FAQ's

About ITEX Corporation

Here you will find the answers to many frequently asked questions.

How many employees do I need?
You can start alone and operate until you have about 75 members. However, it often works better to have a partner or, if funds are available, to hire an office assistant/trade director.

What type of facility do I need?
You are free to start at home. As you grow and need to add staff you will need to acquire office space, signage, phone (at least 2 lines), computer, printer/scanner, and Internet access.

What type of technology (phone, fax, computer, internet) do I need?
Hardware

  • Computer: IBM compatible PC (Dell recommended)
  • Processor: Intel (5th generation or newer) or AMD (C-Series or E-Series)
  • Memory: 4GB or more
  • Hard Drive: 256 GB or larger
  • Monitor: 22" display capable of 1280x1024 resolution
  • Printer: Black and white Laser printer
  • High speed internet access such as DSL, Cable, T1 or other commercially available technology

Software

  • Operating System: Microsoft Windows 10 Professional or newer:
    • Microsoft Office 2016 or newer - Includes Outlook, Word, Excel, OneNote and Security Software
    • Antivirus, Firewall, and Spyware (Microsoft Defender recommended)
    • Adobe Reader DC or newer
    • QuickBooks Accounting Software, highly recommend over other accounting software

Phone system with at least two lines, printer/scanner, and a photocopier.

What investment does ITEX provide in terms of advertising and promotion in order to expand my ITEX franchise business?
ITEX has a co-op program that reimburses you up to one half of your investment in approved marketing, advertising and business development costs. While the details of the program can change over time, the current yearly co-op budget is 20,000 ITEX dollars per franchisee.

How long has ITEX Corporation been in business?
Since 1982.

How much training will I receive?
One week of initial training at the company's headquarters with other new Franchisees. Other training is available including at our annual convention.

How much support will I receive after the initial training, and how does ITEX support my business?
ITEX provides a Marketplace and Support department to handle member and franchisee issues. You will have a Marketplace Support Representative assigned to you from day one to assist you in the running of your ITEX franchise. In addition, ITEX provides the technology infrastructure to record transactions as well as providing the billing and collections for servicing member accounts. Powerful reporting capabilities provides complete information on your office's activities as well as leading CRM technology, ITEX dollar posting, and administrative functions.

What are the benefits of owning my own ITEX franchise office?

  • Operate using a recognized name
  • Retain local control over day-to-day operations
  • The potential to build assets and equity
  • Join a network of franchisees working with thousands of members to generate transactions each 4-week business cycle.
  • Systems and support including a Franchise Operations Manual.

What are the key drivers of the business - the key skills needed?
Strong leaders with sales, marketing and people management experience, who are very results oriented with a strong set of core values. Hiring and motivating a team with clearly defined roles, goals and ongoing coaching.

Am I limited to a territory?
No. ITEX Franchisees can recruit new members anywhere in the US and Canada. In reality, you must create a Trading Community in your local market, before you reach out to enroll new members in other markets. Remote members can be difficult to serve and they are free to transfer their account to a closer (if less than 50 miles away) franchisee if you can't satisfy their needs.

What are the biggest challenges to being successful?
The same as any service-related business: focus, concentration, persistence, and time management.

Explain how this business survives - why it has "staying power"?
The members have a vested interest in the health and well being of the business. Their ITEX account has "money" (ITEX dollars) in it and they want to be able to realize the benefits of buying at their Cost Of Goods Sold with ITEX dollars from new customers. Members' average time with ITEX is about 5 years.

What will cause my ITEX franchise business to grow quickly?
A total commitment to adding new members every week, throughout the life of the franchise. Building a positive, stable marketplace with well-trained members in industries businesses need (printers, pest control, restaurants, hotels, etc) as quickly as possible. The more businesses your members have to transact with, the happier they will be with the ITEX Marketplace. Also, relying on the opportunities and systems provided by Corporate and networking throughout the ITEX community are vital to the strength of all Franchise offices.

