factual

What is included in the definition of 'computer systems' that an Annex Brands franchisee must obtain and use?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

e

You must obtain and use computer hardware, software programs and software licenses ("computer systems") according to our specifications. If you use more than 1 computer system, each computer system must be electronically linked or networked together as we specify. Currently, we require standard retail centers and flex retail centers to obtain and use at least 2 computer systems that operate our PostalMate POS network software and other 3rd party software programs and licenses (described below). Flex retail centers are also currently required to obtain and use a back office laptop computer system. Currently, we require express retail centers to obtain and use at least 1 computer system. Express retail centers must obtain and use a computer system that operates our PostalMate POS network software and other 3rd party software programs and licenses.

Each computer system must have at least the following hardware and software: Current Generation Dual or Quad Core (10th generation or higher), or Generation Intel Core i3, i5, or i7 (or iX-10-xxx or higher), or current Generation AMD Ryzen 5, 7, or Threadripper Processor (or equivalent), 16 gigabytes RAM, 256 Gig solid state drive (SSD) or 500 Gig hard drive, 256 MB or more video card with dual video connection, gigabyte Ethernet card with RJ-45 connection, about 11 ports (the number and type of ports depend on the number and type of attached devices), a multicard reader (reads digital camera memory cards), 22" flat LCD monitor, Windows USB keyboard, 2-button mouse, thermal receipt printer, label printer, Dymo 450 label printer (used for printable postage interface software), cash drawer, 150-lb certifiable electronic scale, bar code reader, HP laser printer or its equivalent, merchant service terminals (used for debit and credit card processing that integrates with PostalMate POS network software), and Windows 10 or 11 Professional operating system. If required in your state, you also may need a pole display. If you are in Florida or Texas, you also will need digital fingerprinting computer equipment and software. If you use more than 1 computer system, each computer system must be linked or networked and you will need a router or switch capable of 1000 MBPS and 1000 Base T network cabling (CAT 5e/6/7.) We do not recommend wireless networks. You may obtain your computer hardware from any supplier. We may assist you in obtaining your computer hardware, but we are not required to do so.

You must obtain PostalMate POS network software from us. We have been using continually-improved versions of this network software since December 1989.

An independent 3rd party, PostalMate of 356 East Germann Road, Suite 220, Gilbert, AZ 85297, telephone: 877-728-5328, an A.P. Moller – Maersk A/S Company of 180 Park Avenue, Building 105, PO Box 950, Floraham Park, NJ 07932 telephone: 800-321-8807, owns this proprietary software and licenses it to us.

We, in turn, will license it to you on an annual basis (see Attachment 6 to the franchise agreement). Currently, the initial license fee is $250, payable to us. This software must be updated periodically to install new DHL, FedEx, U.S. Postal Service, UPS, and other supported regional carriers' rates, and other information. PostalMate will provide upgrades and support for this software to you. We estimate that the cost of maintaining a license for this software will be about

$35 annually, payable to us in the same month each year based on the month in which the license began. The cost of upgrades and support will be about $105 per month, payable to PostalMate. The software license may be transferred to a new franchisee on our approval and written authorization. Currently there is no transfer fee if the retail center will be in the same location, but we reserve the right to charge a transfer fee in the future. These fees are subject to change after at least 15 days' notice to you.

PostalMate POS network software generates sales, product, customer, supplier, accounting, management, shipping and manifesting information. You must record customer information in the PostalMate POS database, and link each customer's transactions to it as we specify. You must have a modem and Internet connection that connects with our computer system, so we have independent access to this information. There are no contractual limitations on our right to access this information.

