From the filed FDD — automated extraction, check the source
2024 FDD · 1+ year old
Ameriprise Financial Services
Financial advisory · parent company: not identified
Ameriprise Financial is a financial-planning and wealth-management firm whose advisors help clients with retirement planning, investments, and insurance. Advisors build long-term financial plans for individuals and families. A franchise-style advisor operates a local practice under the Ameriprise brand, serving clients and managing their portfolios.
Ameriprise Financial Services net unit count declined 4.4% over 2021–2023 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Proven & steady
On Item 20 alone this record falls below our threshold — units fell 4% (2021–2023: 6,016 → 5,754); the fiscal 2023 exit rate was 4.3%, below the 6.0% median across 48 comparable systems (business services) — but SBA loans to its franchisees approved FY2006–2020 charged off far less often than franchise loans of the same years (1 vs about 43 expected, 0.02×). A loan record that strong, over that many years, outweighs a soft recent operating record, so we rate it steady rather than weaker.
Exit rate · fiscal 2023
4.3%
vs 6.0% median across 48 comparable systems (business services)
Cost to open
$12K–$133K
Item 7 total investment range
SBA loan losses · vs same-year loans
0.02×
1 of 387 charged off vs ~43 expected
Market density · California
Dense market
23% denser than the national average
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Data as of 2026-10-29. Figures come from Ameriprise Financial Services's public FDD filings (latest: MN 2024, extracted 2026-06-18) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
Where the sources disagree
FDD record · SBA loans · model · auditor
The recent Item 20 record is soft, but decades of franchisee loans that defaulted far less often than same-year loans carry more weight, so we rate it steady.
FDD record · Item 20
Weaker operating record
Units fell 4% (2021–2023: 6,016 → 5,754); exit rate 4.3% (fiscal 2023) vs 6.0% median.
SBA loans · vs same-year loans
Far fewer defaults than expected (0.02×)
1 charge-offs among 387 resolved loans approved FY2006–2020; about 43 expected.
Modeled risk
Lower risk
The brand's own loan record contradicts this prediction; the record leads.
Auditor opinion · Item 21
Not extracted
We did not extract the audit opinion.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness · shown, not counted in the verdict
Systemwide units
2021–2023
Survival record
FDD Item 20 · outlet status by year
In fiscal 2023, 179 of 4,133 franchised outlets left the system — an exit rate of 4.3% (fiscal 2023), vs a 6.0% median across 48 comparable systems (business services). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 6,020 | 5,990 | 5,839 |
| Opened | 33 | 49 | 49 |
| Transfers | 555 | 610 | 584 |
| Terminations | 110 | 144 | 178 |
| Non-renewals | 0 | 3 | 1 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 6,016 | 5,888 | 5,754 |
| Net change | -4 | -102 | -85 |
The lender's view
SBA 7(a)/504 loan outcomes · compared with franchise loans of the same years
Banks have made 544 SBA-backed loans to Ameriprise Financial Services franchisees since 2006. Of the 387 approved FY2006–2020 that have resolved, 1 charged off — where about 43 would be expected for franchise loans made in the same years. That is 0.02× the expected rate: these loans defaulted far less often than comparable franchise loans.
All-time, 1 of 412 resolved loans charged off (0.2%). That raw figure mixes every approval year since 2006 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score.
0.02×
1 of 387 resolved (FY2006–2020) vs ~43 expected
0.2%
1 of 412 resolved, every approval year
—
charged-off $ ÷ approved $, defaulted loans
$933,608
what recent franchisees borrowed
—
shown with 10+ defaults
10 vs 17
distinct banks — fewer than FY16–20 (loan volume and SBA name coding affect this)
Charge-off rate by loan approval year (%) · dashed line = all franchise loans that year
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO AMERIPRISE FINANCIAL SERVICES BY SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD
The owner's side of the deal
FDD × federal loan record
Who finances it
Live Oak Banking Company
57.4% of this brand's loans
That lender charges off 5.5% of its resolved SBA loans to other franchise brands in the FOIA file, vs 14.8% nationally — a read on that lender's portfolio mix, not a finding about the bank.
Who buys it
74.9%
borrowers with no other franchise SBA loan on record
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators have charged off less often than brands sold mostly to newcomers (see methodology).
Does experience help here?
−0.3pp
multi-unit vs single-unit owners
Owners of multiple units default at 0.0%; single-unit owners at 0.3% (each on 15+ resolved loans, owners identified by borrower-name matching).
