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NavyMSU

01/06/13 8:00 PM

#62677 RE: StevenRisk #62675

Franchise or IP licensing royalties are not as lucrative as causal expansion.

Why did they go the licensing route? Less risk to individual state differences and intra-state commerce issues. Letting somebody else make the THC products and just collect a fee for the brand name and recipes removes federal liability.

With less risk comes less reward.

I would prefer they actually open manufacturing sites in each MMJ state and let distributors handle the marketing and instate expansion amongst the dispensaries. More risk, more reward.