Itex Franchise Cost, Revenue & Review 2026
- Investment
- $10K – $38K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
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 on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $10K – $38K
- 3rd pct Business Serv…
- Avg gross sales
- N/A
- Outlet subsetPartial period
- Royalty
- Not extracted
- Units
- 33
- 29th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · 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.
- RETURNSItem 19 reports revenue for a partial period rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 63/100 (higher is better).
- GROWTHNegative: net -2 franchised outlets in the latest year (0 opened, 2 closed) (Item 20).
- 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 82% 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
No Item 19 revenue figure for ITEX is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one ITEX unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
Reported for a subset of outlets rather than the whole system
Covers a partial period, not a full year
- Item 19 type
- Average and Median Commissions Per Cycle for the fiscal year ended July 31, 2025, banded in 50-Member increments from 'Under 100' to '501+' Members across 33 franchisees. Every figure is a franchisee's yearly commission total divided by 13 Cycles, so these are roughly four-week amounts and not annual revenue: band averages run $1,978.44 (Under 100 Members, 3 franchises) to $10,474.58 (501+ Members, 2 franchises), and the band medians move with them, $1,782.52 to $10,569.41. The measure is cash commissions only - 35% of cash Association Fees collected plus 75% of the 6% cash Transaction Fee charged on a Member's Combined Transaction Volume - and the table expressly excludes non-cash ITEX Dollar Association and Transaction Fee commissions. The filing prints no all-system average, median, high or low row; the bands are all there is.
- Sample size
- 33
- vs category median 37
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
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 median of 9.0%.
Disclosure
Item 19 reports revenue for a partial period 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 medians
How Itex Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 33
- Opened
- 0
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- 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).
Where the owners are · Item 20 owner list
9 current owners across 5 states.
- TX 3
- WA 3
- CA 1
- FL 1
- TN 1
Counts only, from the list the franchisor prints in Item 20; 34 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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)
Subject: the franchisor is a named party (defendant).
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)
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).
ⓘ 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
- 03MEDUnsustainable commission structure: 25% royalty on transaction fees only (not gross revenue) creates thin, unpredictable income dependent on franchisee hustle
- 04MINORNo territory protection: Open territory invites internal competition and cannibalization among 33 remaining franchisees
- 05MINORDecaying unit base: Lost 2 locations in past year; franchise likely entering death spiral if trend continues
- 06MINOR5-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 | No territory protection |
| 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
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?
Item 19 of the ITEX FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns ITEX?
ITEX is franchised by ITEX Corporation. Source: FDD Item 1, 2025 filing.
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.
Is ITEX a good franchise to buy?
FranchiseVerdict rates ITEX as a B-grade franchise with a verdict score of 63 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.