Early last month, Schwab (SCHW) made public plans to franchise its brand name, opening branches across the country run by independent advisors.
While short on details, the online broker and fund manager is reportedly hoping to launch the new offices in the third quarter. The company now operates about 300 branches and client service centers around the country.
The problem some see is that Schwab runs the risk of competing against itself and mudding its name as a service provider. “Any move into traditional retail represents a major branding challenge,†Brad Hintz, a Sanford Bernstein analyst, told Reuters. “Chuck needs to tread carefully around this action. I’m skeptical.â€
The report noted that… read on.