What are the implications for existing Parcel Plus franchisees after Annex Brands acquired EAGLE?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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As noted in Item 1, we acquired Pak Mail Centers of America, Inc. on April 20, 2016. The acquired franchisees may continue to operate businesses similar to our retail centers and Commercial Logistics Centers under the Pak Mail trade names in their existing territories. We acquired substantially all of the franchise assets and programs of EAGLE on October 31, 2014. The acquired franchisees may continue to operate retail centers under the Parcel Plus trade names in their existing territories. We acquired substantially all of the franchise assets and programs of Amailcenter Franchise Corporation ("AFC") in August 2011. The acquired franchisees may continue to operate retail centers under the AIM Mail trade names in their existing territories. We acquired substantially all of the franchise assets and programs of Navis Logistics Management, Inc. ("NLM") in January 2011. The acquired franchisees may continue to operate Commercial Logistics Centers under the Navis Pack & Ship trade names in their existing territories (see our Commercial Logistics Center Franchise Disclosure Document for more information). We also acquired substantially all of the franchise assets of The Packaging Store, Inc. ("PSI") in September 2007. The acquired franchisees may continue to operate retail centers and Commercial Logistics Centers under the Handle With Care Packaging Store trade names in their existing territories. Also as noted in Item 1, we acquired substantially all of the franchise assets of Sunshine Pack & Ship USA Corp. ("Sunshine") in September 2006. The acquired franchisees may continue to operate their retail centers under the Sunshine Pack & Ship trade names in their existing territories. We are continuing to offer PostalAnnex, PostalAnnex+, Pak Mail, AIM Mail, Parcel Plus, Handle With Care Packaging Store, and Sunshine Pack & Ship retail center franchises. We also are continuing to offer Navis Pack & Ship, Handle with Care Packaging Store and Pak Mail Freight Commercial Logistics Center franchises. We provide training to retail franchisees and other support to all of the franchisees from our San Diego headquarters office, and we provide additional support to franchisees from our Denver Logistics Center.
We plan to acquire additional franchise assets and programs related to retail centers and Commercial Logistics Centers operating under different trademarks.
All retail centers and Commercial Logistics Centers, subject to any restrictions in their own franchise agreements, may solicit and service clients and otherwise advertise and offer their respective products and services to any individuals or entities regardless of those individuals' or entities' geographic locations, including any locations within your protected area (see our Commercial Logistics Center Franchise Disclosure Document for more information).
We may solicit and service clients nationwide on our website. If we make website sales to clients located within your protected area, we may pay you a commission (typically from 10% to 50%).
We or an affiliate also may choose to periodically offer you franchisor customer referrals, which may include business accounts, national accounts, work orders for products or services, and other fulfillment business. Our current policy is to offer you the opportunity to service a franchisor customer referral for a specific fee, which is less than the price at which we sell the business to the customer.
Source: Item 12 — Territory (FDD pages 62–64)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, Annex Brands acquired substantially all of the franchise assets and programs of EAGLE on October 31, 2014. The document states that the acquired franchisees may continue to operate retail centers under the Parcel Plus trade names in their existing territories. This indicates that existing Parcel Plus franchisees, who were part of the EAGLE acquisition, were allowed to maintain their operations under the Parcel Plus brand within their originally defined territories. This suggests that Annex Brands honored the existing agreements and territories of these franchisees.
This continuation of operations provides stability for the franchisees who were part of the acquisition, as they can continue to operate their businesses without immediate changes to their branding or location. However, it is important to note that Annex Brands also states that they may periodically acquire an entity or a portion of its assets, where such entity or assets, owns, operates or licenses businesses that offer the same or similar products and services as your retail center offers. The location or operation of such entities, assets or businesses (franchised or otherwise) within your protected area will not violate the franchise agreement. This means that Annex Brands retains the right to acquire other businesses that may compete with existing franchisees, even within their protected area, which could impact the competitive landscape for Parcel Plus franchisees.
Annex Brands also states that the franchisee will not receive an exclusive territory and may face competition from other franchisees, from outlets that Annex Brands owns, or from other channels of distribution or competitive brands that Annex Brands controls. This highlights the potential for competition within the Annex Brands system, even with a protected area. Prospective franchisees should carefully consider the implications of these competitive factors and the potential for Annex Brands to acquire competing businesses within their territory. Franchisees should seek clarification on how Annex Brands manages potential conflicts and supports franchisees in competitive situations.