What action must an Annex Brands end user take upon termination of the PostalMate agreement?

According to the 2025 FDD, upon termination of the PostalMate agreement, an Annex Brands end user is required to return to the Master Licensee, or destroy, all copies of the Product. If the end user chooses to destroy the copies, they must certify in writing to the Master Licensee that they have destroyed the copies. The copies include the original and all copies of the Product, including but not limited to compilations, translations, partial copies and modifications, if any.

This obligation ensures that Annex Brands protects its intellectual property and trade secrets associated with the PostalMate software. By requiring the return or destruction of all copies, Annex Brands aims to prevent unauthorized use, distribution, or modification of the software after the agreement has ended. This is a standard practice in franchising, particularly when dealing with proprietary software or systems.

For a prospective Annex Brands franchisee, this means that upon termination of the PostalMate agreement, they must take immediate action to either return all software copies to the Master Licensee or destroy them. If choosing destruction, they must provide written certification as proof of compliance. Failure to comply with this requirement could result in legal repercussions or further action from Annex Brands to protect its intellectual property rights. It is important to maintain accurate records of the destruction or return of the software to avoid any potential disputes.