What is the initial 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 Annex Brands' 2025 Franchise Disclosure Document, franchisees must pay an initial license fee of $250 for the PostalMate sublicense. In addition to the initial fee, franchisees are also required to pay an annual license fee of $35. Furthermore, a monthly maintenance fee of $105 is payable to PostalMate, which is collected via automatic draft or credit card on the 1st of each month.
It's important to note that Annex Brands retains the right to modify both the monthly maintenance fee and the annual license fee at its discretion. However, Annex Brands is obligated to provide the franchisee with a written notice at least 15 days before implementing any changes to these fees.
If a franchisee decides to transfer their Annex Brands franchise to a new owner, the PostalMate sublicense can also be transferred, but only with the approval and authorization of Annex Brands. The new franchisee will be required to execute the then-current sublicense agreement and may be subject to a transfer fee. Currently, there is no transfer fee if the center remains at the same location; however, Annex Brands reserves the right to implement or modify a transfer fee with a 15-day prior written notice.