What is the annual license fee for the PostalMate sublicense for Annex Brands?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Payment. As payment for the sublicense granted under this Agreement, End User will pay Master Licensee an initial license fee of $250, an annual license fee of $35 and a maintenance fee of $$105 payable monthly on the 1st of the month to PostalMate by automatic draft or credit card. Both the annual license fee and the monthly maintenance fee are subject to Master Licensee's right to modify the maintenance fee and/or license fee, in its reasonable discretion, after at least 15 days' prior written notice to End User. The annual maintenance fee will be invoiced 45 days before the renewal date and paid by automatic draft 30 days before the renewal date (or on the 1st of the month) (See Subsection 8.D, Payment of Fees, of the franchise agreement, for an explanation of the automatic draft payment requirement.) This sublicense may be transferred to a new franchisee ("New End User") only if Master Licensee approves and authorizes the transfer. The New End User must execute the then-current Agreement and pay any applicable transfer fee. Currently, there is no transfer fee, if the Center will be operated in the same location, subject to Master Licensee's right to charge and modify the transfer fee, in its reasonable discretion, after at least 15 days' prior written not
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to the 2025 FDD, an Annex Brands franchisee who is an end user of the PostalMate sublicense must pay an annual license fee of $35 to the master licensee. In addition to the annual license fee, the end user must also pay an initial license fee of $250. A monthly maintenance fee of $105 is also required, payable on the first of each month via automatic draft or credit card.
Annex Brands retains the right to modify both the maintenance fee and the annual license fee at their discretion. However, they must provide at least 15 days' prior written notice to the end user before making any changes. The annual maintenance fee will be invoiced 45 days before the renewal date and paid by automatic draft 30 days before the renewal date, or on the 1st of the month.
If an Annex Brands franchisee transfers their franchise to a new franchisee, the sublicense may also be transferred, but only if the master licensee approves and authorizes the transfer. The new end user must execute the then-current agreement and pay any applicable transfer fee. Currently, there is no transfer fee if the center will be operated in the same location. However, Annex Brands retains the right to charge and modify the transfer fee with at least 15 days' prior written notice.
It is important for prospective Annex Brands franchisees to consider these fees as part of their overall investment and operating costs. They should also be aware of the potential for these fees to change over time, as well as the conditions under which the sublicense can be transferred.