Fracture Heart is set multiple generations from the stories of RWBY. The world has changed greatly since the death of Remnants greatest heroes, they left behind their own children to carry on their stories and from there generations passed. With the wizard missing within the far corners of Remnant and Salem lurking in the dark quarters of Anima, life has been quiet until a few years ago.
In the last generations the White Fang has disbanded as equality for both races has finally beeing resolved in Remnant, a new group of Faunus had joined to together to change Remnant once again. They took on the Sabertooth, after the great tales of a creature that tread the world before humanity. They've begun to cause riots and destory property of known business that could prove their actions.
After Weiss Schnee took back her rightful place as heiress of the Schnee Dust Company, her younger brother broke off the main branch of the Schnee family. He began to make his own company know as Schnee Industries, they focus on dust based weapons and vehicles. As the generations passed, SDC became better know for their alliance with the White Fang and aiding faunus in need. However, Schnee Indrusties went in the oppisite direction; using underground ways to smuggle faunus to work in their factories with little money and abuse.