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InXpress

InXpress, LLC
https://www.inxpress.com
1-801-495-7894
75 W. Towne Ridge Parkway, Suite 201, Sandy, Utah 84070
FDD Version:

How much does InXpress cost?

Initial Investment Range

$86,900 to $169,290

Franchise Fee

$65,000 to $65,990

InXpress businesses provide shipping, consulting, customer service, logistics, and other business services using third party international, airfreight, express truck, and other transportation services through one or more domestic and international carrier companies.

Enjoy our partial free risk analysis below

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InXpress June 4, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 19, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
2
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

InXpress, LLC (IXL) explicitly warns about its financial condition as a special risk. The financial statements show a history of net losses in 2022 and 2023, and an unaudited loss in early 2025, though 2024 was profitable. This history of losses could indicate potential financial instability, which might affect IXL's ability to provide support or invest in the system, posing a significant risk to your investment.

Potential Mitigations

  • A thorough review of all financial statements, including footnotes, with an experienced franchise accountant is essential to assess the company's stability.
  • Ask your accountant to analyze the recent profitability in 2024 against the historical losses to understand the sustainability of the turnaround.
  • Discuss the implications of the disclosed financial risk and the complex international parent structure with your attorney and financial advisor.
Citations: Item 21, Exhibit B

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a very high rate of franchisee turnover. In 2024, the system started with 76 outlets and ended with 59, a net decrease of 22%. There were 14 terminations and 9 outlets that ceased operations for other reasons (transfers). This level of turnover is a significant red flag that may suggest systemic issues, such as franchisee unprofitability, dissatisfaction, or a challenging business model. Your investment could be at a higher risk.

Potential Mitigations

  • It is critical to contact a significant number of former franchisees from the list provided in Exhibit C to understand why they left the system.
  • A franchise attorney can help you analyze the Item 20 tables and formulate questions for the franchisor about the high turnover rates.
  • Your business advisor should help you weigh the risks associated with a system that has experienced such a high volume of exits.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The franchisor discloses rapid growth in prior years, but the most recent data in Item 20 shows a significant system decline, from 95 franchised outlets at the start of 2022 to 59 at the end of 2024. This contraction, combined with high turnover, suggests the system may be facing significant challenges and could struggle to provide adequate support for remaining franchisees. This represents a substantial risk to the system's stability and health.

Potential Mitigations

  • Your business advisor should help you question the franchisor directly about the reasons for the recent system contraction and their strategy for stabilizing it.
  • Engaging with a range of current franchisees is crucial to gauge their perception of the system's current health and the quality of franchisor support.
  • An accountant should review the franchisor's financials in Item 21 to determine if they have the resources to manage this period of contraction.
Citations: Item 20

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified in the FDD Package. A new or unproven franchise system can present higher risks due to the lack of a long-term track record and potentially underdeveloped support systems. IXL has been offering franchises since 2006, so it is not a new system.

Potential Mitigations

  • Reviewing the business experience of the management team in Item 2 with a business advisor is a good practice to assess their relevant expertise.
  • It is always wise to ask your attorney to scrutinize the franchisor's history and any predecessor companies disclosed in Item 1.
  • Speaking with the earliest-joining franchisees can provide insight into how the system and its support have evolved over time.
Citations: Item 1, Item 2

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD Package. A fad business is one tied to a fleeting trend, which could jeopardize long-term viability after public interest wanes. The logistics and shipping industry is a well-established and essential part of the economy, not a fad, suggesting a durable market for the services you would offer.

Potential Mitigations

  • A business advisor can help you conduct independent research on the long-term outlook for the logistics and shipping industry.
  • It's beneficial to evaluate the franchisor's plans for innovation and adaptation to new technologies with your business advisor.
  • Consider the resilience of the business model to economic shifts with your financial advisor.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 2 indicates that the key executives have extensive experience in the logistics, shipping, and franchise industries, including significant time with competitors like Worldwide Express and Globaltranz. This level of relevant experience suggests the management team is familiar with the business model and its challenges, which is a positive factor. Inexperienced management can be a significant risk, potentially leading to poor support and strategic errors.

Potential Mitigations

  • It is always prudent to have a business advisor help you research the backgrounds of the key executives listed in Item 2.
  • Asking current franchisees about their direct experiences with the management team can provide valuable, real-world insight.
  • Your attorney can help verify the franchising experience of the management team.
Citations: Item 2

Private Equity Ownership

Medium Risk

Explanation

IXL is part of a complex international ownership structure involving multiple holding companies based in the UK and Delaware, which is characteristic of private equity ownership. This structure may prioritize short-term investor returns over the long-term health of franchisees. This could potentially lead to increased fees, reduced support to cut costs, or a sale of the entire system, creating uncertainty for your business.

Potential Mitigations

  • A business advisor can help you research the track record of the parent companies with other franchise brands they may have owned.
  • It is crucial to discuss with current franchisees whether they have experienced negative changes in support or fees under the current ownership.
  • Your attorney should review any rights the franchisor has to sell or assign the franchise system and explain the potential impact on you.
Citations: Item 1, Item 21

Non-Disclosure of Parent Company

Medium Risk

Explanation

IXL is a subsidiary of a complex chain of parent companies, but the FDD does not include the financial statements for these parents. While this may be compliant with disclosure rules if the parent does not guarantee the franchisor's obligations, it limits your ability to fully assess the financial strength of the ultimate ownership group. This lack of transparency into the financial health of the entities controlling IXL presents a risk.

Potential Mitigations

  • Your accountant should carefully review IXL's own financials for any signs of dependency on its parent companies.
  • An attorney can help you inquire about the financial status of the parent entities and why their statements are not included.
  • It is wise to understand the full corporate structure and any guarantees that might exist between the parent companies and IXL.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 notes that IXL was originally organized as Allfreight Solutions, LLC, but does not disclose any predecessors from which it acquired substantial assets. The history provided appears to be that of the current company under a previous name, which is a low-risk scenario. A history of acquiring assets from failed systems could be a significant red flag.

Potential Mitigations

  • It is always a good practice to have your attorney carefully review Item 1 for any mention of predecessor companies.
  • Independent internet searches for the franchisor's name and any previous names can sometimes uncover history not detailed in the FDD.
  • A business advisor can help you assess the franchisor's complete operational history.
Citations: Item 1

Pattern of Litigation

High Risk

Explanation

Item 3 discloses several lawsuits. This includes a complex dispute where IXL had to intervene between a creditor and a franchisee, a separate lawsuit IXL filed against a franchisee for breach of contract, and two additional suits to collect money from other franchisees. This pattern of litigation, particularly actions between the franchisor and its franchisees, may indicate an aggressive enforcement style or underlying issues in the franchise relationship that could lead to disputes.

Potential Mitigations

  • Your franchise attorney must carefully review the nature, allegations, and outcomes of all disclosed litigation.
  • It is important to discuss these legal disputes with the franchisor and, if possible, the franchisees involved to understand the context.
  • A business advisor can help you assess whether the litigation pattern suggests a higher-than-average risk of conflict within the system.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
4
2
9

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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3

Financial & Fee Risks

Total: 10
6
3
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
5
5
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
4
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
3
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
5
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
9
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.