Do I have to be involved in the day-to-day operations of my ITEX franchise?
The Franchise Agreement requires that either you or a full time General Manager be involved day-to-day. If you use a General Manager, both you and they are required to attend the franchise training class at our headquarters.

How do I get started??
Request the Franchise Disclosure Document (FDD).

What if I want to sell my franchise later on?
You are free to sell your franchise at any time. ITEX retains the right to approve the new franchisee. There is a $2000 transfer fee. The new franchisee would sign the then current Franchise Agreement, and they are required to attend training at our headquarters.

Are there any existing franchises for sale?
We do not offer franchise resells. From time to time a current franchisee will let us know they are interested in selling, and you can get that information by requesting it from our franchise department.

My question was not answered here. What should I do?
Contact us by phone at 800.277.9722 or email at franchises@itex.com and we will make sure you get the answers you need.

About Your Market

What dynamics are important to consider in determining if I'm in a good market?
A well-networked business community. Small or seasonal business markets present serious challenges to a thriving franchise.

What research do I need to do in order to determine the state of my market?
Call your local Chamber of Commerce for information. Check your State's website for business activity information for your city. Interview local business owners you know.

How does ITEX compare to the competition?
There is no comparison. ITEX was founded in 1982, has thousands of business members generating millions in transactions per year, and is a public company (OTC: ITEX). We offer referral and co-op programs to our members that no competitor has been able to duplicate. In addition, ITEX members are encouraged to earn and spend ITEX dollars anywhere in the system with, or without, the assistance of their ITEX trade director. We have created a marketplace that can enhance our member's business and personal lifestyle.

I can't find any competitors. Check the Internet under Barter amd Trade Exchange.

My question was not answered here. What should I do?
Contact us by phone at 800.277.9722 or email at franchises@itex.com and we will make sure you get the answers you need.

About The Investment

What upfront investment is required?
The only amount that you pay to ITEX Corporation is the Franchise fee. This amount will be either $10,000 if you simply pay for your franchise upfront or $5,000 if you successfully complete the Franchise Mentor Program. Information about this program is available upon request. You will also have the costs of setting up a basic office and travel to Bellevue, WA for 5 days of training. The FDD estimates that $31,000-$52,000 in capital should be available to the new franchisee, including the franchise fee.

Do you offer assistance with financing?
Not for the Franchise Fee. You do have 2 Franchise ITEX accounts opened for your use. One will be your Operating account, and the other your Inventory account. Each of them starts with a 5000 ITEX dollar Line of Credit to help you get started. Interest is charged in ITEX dollars on any negative balance at the end of each cycle. The interest rate is 6.5% per year, assessed in ITEX dollars.

What Return On Investment (ROI) can I expect?
How big your membership base will become, and the resulting revenue, depends completely on your vision for what you want to accomplish, and your resulting efforts to realize your goals. See the FDD Section 19, Table #1 for examples of income examples with from 50 to 500 ITEX members.

How do I generate income?

  • Every time a member transacts (sells or buys) they are billed a 6% (if on Autopay) cash transaction fee. As outlined in the FDD your commission is 75%.
  • Each 4-week cycle, members pay an Association fee of $20 cash + $10 in ITEX dollars. Your commission is 35% of the cash and 30% of the ITEX dollars.
  • While businesses can open an ITEX account through www.itex.com for free, as a franchisee, you are allowed to charge a fee for new members to join, which you retain in full. Currently about 15% of franchisees charge such a fee and it averages around $200.
  • Trading with your own account within the ITEX Marketplace.

What about royalties?
ITEX Corporation bills and collects the Transaction and Association fees generated each cycle by our members. Commission checks flow from ITEX to our Franchisees based on the cash collected and the commission schedules listed above. There are no Royalty payments due to ITEX from you.

My question was not answered here. What should I do?
Contact us by phone at 800.277.9722 or email at franchises@itex.com and we will make sure you get the answers you need.