Is there a transfer fee for the PostalMate sublicense for Annex Brands, and under what conditions can it be changed?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
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 notice to End User.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, there is currently no transfer fee for the PostalMate sublicense if the center remains at the same location. However, Annex Brands retains the right to implement and modify a transfer fee at their discretion. They must provide at least 15 days' prior written notice to the end user before making any changes to the transfer fee.
This means that while a new Annex Brands franchisee may not initially encounter a transfer fee for the PostalMate sublicense, this is subject to change. Annex Brands can decide to introduce a fee in the future. The condition for this change is that Annex Brands provides a minimum of 15 days' written notice to the franchisee.
Prospective franchisees should be aware that this fee could be implemented or changed during the term of their franchise agreement. It would be prudent to inquire with Annex Brands about their long-term intentions regarding the PostalMate sublicense transfer fee and to factor in the potential for this additional cost when evaluating the financial viability of the franchise.