Does Annex Brands retain the right to change the method of payment for the Royalty fee?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transit insurance | Premiums generally are $0.55 to $1.75 per $100 of property valuation, packaging and shipping charges, (typically this expense is passed through to the customer after being marked up by you) | Payable weekly with royalty fee and marketing fee payments | You must participate in any group-wide or other insurance program that we designate regarding small parcel, freight or transit damage and related risks. Premiums typically are billed to the customer at the time of shipment, and are based on the carrier used, whether the shipment is domestic or international, the declared value of the items tendered for shipping, and the packaging and shipping charged to the customer. In our sole discretion, we may increase the rate if you have a high number of claims due to improper packaging and shipping standards (generally, $0.72 to $2.28 per $100 of property valuation, packaging and shipping charges) after at least 15 days' notice to you. Premiums and insurance programs are subject to change after at least 15 days' notice to you. Payable weekly, or as otherwise designated, to us or through us to our designated suppliers. You must pay us by automatic bank draft. (3) |
| Retail center PostalMate POS network software end user license fee | Currently, $35 annually | 30 days before annual due date (1st of the month) | Fee is subject to change after at least 15 days' notice to you. You must pay us by automatic bank draft. (3) |
| Retail center PostalMate POS network software maintenance fee | Currently, $105 monthly | 1st of the month | Fee is subject to change after at least 15 days' notice to you. You must pay PostalMate by automatic bank draft or credit card. (3) |
| Retail center PostalMate POS network software license transfer fee | Currently, $0, but we may charge a transfer fee in the future | On or before the closing date of the transfer | Fee is subject to change after at least 15 days' notice to you. You must pay us. Our approval is required for transfer. |
Source: Item 6 — OTHER FEES (FDD pages 24–32)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, franchisees must pay the royalty fee, marketing fee, transit insurance, Retail center PostalMate POS network software end user license fee, Retail center PostalMate POS network software maintenance fee, and advertising association fee by automatic bank draft.
The royalty fee is 5% of gross receipts and is due each Wednesday after the close of business for the previous week ending Saturday. The marketing fee is 2% of gross receipts and is due each Wednesday after the close of business for the previous week ending Saturday. The advertising association fee is the greater of $150 or 1% of gross receipts and is due 10 days after the end of each calendar month or as otherwise provided by local or regional association bylaws. The transit insurance premiums generally are $0.55 to $1.75 per $100 of property valuation, packaging, and shipping charges and are payable weekly with royalty fee and marketing fee payments. The Retail center PostalMate POS network software end user license fee is currently $35 annually and is due 30 days before the annual due date. The Retail center PostalMate POS network software maintenance fee is currently $105 monthly and is due the 1st of the month.
Annex Brands may establish other due dates for the royalty and marketing fees. The advertising association fee may be paid to the association or directly to Annex Brands, at their option. The Retail center PostalMate POS network software maintenance fee may be paid by automatic bank draft or credit card. Annex Brands may increase the rate for transit insurance if the franchisee has a high number of claims due to improper packaging and shipping standards (generally, $0.72 to $2.28 per $100 of property valuation, packaging and shipping charges) after at least 15 days' notice. Premiums and insurance programs are subject to change after at least 15 days' notice. The Retail center PostalMate POS network software end user license fee and Retail center PostalMate POS network software license transfer fee are subject to change after at least 15 days' notice.