Computed from 544 SBA 7(a)/504 loans matched to Ameriprise Financial Services by SBA franchise code in the SBA FOIA file. Debt service assumes level amortization at the average disclosed term and rate. Owner-level splits rely on borrower-name matching and may misclassify. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $1,500 franchise fee (Item 5) and a total investment of $12K–$133K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$12K–$133K
all-in investment range
Franchise fee (Item 5)
$1,500
upfront, one-time
Royalty (Item 6)
See Item 6
not a single flat % — read the fee table
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, rent, supplies, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for Ameriprise Financial Services with a buyer-paid CPAHow the earnings claim is built
FDD ITEM 19 · BASIS · 2024 FDD
Item 19's tables are images in this filing, so we could read who is included but not every figure. Open Item 19 in the PDF.
Show the basis ↓Hide the evidence ↑
| What is measured | Annual Total GDC (Gross Dealer Concession) and Average Gross Income by GDC production level (other measure) |
| Period | 2023 (Dec 28, 2022 - Dec 26, 2023) |
| Whose results | Franchised outlets |
| Units included | 3,996 of 4,003 franchised outlets at the end of FY2023 (Item 20) |
| Left out |
|
| Average (mean) | not printed |
| Median | not printed |
| Costs shown | None — sales only |
| Where | p. 50 (Item 19 runs pp. 50–63) |
| The filing's words | “Only Independent Advisors who were active as of December 2023 are included.” |
Modeled risk
FDD Risk Score · a prediction from disclosure and loan-file features
This brand's own loan record is better than the model predicts: its franchisees' SBA loans charged off at 0.02× the rate of same-year franchise loans, where the model expects about 0.6×. We lead with the observed record; the model is shown for context.
Observed · vs same-year loans
0.02×
1 of 387 seasoned loans charged off
Risk percentile
Lower risk
Directional · no point estimate
Modeled · vs same-year loans
band only
too few seasoned loans to check
Top drivers: System size (log units) (lowers) · Share financed by high-loss lenders (lowers) · Investment ceiling (log) (raises) · Item 20 exit rate (lowers). The observed record differs from the model, so treat the score as context only. A linear scorecard trained on brands' vintage-adjusted SBA loss records; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
Filed against the franchisor · CourtListener/RECAP ↗ · 18mo ago
Filed by the franchisor · CourtListener/RECAP ↗ · 20mo ago
Filed by the franchisor · CourtListener/RECAP ↗ · 24mo ago
Filed by the franchisor · CourtListener/RECAP ↗ · 27mo ago
Filed by the franchisor · CourtListener/RECAP ↗ · 29mo ago
9 questions to ask an Ameriprise Financial Services franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These questions come from what Ameriprise Financial Services has disclosed. Each one carries the number it came from, so you can check the answer against the record.
- 01
Ameriprise Financial Services’ own Item 20 shows 179 of 4,133 franchised outlets left the system in fiscal 2023 — about 4.3%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2023
- 02
584 units transferred to new owners in fiscal 2023. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.
FDD Item 20 · FY2023
- 03
The system went from 6,016 units to 5,754 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2021–FY2023
- 04
SBA loans to Ameriprise Financial Services franchisees approved 2006–2020 defaulted far less often than franchise loans made in the same years: 1 charge-off among 387 resolved loans, where about 43 would be expected (0.02×). Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of how these loans ended, from public federal records matched by SBA franchise code — independent of anything the franchisor discloses — compared with franchise loans made in the same years. A charge-off is a loan outcome, not proof the business closed.
SBA 7(a)/504 loan record, seasoned loans FY2006–FY2020 · 0.02× of same-vintage franchise loans
- 05
Ameriprise Financial Services makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2024
- 06
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 07
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 08
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 09
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Ameriprise Financial Services’ numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Ameriprise Financial Services’ numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Ameriprise Financial Services franchise questions, answered from the filings
How many Ameriprise Financial Services franchised outlets left the system last year?
In Ameriprise Financial Services's latest FDD Item 20 (fiscal 2023), 179 of 4,133 franchised outlets left the system — an exit rate of 4.3% — compared with a 6.0% median across 48 comparable systems (business services) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.
How much does a Ameriprise Financial Services franchise cost?
Per Ameriprise Financial Services's 2024 FDD, buying in requires an initial franchise fee of $1,500 (Item 5) and a total initial investment of $12K–$133K (Item 7).
Does Ameriprise Financial Services disclose earnings (Item 19)?
Yes — Ameriprise Financial Services makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for Ameriprise Financial Services franchises default?
SBA loans to Ameriprise Financial Services franchisees approved 2006–2020 defaulted far less often than franchise loans made in the same years: 1 charge-off among 387 resolved loans, where about 43 would be expected (0.02×). All-time, 1 of 412 resolved loans since 2006 charged off (0.2%); that raw figure mixes every approval year, so we compare with same-year loans instead. A charge-off is a loan loss, not proof the business closed. Source: public SBA 7(a)/504 FOIA data.