In addition to the PostalMate POS network software, currently you must obtain and use the following 3rd party software programs or licenses that are designed to enhance and interface with PostalMate network software, except as noted below:

    1. PM Tools software with QuickBooks Integration software subscription license from VSoftwareTools, Inc. (11918 SE Division St #3000, Portland, OR 97266, 800-778-4078) that covers the software, maintenance, support. VSoftwareTools, Inc. is an independent 3rd party that owns this proprietary software and licenses it to you for a monthly subscription fee of $42.50 per month (fees subject to change by supplier). The software interfaces with PostalMate POS network software, and includes, but is not limited to, the integration with Intuit QuickBooks accounting software, enhanced customer list exportation, PIMMS (Package Inventory & Mailbox Management System), ezCRT (Computer Rental Tool), margin calculator, carrier bill reconciliation, additional graphical reporting, enhanced label and tracking features, and automates certain functions of the PostalMate POS network software.
    1. Intuit QuickBooks software (desktop version), proprietary to Intuit, Inc. (2632 Marine Way, Mountain View, CA 94043, 650-944-6000). This software may be purchased from a reseller or supplier of your choice for about $899, and you will be responsible for any update fees associated with this software.
    1. Endicia Premier Plan software subscription license from Endicia (287 Castro Street, Mountain View, CA 94041, 800-576-3279), that covers the software, maintenance, support. Endicia is an independent 3rd party that owns this proprietary software, and licenses it to you for a monthly subscription fee of $29.99 per month (fees subject to change by supplier). The software interfaces with PostalMate POS network software, allowing you print pre-paid professional USPS shipping labels for postage or shipping products directly from the PostalMate POS network software. The software includes, additional benefits, including USPS discounts on Priority and Express Mail, free delivery confirmation and increased efficiencies.
    1. You must use an independent 3rd party web-based merchant card processing software that integrates and automates debit and credit card processing with PostalMate POS network software from an approved merchant service provider.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 45–62)

What This Means (2025 FDD)

According to Annex Brands' 2025 Franchise Disclosure Document, franchisees must obtain specific computer hardware, software programs, and software licenses, which are collectively referred to as 'computer systems.' The number of computer systems required depends on the type of retail center. Standard and flex retail centers must have at least two computer systems to operate the PostalMate POS network software and other third-party software. Flex retail centers also need a back-office laptop. Express retail centers need at least one computer system for the PostalMate POS network software and other third-party software.

Each computer system must meet minimum hardware and software specifications, including a current generation dual or quad-core processor (or equivalent), 16 GB RAM, a 256 GB solid-state drive or 500 GB hard drive, a video card with dual video connection, a gigabyte Ethernet card, multiple ports, a multicard reader, a 22" flat LCD monitor, a USB keyboard, a 2-button mouse, a thermal receipt printer, a label printer, a Dymo 450 label printer, a cash drawer, a 150-lb certifiable electronic scale, a bar code reader, an HP laser printer (or equivalent), merchant service terminals, and Windows 10 or 11 Professional. Depending on the state, a pole display and digital fingerprinting equipment may also be required. If using multiple computer systems, a router or switch capable of 1000 MBPS and 1000 Base T network cabling is necessary, with wired networks being recommended over wireless.

The franchisee must obtain the PostalMate POS network software from Annex Brands. This software is owned by PostalMate, an independent third party. Franchisees must also install all necessary computer hardware and software to operate the PostalMate POS network software and any additional software designed to enhance or interface with it, along with establishing Internet access before initial training. Annex Brands recommends a broadband Internet connection with dial-up backup. The cost of these computer systems is estimated to range from $580 to $13,000, depending on the type of retail center. TechShed can install the PostalMate POS network software, Endicia Premier Plan software, and PM Tools software if the franchisee obtains the required computer hardware through them. However, the franchisee must register for the subscription license before using these software interfaces.

Annex Brands may access the franchisee's computer systems remotely and is not obligated to provide ongoing maintenance, repairs, upgrades, or updates to the computer system. To protect its proprietary software, Annex Brands may use a Security Device to stop the software from working if the franchisee breaches the franchise agreement or software license. The PostalMate POS network software contains a Security Device controlled by Annex Brands. The franchisee is responsible for maintaining Internet access at their own expense for electronic communication.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.