ItexFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A ITEX franchise requires a total initial investment of $10K – $38K, including a $10K franchise fee and an ongoing 25.0% royalty[2]. Per the 2026 FDD, average unit revenue was $6K[2]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $10K – $38K
- 2nd pct Business Serv…
- Avg gross sales
- $6K
- 0th pct Business Serv…
- Royalty
- 25.0%
- 34th pct Business Serv…
- Units
- 33
- 26th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.3x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchised units fell from 43 to 33 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $10K – $38K including a $10K franchise fee, 25.0% ongoing royalty.
- Average unit revenue of $6K/year.
- Verdict D (Below Average) with a risk score of 70/100.
- System contracting at -8.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ITEX CORPORATION
- Incorporated in
- NV
- HQ
- 13555 SE 36th Street, Suite 210, Bellevue, Washington 98006
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $6.1M
- vs $5.4M prior year
Overview
About
ITEX franchisees operate local barter exchanges that facilitate non-cash transactions between member businesses. Day-to-day operations involve recruiting business members, matching trade opportunities, processing transactions, and collecting fees on completed exchanges. Franchisees earn only 75% of transaction fees collected (franchisor retains 25%), making success entirely dependent on driving transaction volume in their territory.
- CEO
- Steven White
- Headquarters
- WA
- Founded
- 1985
- FDD year
- 2026
- States available
- 18
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $6K | $9K |
| Equipment, build-out, other | $0 | $19K |
| Total initial investment | $10K | $38K |
Source: ITEX 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$-311
-5.0% margin
Unlevered ROIC
-1%
EBITDA / total invested capital
Payback
—
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $10K – $38K
- Better than avg vs category
- Liquid capital req'd
- $6K – $9K
- Better than avg vs category
- Franchise fee
- $10K
- Better than avg vs category
- Royalty
- 25.0%
- typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 25.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 25.0% of gross sales |
| Transfer fee | $2K |
| Renewal fee | $0 |
| Total fee load | 25.0% of rev |
At 25.0% total fee load, roughly $2K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $6K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Average and Median Commissions per bucket
- Sample size
- 33 units
- vs category median 32
- Range (low → high)
- $2K→$10K
- Cohort dispersion (min → max)
- Quartile band
- $2K→$10K
- Bottom 25% → top 25%
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 3 / 5 · below
Compared against 360 Business Services brands
Revenue is only 0.3x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Business Services averages
How Itex Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 33
- Opened
- 0
- Last reporting year
- Closed
- 2
- Turnover rate
- 6.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 16.7%
- Net growth (yr3)
- -5.7%
- Net unit change last year
- 3-yr CAGR
- -8.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 2
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 2
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 5.6%
- Owners selling to other franchisees
- Termination rate
- 5.6%
- Franchisor-initiated terminations
- Ceased ops
- 5.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Illinois
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
ITEX is a declining barter exchange franchise with a history of SEC fraud, no financial transparency, unsustainable commission-only economics, and a shrinking unit base suggesting the business model is broken.
Litigation (Item 3)
1 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 70 / 100 rating
- 01MEDSystem shrinking: 5.7% unit decline YoY with only 33 locations suggests dying franchise model
- 02HIGHSEC fraud history: 2000 judgment for misstated financials indicates historical credibility issues with franchisor
- 03MINORNo financial disclosure: Average revenue and net income not provided in FDD Item 19 prevents ROI validation
- 04MEDUnsustainable commission structure: 25% royalty on transaction fees only (not gross revenue) creates thin, unpredictable income dependent on franchisee hustle
- 05MINORNo territory protection: Open territory invites internal competition and cannibalization among 33 remaining franchisees
- 06MINORDecaying unit base: Lost 2 locations in past year; franchise likely entering death spiral if trend continues
- 07MINOR5-year term is short: Minimal time to recoup $10K-$37.7K investment before renegotiation uncertainty
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Washington |
| Litigation count | 1 |
View Item 3 litigation summary
1 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 0 hrs
- Training location
- Online at office/home or corporate facilities in Bellevue, Washington
- Ongoing training
- Required
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Trade Exchange Account Manager (TEAM)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Trade Exchange Account Manager (TEAM)
Item 20 · call current owners
Franchisee Contacts
64 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ITEX · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ITEX franchise?
The total investment to open a ITEX franchise ranges from $10K – $38K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ITEX franchise owners earn?
According to Item 19 of the ITEX FDD, the average gross sales per unit is $6K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is ITEX's franchise failure rate?
SBA 7(a) loan charge-off data is not available for ITEX (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many ITEX franchise locations are there?
As of their most recent FDD filing, ITEX has 33 total units in the United States, including 43 franchised units and 0 company-owned units.
Is ITEX a good franchise to buy?
FranchiseVerdict rates ITEX as a D-grade franchise with a risk score of 70 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent ITEX, you can request corrections or provide updated information.
Claim this brandOther Business Services franchises
Compare similar franchise opportunities in the Business Services category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.