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 A-grade franchise with a verdict score of 74 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.