Under what conditions can the PostalMate sublicense be transferred to a new franchisee of Annex Brands?

According to Annex Brands' 2025 Franchise Disclosure Document, the PostalMate sublicense can be transferred to a new franchisee, referred to as a "New End User," under specific conditions. Firstly, the Master Licensee, which holds the rights to sublicense PostalMate, must approve and authorize the transfer. This indicates that Annex Brands retains control over who can use the PostalMate software within its franchise system.

Secondly, the New End User is required to execute the then-current sublicense agreement. This ensures that the new franchisee agrees to the terms and conditions of using the PostalMate software, as they are in effect at the time of the transfer. Additionally, the New End User must pay any applicable transfer fee. However, the FDD states that currently, there is no transfer fee if the Center will be operated in the same location.

It's important to note that Annex Brands retains the right to charge and modify the transfer fee at its discretion, provided they give at least 15 days' prior written notice to the End User. This clause gives Annex Brands flexibility to adjust the transfer fee in the future. Prospective franchisees should confirm the current transfer fee and understand the conditions under which it might change. This ensures that the new franchisee is aware of all costs associated with the transfer of the PostalMate sublicense.