Schwab opens newest independent branch

The Charles Schwab Corp. has opened its newest franchised branch office. Based in Windermere, Fla., near Orlando, the new office opened at the end of May, said Schwab spokesman Michael Cianfrocca. The franchisee, Michael Wytiaz, is a 30-year industry veteran most recently with Touchstone Securities Inc. Mr. Cianfrocca said the company has “a number of others in the pipeline,” but declined to be more specific. Last month, Schwab chief executive Walt Bettinger told analysts that the firm had signed on at least two more franchisees. Schwab's unique franchising effort is being closely watched to see if it's a viable way for the discount broker to expand into suburban locations. Critics of the program have said it isn't competitive with other independent options, since established Schwab franchises must split revenues 50-50 with Schwab, but are responsible for rent, salaries and some other expenses. The firm is recruiting established advisers with smaller practices to buy into the franchise, with the goal of building asset bases of $100 million or more using the Schwab brand. The firm is looking to have about a dozen offices open by year-end.