So the initial cash flow will offset any costs of the franchise agreement. I wouldn't bank on that piece being a game changer for revenue generated, but I think it's an important piece to show that these licenses are cost neutral acquisitions at worst and revenue generators from there on.
Also agree that in the grand scheme of things this is not a major game changer in regards to total revenue, however, brand recognition could potentially become a big deal in these next few years. It's like someone is paying you to play your commercial on TV... even better than free marketing.
What it also allows for is for EVIO to really get their foot in the door in markets that may carry a high risk for a heavy initial investment. If they see CO becomes a major revenue generator they could throw their own labs out in that state and already have name recognition. And FL... If FL goes rec in 2020 and mandatory testing by 2022 (all hypothetical crap nothing suggesting this would happen) They already have their foot in the door to move into other markets in the state. Remember also, many growers are 'mom and pop' shops if you will today.... but expect this to change. Companies will be merging and these companies will already have their go to testing company in each region. I definitely want that to be EVIO whether franchised or not. Big business.... does business with big business. B@B relationships will be key in this industry.
This is what successful franchises do. They keep the money makers to themselves and offload the risk to others.
It's a good business decision IMHO.
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