Itex Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
ITEX is a B2B barter franchise operating a trade exchange where member businesses buy and sell using trade dollars instead of cash. Franchisees run local exchanges, recruiting members and brokering trades for transaction fees.
FranchiseVerdict summary · 2026
A ITEX franchise requires a total initial investment of $10K – $38K, including a $10K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $10K – $38K
- 3rd pct Business Serv…
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- N/A
- Units
- 33
- 31st pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $10K – $38K including a $10K franchise fee.
- RETURNSFY ended July 31, 2025 (consolidated, in thousands). Income statement reports a single revenue line "Marketplace and other revenue" of $5,440K (2025) vs $6,126K (2024); not separable into other_revenue. Interest income of $233K is reported separately below operating income, not in revenue. Auditor firm name not present in extractable text (signature/logo not OCR'd).
- RISKVerdict A (Strongest tier), verdict score 63/100 (higher is better).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- ITEX Corporation
- CEO title
- Chairman and President
- Steven White
- Incorporated in
- NV
- HQ
- 13555 SE 36th Street, Suite 210, Bellevue, Washington 98006
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $5.4M
- vs $6.1M prior year
Overview
About
- CEO
- Steven White
- Headquarters
- WA
- Founded
- 2002
- FDD year
- 2025
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 91% below the typical business services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 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 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $10K – $38K
- Top 40% of category vs category
- Liquid capital req'd
- $6K – $9K
- Top 40% of category vs category
- Franchise fee
- $10K – $10K
- Top 40% of category vs category
- Royalty
- No royalty fee; ITEX pays franchisees commissions (75%); …
- Ad fund
- -n/d
- Total fee load
- 25.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $2K |
| Renewal fee | $0 |
| Total fee load | 25.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
ITEX did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one ITEX unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
335%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
FY ended July 31, 2025 (consolidated, in thousands). Income statement reports a single revenue line "Marketplace and other revenue" of $5,440K (2025) vs $6,126K (2024); not separable into other_revenue. Interest income of $233K is reported separately below operating income, not in revenue. Auditor firm name not present in extractable text (signature/logo not OCR'd).
Reported for a subset of outlets rather than the whole system
- Item 19 type
- commissions per cycle by member band
- Sample size
- 33
- vs category median 35
- Range (low → high)
- $2K→$10K
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 3 / 10 · below
Compared against 296 Business Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 25.0% — above the Business Services average of 11.9%.
Disclosure
Item 19 reports commissions per cycle by member band rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -8.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 17% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services averages
How Itex Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 33
- Opened
- 2
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 16.7%
- Net growth (3-yr)
- -8.3%
- Net unit change over 3 years
- 3-yr CAGR
- -8.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- 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 · 5 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
One historical matter: 2000 SEC Final Judgment of Permanent Injunction against ITEX and former employees for misstated financial statements in the 1990s (SEC v. ITEX Corporation et al., D. Or., CV 99-1361 BR). No current franchise-related litigation disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 63 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 25.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 150 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 150 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 28 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | King County, Washington |
| Jury trial waiver | No |
| Governing law | WA |
| Litigation count | 1 |
View Item 3 litigation summary
One historical matter: 2000 SEC Final Judgment of Permanent Injunction against ITEX and former employees for misstated financial statements in the 1990s (SEC v. ITEX Corporation et al., D. Or., CV 99-1361 BR). No current franchise-related litigation disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 0 hrs
- Training location
- Online or Bellevue, Washington or designated location
- Ongoing training
- Optional
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- 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
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ITEX · FDD (2025) 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?
ITEX does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the ITEX FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the ITEX FDD and qualifies whose outlets they describe.
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 33 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is ITEX a good franchise to buy?
FranchiseVerdict rates ITEX as a A-grade franchise with a verdict score of 63 out of 100 (higher is better), 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
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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.