That would depend on how much BlockSafe makes.
I they make $1m a month then $138k will not be bleeding them dry.
If they make $100k a month, yes that will hurt BlockSafe, but it would also take 10 months before they would have to start paying SFOR.
They also said they plan on generating $35m from the STO and $5m of that is only 14%. and as long as the people buying the tokens knows that they are going to pay SFOR the $5m that should be factored into the investors decision to buy the tokens or not.
As far as the relabeling, I have no idea how the sales will go, but considering they are the first to market with Bitcoin wallet and exchange protection, I think they have a good shot at doing well if they keep up the conferences and spreading the word.
So, again. Currently can SFOR products be sold to the government using channel partners?