From the filings
Charles Schwab's franchise branches must use the Schwab Technology System exclusively and may not use any other software, hardware, or technology services, per the FDD's Item 8 supplier restrictions. With 382 locations — 287 company-owned, 95 franchised — and a single, closed technology stack, the buying decision for anything touching the branch runs entirely through Schwab headquarters.
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Complete royalty terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Franchisor behaviours
18 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 10 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have continuous unlimited remote access to data pertaining to Franchise Branch Clients so that we may satisfy regulatory and business processing requirements and verify your compliance with the Franchise Agreement.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesItem 15
Upon request, at your own expense within 20 days after the end of each calendar quarter, you must prepare and submit to us a profit and loss statement and balance sheet showing the results of operation of the Franchise Branch business for the most recent calendar quarter and cumulative information for the calendar…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Certain Schwab Products & Services are proprietary and exclusively offered by us or our affiliates.
Is there a franchisee advisory council, association or committee?
YesItem 11
In 2024 we established the Schwab Franchise Working Group (“SFWG”) comprised of franchisees who make recommendations to us and provide us with feedback about strategic initiatives and Schwab System issues and improvements generally, which may include advertising and marketing matters.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We reserve the right to modify and change the Schwab Technology System at any time without notice.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
28725709Item 8
During 2025, we derived approximately $28,725,709 in revenue from FBOs’ purchases and leases of products and services, which represented less than 1% of our total net revenues of $18,081,000,000.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We will also derive revenue based on trading activities by Franchise Branch Clients who will maintain their accounts at Schwab and buy and sell securities and investment products through Schwab.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
95Item 8
We estimate that your purchases or leases from approved vendors (including us and our affiliates) or in accordance with our specifications will represent 95% or more of your total purchases and leases to establish your Franchise Branch and, afterwards, approximately 95% or more of your total monthly purchases and…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Schwab will have the right to demand an assignment of the telephone and facsimile numbers and listings, in which case FBO will be deemed to consent to the assignment, without compensation, as of the Effective Date of Termination or Expiration.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
FBO must maintain an average Client Promoter Score during the remainder of the Term of 45 points (out of maximum 100 points) based on a random sampling that Schwab or a third-party conducts of Franchise Branch Clients assigned to FBO’s Franchise Branch.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
oversight includes supervising your brokerage activities remotely and on-site in addition to our general inspection and audit rights under the Franchise Agreement to confirm compliance with all of the terms and conditions of the franchise (including duties that are not regulatory-specific).
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may modify the Confidential Manuals at any time without prior notice and the changes will become effective immediately unless we specify a later effective date.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Schwab, in Schwab’s sole discretion, may review alternative sites that FBO wishes to propose.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You may not use any other software, hardware or technology services to operate the Franchise Branch.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have continuous unlimited remote access to data pertaining to Franchise Branch Clients so that we may satisfy regulatory and business processing requirements and verify your compliance with the Franchise Agreement.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 16
you must use the Schwab Technology System and other methodologies we designate that distinguish the Schwab System.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may also charge you a fee for additional voluntary training programs.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
We may make attendance by franchisees and their employees mandatory at the particular Network Meetings that we designate, but will not require that you and your employees attend more than an aggregate total of 4 days of Network Meetings per year.
Charles Schwab franchises 382 locations in the financial-services segment — 287 company-owned, 95 franchised — under an initial term that typically runs about 7 years. Franchised outlets held flat year over year, and Item 19 of the FDD makes a financial performance representation.
Item 2 names Charles Schwab as Founder and Co-Chairman of the Board. The franchised operator base is entirely single-unit: 98 mapped operators run roughly 98 locations, with Florida, Illinois, Texas, Indiana, and Georgia holding the largest clusters.
Charles Schwab's Item 8 supplier restrictions require every Franchise Branch to use the Schwab Technology System exclusively, in the manner Schwab requires, and state that a Franchise Branch Owner may not use any other software, hardware, or technology services. That single, closed system covers the technology stack for the branch.
Charles Schwab's Item 8 model is designated suppliers only: all brokerage activity must run through Schwab Products & Services, the Franchise Branch Premises are subleased from Schwab, leasehold improvements and equipment are completed solely by Schwab or its contractors, and E&O insurance runs through Schwab's third-party carrier arrangement. The initial term ends with the Sublease's initial term, typically about 7 years; renewal requires notice 13 to 14 months before expiration, no more than 3 default notices during the current term, and an agreement to pay for updating the branch to Schwab's then-current imaging and technology requirements.
The embedded PDF viewer below holds Charles Schwab's 2026 Franchise Disclosure Document in full. Talk to FranCloud for a ranked list of franchise systems that match this profile.
Complete royalty terms are not confirmed.
Questions vendors ask
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Operator footprint
98 operators run 98 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| FL | 9 |
|---|---|
| IL | 7 |
| TX | 7 |
| IN | 6 |
| GA | 5 |
Ownership
Parent company: The Charles Schwab Corporation.
Related Financial services brands
Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.