Under what conditions does Annex Brands require approval for the transfer of a software license?

According to the 2025 FDD, Annex Brands requires approval for the transfer of a software license if a prospective franchisee acquires an existing retail center through a transfer. Specifically, if a franchisee is purchasing an existing Annex Brands location from a selling franchisee, Annex Brands must approve the transfer of the existing software license to the new franchisee.

Currently, Annex Brands does not charge a fee to transfer the existing software license during a transfer. However, the FDD states that Annex Brands reserves the right to charge a software fee for transfers in the future. The initial software fee for a standard retail center, flex retail center, or express retail center is $250 for the use of their proprietary PostalMate POS network software and related materials.

This requirement ensures that the new franchisee is properly licensed to use Annex Brands' proprietary software and that Annex Brands maintains control over who is using their software. It also allows Annex Brands to potentially collect a fee for the transfer of the software license in the future, should they choose to implement such a fee. Prospective franchisees should confirm whether a software transfer fee is in effect at the time of transfer.