Cafe Serendipity Holdings Inc. (CAFS)

[lesgetrich]

From their 1/22/15 PR...

Cafe Serendipity Holdings, Inc., fka Force Fuels, Inc. Announces First California Branded Licensed Store

Golden State CBD Inc. is estimated to do approximately $2 million in revenue next year. Under the terms of the licensing agreement, Café Serendipity is to receive a percentage of the sales.

From their 5/4/15 PR...

[url]www.otcmarkets.com/stock/CAFS/news/Cafe-Serendipity-Holdings--Inc--Announces-Its-Fourth-Branded-Store-Licensed-Agreement?id=103499&b=y
[/url][tag]Cafe Serendipity Holdings, Inc. Announces Its Fourth Branded Store Licensed Agreement[/tag]

The store will use our brand and market our proprietary products under the terms of the licensing agreement. The store is projected to produce revenues in excess of $1,000 per square foot. Café Serendipity is scheduled to begin to receive its monthly license fees beginning July 1, 2015. The store will benefit from our brand name, systems, technology, products and growing network of vendors and growers.

$1,000 per square foot revenue is in line with their estimates for sales from their model store.

Small dispensaries aren't a logical target market for CAFS. They would not be able to afford the franchise fees or revenue sharing. It's likely that all of them are bringing in at least $1 million/year. In any event, no matter what they're making, revenue is revenue and CAFS needs to prove its value with some existing dispensaries before any of them would invest in new stores. So what if some of the early stores make $1.5 million or $1 million. Right now it's more important to get some money flowing. Also, it's likely that the two grow-ops will be bringing in more revenue than the stores will.