But if it can find individuals who want to be owner-operators—you know, the kind of people who, unlike employees of a big company, come in at 5 a.m. and work until 7 p.m.—and who are willing to start de novo branches in locations where Schwab branches currently do not exist, it can rapidly and cost efficiently expand its national footprint and capture a much larger share of the individual investor market.

Certainly like any new program, Schwab is still figuring out its long-term approach to franchising, and the first few years of this program have had more than a few kinks. We also believe that this opportunity makes the most sense for a potential franchisee only if Schwab will allow him or her to ultimately own and operate multiple de novo branches.

But we have little doubt that Schwab will figure all this out and individual franchisees will ultimately get to own many locations. We also are willing to bet that Schwab ultimately will sell the 300 branches it operates today to its most successful franchisees. Keeping and running these branches for any big company will at best be a low-return proposition over the long term.

When we first heard about the franchising program, it struck us that in many ways it is similar to the mother of all franchising opportunities: getting a McDonald’s 50 years ago. Back then, families rarely ate out and then typically only at local restaurants. In the late ’50s and early ’60s, Ray Kroc figured out that over time, eating out was about to become more popular. And if someone could provide a consistent product with a national brand, clients would flock to it.

A relatively small number of entrepreneurs recognized the opportunity, launched their own franchises and benefitted from the revenue wave that accompanied a shift in Americans’ eating habits. Many built substantial fortunes doing so.

However, the Schwab franchisee opportunity strikes us as much less risky than starting a McDonald’s in the 1960s. Schwab is already one of the strongest brands in the United States, and prospective clients already flock to their branches.

Moreover, right at the point that the economics of servicing those clients are about to become immensely more favorable for branch owners, there is an opportunity to own one.

Certainly, becoming a Schwab franchisee is not for everyone. It is a very different role than being a financial advisor, and our sense is that people with the personalities to do well in that field probably would not do very well as franchisees. However, for those individuals whose personalities and skill sets are better suited to owning and operating some sort of franchised business, this appears to be an incredible opportunity.

Mark Hurley co-founded Fiduciary Network in 2006 and serves as its CEO. Yvonne Kanner is the firm’s president and chief operating officer.

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