The announcement comes as another blow for the high- street print franchise owner, following a public spat with franchisees over alleged supplier kickbacks and Xerox's termination of its contract with ODC last month due in part to rebates paid to ODC.

Wayne Barlow, professional print channel director at Canon UK, said: "A year ago, we began working within a framework agreement with ODC and its franchisees within the Kall Kwik and Prontaprint network. While the framework provided many successes, over the past year, the economic climate has changed and we felt a review of that agreement had become necessary.

"The agreement has now terminated, however, we remain committed to working with the company to best serve the interests of its franchisees within Kall Kwik and Prontaprint."

Barlow stressed that Canon remained in discussion with ODC and would keep its options open and review its decision in the future.

A spokesperson for ODC said: "We continue to work with Canon in order to leverage the best deals for our franchisees. We are committed to consistently reviewing the way we work with suppliers to provide value and support across the network."

Following the termination of its agreement with ODC last month, Xerox UK said it had been misled regarding the rebate and whether or not it had been agreed with the franchisees.