Charles Schwab & Co. Inc. is looking for entrepreneurs who want to buy a piece of the Schwab name.

The company has created an owner-operated franchise network that allows financial professionals to own their own business but have the backing of the well-known custodian. The program also allows Schwab to get its name into areas where there has been no Schwab branch and make its services and products available to more people.

Since the first franchise opened in Nashua, N.H., in December 2011, 25 franchises have been opened across the country, with a 26th scheduled for late this year. The franchise offices are growing and exceeding asset gathering expectations, says Craig Taucher, senior vice president of independent branch services for Schwab.

The owner-operators come from a wide range of backgrounds, including independent firms and wirehouses. In order to own a franchise, a person has to have 10 years of experience as a financial service professional, including as a financial advisor. He or she must also have strong ties to the community and must have financial licenses and life/health and annuity insurance licenses. There must not be another Schwab office in the area and the target community must have a high number of affluent households.

The program works sort of like a McDonald’s, but, instead of selling Big Macs and special sauce, the franchisee is handing out financial advice and services. It is the latest way to spread the Schwab brand name and attract entrepreneurial financial professionals to Schwab, says Taucher. The franchisees can be registered investment advisors or other financial professionals.

The franchise program gives advisors a third way to associate themselves with Schwab. “Some financial professionals want to be employees, and we have a place for them,” says Taucher. “Others want to be totally independent, and we have a place for them through our advisor platform, where the advisors operate independently under their own names.

“But some advisors are entrepreneurs who want to operate their own business but want the support a company like Charles Schwab can provide,” he says.

Mark Hurley, co-founder and CEO of Fiduciary Network, a resource and consulting firm for independent wealth managers and a contributor to Financial Advisor, says the franchise idea may have come along at just the right time. The competition for new clients in the financial industry is increasing and becoming more expensive. Franchise owners have the advantage of operating under a well-known name at a time when it is important to have good marketing tools to attract new clients, he says.

“For the right person, getting one of these franchises is an incredible opportunity to make a lot of money without taking a tremendous amount of risk. The wealth management industry is on the verge of a seismic shift in what it costs to capture new clients, and this shift is going to make owning a Schwab branch very attractive,” Hurley says.

Advisors pay $25,000 to $50,000 for the franchise, plus they must have capital available to establish the office. They then pay a monthly fee for the Schwab services. The financial professionals who run the franchises are known as independent branch leaders. They can only own one franchise.

The same Schwab products and services are offered at each franchise, and Schwab does the back-office and compliance work, as well as marketing, and provides infrastructure and customer support.

But the advisor who owns the franchise has the ability to hire and fire employees and build equity in the business that can be sold or passed to a family or staff member when he or she gets ready to retire.

One franchise office has been opened in Las Cruces, N.M., by Jackie M. Edwards, who accidently stumbled into her new role. A former corporate lawyer who then went to a wealth management practice, Edwards was looking for another change. While researching the possibility of starting her own firm, she saw a small add in a financial trade magazine for the Schwab franchise program.

“It seemed like a good business opportunity and at the same time it was a chance to help people create the life of their dreams,” says Edwards. “I wanted to be a business owner who contributes to the well being of the community.”

Edwards is the sole financial professional and she has an assistant, but she says she attends job fairs at the locals university to see if she can spot the right kind of young person who could join her.

Michael Wytiaz opened the third Schwab franchise in Windermere, Fla., near Orlando and says he would counsel any financial professional who feels he wants to be a business owner to take the next step and purchase a franchise without hesitation.

“Within the business model Schwab provides, I own my own business; I am not an employee,” says Wytiaz. “I pay my own bills and have the responsibilities that come with a business.

“I own the equity and I can pass the business on to my family if I want. I have two children in college who are interested in coming into the business. Owning a franchise enables me to create a legacy,” he says.

Wytiaz says he has strong ties to his community and his business has grown to the point where he needs to hire another advisor in addition to himself. His wife and son already work with him as customer service specialists.

The franchise concept is still in its infancy and Schwab is deciding how big it wants it to become, Taucher says.

“We want to get the business model right and make sure it is scalable, and then we have to pick the right candidates who are entrepreneurs to own the franchises,” he says.

For more information on joining the program, visit www.schwabfranchise.com.