You can only use your franking machine once you have obtained a Royal Mail franking licence, which gives you the right under the Postal Services Act 2000 to frank your own post at substantially discounted postage rates. Under the Act, the Royal Mail operates very strict controls of manufacturing, supplying and maintaining franking machines to ensure that this system is not abused in any way; the franking licence is a crucial part of Royal Mail's enforcement procedures of this Act.
The licence includes your name and address as the user, the address at which the machine will be used, the Royal Mail Franking Administration Centre where your records will be kept and the model name and number, together with the serial number of the machine and any meter it may have. It will also show the die, device or machine identifier. You must inform Royal Mail within 14 days if any of this information changes, and Royal Mail has the right to pass these details on to the authorised manufacturer and authorised maintainer of your franking machine to ensure that all information about the machine is always up-to-date.
In addition, by obtaining a Royal Mail franking licence you are agreeing that you will not tamper with the machine; you are also agreeing to an annual inspection, accepting that your franks will be legible on all of the post you send out and that you will only be sending business post. The complete terms and conditions of the franking licence are detailed in the Royal Mail Scheme for Franking Letters and Parcels 2008; this is a legally binding agreement between you and Royal Mail that allows you to use your machine, but if you do not adhere to the conditions of the agreement permission may well be withdrawn.
You apply for your licence from an authorised Royal Mail supplier when you buy or rent your franking machine. To buy, rent or lease a machine, new or second hand, and use it without a licence is illegal. If the machine is second hand check that it comes with a service contract that includes a license. Don't just assume that your machine has a licence because you could be breaking the law by using the machine to frank your post, be it one letter a week or a hundred per minute. In a nutshell, anyone who uses a franking machine must have a licence.
As you may have already discovered, buying or renting a franking machine can be a daunting task, especially with such strict licencing controls to add to your check list. This is where a price comparison service comes into its own. The price of your Royal Mail franking licence is included in the purchase, rental or inspection costs, not paid directly to Royal Mail. Price comparison services will only direct you to Royal Mail authorised franking suppliers to help you get the right machine for your business at the right price, while also making sure you comply with crucial legislation.