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ITEX
ITEX Corporation operates a barter marketplace where member businesses exchange products and services using ITEX Dollars instead of cash, with the franchisor providing record-keeping, transaction processing, and administrative services while generating revenue through percentage-based fees, association fees, and other charges. Franchisees establish and operate local offices using the ITEX System and Marks to promote the marketplace to businesses, earning commissions primarily in cash and partly in ITEX Dollars from assigned members. The target market consists primarily of small businesses with fewer than 10 employees.
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Franchise Costs
No ongoing royalty or brand fund. Various per-cycle/per-member fees (e.g., $50 setup per member not on autopay, $5/cycle/extra email) and as-incurred fees (e.g., up to $100/hr assistance).
Financial Performance
Item 19 Financial Performance
Data Based On: Historical financial performance of existing franchisees for the fiscal year ended July 31, 2025, based on 13 Cycles.
* The document describes the methodology for calculating average and median commissions for franchisees and states that commissions on cash Association Fees are paid at 35%. However, it does not provide the actual numerical values for average gross revenue, median gross revenue, or any profit metrics in the provided text for these pages.
Extracted Item 19 Section
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Unlock financial performance dataITEX Franchise Analysis
Trading goods and services without cash sounds like a relic, but ITEX has built a franchised barter empire targeting small businesses since 2002. Item 19 lays bare franchisee financial performance, hinting at a lean model with unique revenue streams from trades. With just dozens of locations persisting over two decades, is this recession-proof niche a buyer's bargain or too specialized to explode?
Item 7 pegs initial investment at a franchise-low $9,700 to $37,700, including the $10,000 franchise fee, making entry accessible for entrepreneurs eyeing services. No ongoing royalties or marketing fund sweetens the deal, though franchisees face variable fees like $50 per manual member setup, $5 per extra email cycle, and up to $100/hour for assistance—charges tied directly to growth in local member trades. Item 19 disclosure offers rare transparency into cash and ITEX Dollar commissions from assigned members, ideal for modeling profitability in a system with only 2 transfers and steady 33 locations.
ITEX differentiates in business services by powering a marketplace for sub-10-employee firms, with franchisor handling admin while franchisees hustle local sign-ups. FDD from 2026 reflects a mature, low-churn operation sans aggressive expansion, suiting hands-on operators over passive investors. Prospective buyers should probe Item 19 medians by office vintage, audit local barter demand via chamber networks, and review member retention rates to gauge scalability beyond the current footprint.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How ITEX Compares
Key Insights
- Lower investment than 96% of Business Services franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
ITEX Current | $10K – $38K | $10K | N/A | 33 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| RE/MAX | $37K – $337K | $35K | 1.0% | 2,994 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
Business Services Average 198 franchises | $121K – $289K | $47K | 10.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 198 Business Services franchises by location count.
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a ITEX franchise ranges from $9,700 to $37,700. This includes a franchise fee of $10,000.
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