InXpress Franchise Costs $86K – $168K (+ 2024 Profits)

InXpress is a well-established global franchise that specializes in shipping and logistics solutions, providing small and medium-sized businesses with cost-effective and efficient transportation services. Founded in 1999 and beginning its franchising operations in 2000, InXpress has grown to be a significant player in the logistics sector.

The company is headquartered in South Jordan, Utah, USA, which serves as a central hub supporting a network that spans multiple countries across various continents.

The franchise operates under a business-to-business model that leverages agreements with world-class carriers like DHL, FedEx, and UPS, allowing it to offer bulk buying discounts that individual businesses typically could not secure on their own.

Type of Expenditure	Amount
Initial Franchise Fee	$50,000
Training Fee	$5,000 – $6,000
Office Expenses	$0 – $3,000
Licensing Fees and Surety Bonding	$0 – $10,000
Insurance	$500 – $2,500
Office Equipment & Supplies	$1,000 – $4,000
Training Transportation and Expenses	$1,500 – $7,500
Business Licenses & Permits	$100 – $2,000
Computer Hardware & Software	$1,000 – $2,000
MSP Fees – (12 Months)	$7,020
Professional Fees	$0 – $2,000
Start-Up Marketing Fee	$10,000
Additional Funds – (12 Months)	$10,000 – $62,000
Total Estimated Initial Investment	$86,000 – $168,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

Upon execution of the agreement, the franchisee must pay an Initial Franchise Fee of $50,000, which is deemed fully earned upon execution and is not refundable under any circumstances.

Royalty Fee

The Royalty Fee is 30% of the Gross Margin, payable weekly. This fee is also known as the Managed Service Fee, and it is fully earned by the franchisor when paid, non-refundable.

Marketing/Advertising Fee

Franchisees are required to contribute to the Brand Fund, which is 1% of the Gross Margin, collected weekly. This fee supports systemwide marketing, advertising, and promotions.

Transfer Fees

A Transfer Fee of 50% of the then-current Initial Franchise Fee or $10,000, plus applicable Training and Start-Up Marketing Fees, is charged at the time of the franchise transfer.

Renewal Fees

The Renewal Fee involves a Successor Fee of $5,000, payable at the time the franchisee signs the new franchise agreement to enter into a successor franchise agreement.

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.

How to open a InXpress franchise

Opening a InXpress franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a InXpress franchise.

1: Research the Franchise

• Understand the business model and market: Research InXpress’s services, the logistics industry, and the benefits of the franchise system.
• Review financial requirements: Examine the initial investment needed, including the franchise fee and operational costs.
• Contact current franchisees: Speak with existing franchise owners to gather insights on their experiences and satisfaction.

2: Contact InXpress for Initial Inquiry

• Fill out a contact form: Provide your contact details to express interest and receive more detailed franchise information.
• Attend an informational session: Participate in webinars or meetings offered by InXpress to prospective franchisees to learn more about the business.

3: Submit an Application

• Complete the franchise application: Fill out the official InXpress franchise application to formally begin the evaluation process.
• Undergo a financial review: Submit financial documents to demonstrate your financial capability to manage a franchise.

4: Receive Approval and Sign Agreement

• Interview and approval: Participate in interviews with the franchisor and await approval for your franchise candidacy.
• Sign the franchise agreement: Review and sign the legal documents to officially become an InXpress franchisee.

5: Training and Setup

• Undergo training: Attend InXpress’s comprehensive training program, which includes online courses and possibly in-person training to understand the business operations fully.
• Establish your business: Set up your office, order initial supplies, and implement the business tools provided by InXpress.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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