Schwab is giving independent advisors the chance to franchise local Schwab branches.

Called the "Independent Branch Services" program, it offers independent advisors a Schwab support package that includes a small list of starting clients, financial support and a company turnkey equipped with Schwab technology.

Schwab will also provide a "seed list" of 25 to 50 current Schwab clients and a revenue and expense sharing structure that offers support in the early years of the business.

Other Schwab support includes a local marketing program in which Schwab will match advisor expenditures dollar for dollar, and customized training and support.

Independent advisors who are awarded franchises will pay Schwab an initial investment of between $25,000 and $50,000.

Schwab plans to have five to ten franchise branches operating by the end of the year, and double that number in 2012. Schwab's goal is to double that figure in each of the next two years, said Andrew Salesky, senior vice president of Schwab's new Independent Branch Services program.

Salesky dismissed industry skepticism that Schwab's new franchise plan could hurt existing company affiliates.

"Our view is that it will not," Salesky said. "We're not changing our company strategy by opening up this opportunity to independent franchises. The mass affluent strategy that we use across our company-managed branches is the same strategy we'll use with these new locations."

Schwab first outlined its franchise plan at the company's analyst update meeting in February, he said.

Franchise branches will offer the same products, pricing, and services as the company-managed Schwab branches, with the same mass-affluent target market. The difference is that the branches will be advisor-operated and run as a franchisee, according to Schwab.

"We believe the time is right to expand distribution," Salesky said. "This is a story of our tapping the Schwab brand that is largely undistributed in many smaller communities where there is no face of Schwab."

Schwab will evaluate locations to determine if they are financially attractive locations for opening a franchise, he said. "Candidates will come to us and propose a market," Salesky said. "It will be a market that they will have to be well connected to and have strong knowledge of."

Schwab will evaluate franchise market proposals to see if they meet its criteria, Salesky said.

Independent advisors are limited to opening only one franchise.

"We're focused on having independent branch leaders that are committed to their single location," Salesky said.

Schwab's local marketing support includes a marketing match program on a quarterly basis, he said.

"For every $1,000 an independent spends, it will receive a matching $1,000 from Schwab," Salesky said.

-Jim McConville