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InXpress Franchise Sales, Costs & Profits (2023)

If you’re looking for a low investment yet high profits franchise, you should seriously consider courier and shipping companies. InXpress is definitely one of them. Why?

With 90 franchises already operating in the US today, it’s a major player. In addition, starting a InXpress franchise requires a rather low investment upfront ($126,000).

Yet, one InXpress makes on average over $1.5 million in sales per year..! What about profits?

In this article we’re looking at InXpress and its Franchise Disclosure Document to find out how much it (really) costs, and how profitable it is. Let’s dive in!

Key stats

Franchise fee$50,000
Royalty fee30% of Gross Margin
Marketing fee1.0%
Investment (mid-point)$126,000
Average sales$1,562,000
Sales to investment ratio12x
Payback period2 years
Minimum net worth$150,000
Minimum liquid capital$25,000
Source: Franchise Disclosure Document 2022
InXpress franchise business plan

InXpress Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews

About InXpress

InXpress is an international shipping franchise organization offering top-notch carrier solutions to small and medium-sized businesses worldwide.

The company’s story began in 1999 in the UK, when the founder John Thompson first came up with the idea at his Rochdale home. 

The brand partners with world-class courier companies and uses its Global Shipping Specialists to deliver parcels, documents, pallets and crates to the right destinations. 

In 2006, the shipping company started franchising, opening its first locations outside the UK.

Today, InXpress is the one-stop store for shipping and delivery services, operating over 431 franchised locations with 91 locations operating in the US. 

InXpress franchise pros and cons

The Pros:

  • Innovative software: The innovative, proprietary software and an automated shipping platform streamline the shipping process. The franchisor also provides a franchise performance tool and franchisee business management program to improve results. 
  • Flexible, personalized services: Flexible shipping services adapt to changing customer needs, increasing the chances of conducting successful business transactions. 
  • No inventory: Franchisees only need a laptop or a mobile phone with a stable internet connection to start and run an InXpress franchise. 
  • Solid partnerships with world-class carriers: InXpress has respected partnerships with trusted courier companies to help franchisees get their business off the ground. 
  • Comprehensive training and ongoing support: The franchisor offers extensive training and continuous support to help franchisees enter the competitive market confidently.  
  • Recurring revenue: The collective purchasing power translates to recurring revenue opportunities for franchisees who don’t need to fetch or touch a package.
  • Financial assistance: The franchisor has solid relationships with third-party financing sources to cover the franchise fee, startup costs and equipment. 
  • Home-based franchise opportunity: Franchises can operate from home or as mobile units. 

The Cons:

  • No exclusive territories: No exclusive territory protection because the franchisor offers a home-based investment opportunity. 
  • No absentee ownership: Franchisees must commit to the day-to-day business operations.
  • Can’t operate part-time: InXpress franchise isn’t a part-time investment opportunity. 

InXpress franchised business

InXpress franchise costs

You would have to invest an average of $126,000 to start a new InXpress franchise.

The investment covers all the start-up costs you may need to open a InXpress franchise. You must pay the franchisor an initial franchise fee of $50,000. In addition to this franchise fee, the investment also covers:

  • Formulation costs: licencing fees and surety bonding, business licences and permits, etc.
  • Equipment: computer hardware and software
  • Operating costs: training fee, office expense, insurance, office equipment and supplies, training transportation and expense, MSP fees, professional fees, additional funds for 12 months, etc.

Startup costs

Here’s the full breakdown of costs:

Type of ExpenditureAmount
Initial franchise fee$50,000
Formulation costs$100 – $12,000
Equipment$1,000 – $2,000
Initial Marketing fee$10,000
Operating costs$24,500 – $92,990
Total$85,600 – $166,990
Source: Franchise Disclosure Document 2022
InXpress franchise business plan

InXpress Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews

InXpress franchise fees

The initial franchise fee for a InXpress franchise is $50,000

In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 30% of Gross Margin of revenues, as well as a variable marketing fee of 1.0% of revenues.

InXpress franchise revenue

On average, an InXpress franchise makes $1,562,000 in sales per year.

This number is the average sales per shop unit for the 48 franchises (out of the total 94) that were not only operated in all of 2021 but have also been operating for at least 3 years. This is a significant +61% increase vs. 2020 ($890,000).

Indeed, the revenue vary significantly based on the age of the business as shown in the table below:

Months in operationAverage revenue (2021)Average revenue (2020)
60+ months$1,771,004$1,057,393
37 – 60 months$1,144,594$473,380
Total 37+ months$1,562,201$890,532
12 – 36 months$635,098$514,675
Source: Franchise Disclosure Document 2022

InXpress franchise profits

We estimate that the average InXpress franchise makes $79,000 in profits per year (5% EBITDA margin).

Note that we estimated this number. Indeed, InXpress doesn’t provide any detailed information other than Gross Margin in its FDD. Therefore, we had to estimate other operating costs by using a source from McKinsey instead (by the way, we used the same approach for Unishippers).

Profit and lossAmount% revenueSource
Revenue$1,562,201100%as per FDD
COGS$(1,159,076)74%as per FDD
Gross Profit$403,12526%
Royalties*$(120,937)30%as per FDD*
Other operating costs$(203,086)13%assumption (source: McKinsey)
* % of Gross Profit (InXpress franchise royalty payments are based on Gross Profit Margin)

Is InXpress a good franchise investment?

Like Unishippers, InXpress is a great franchise to invest in as a franchisee. Indeed, we found that the franchise has an excellent 2 to 3 years payback (1-2 years for Unishippers).

To estimate payback we used a 3-5% net profit margin which we compared against the average initial investment cost of $126,000. In other words, you would repay all creditors and investors on average 2-3 years after starting the business, which is an excellent investment.

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