As more states adopt regulated marijuana programs, executives at licensed cannabis brands are seeking innovative ways to reach new markets.
Brand licensing, revenue-sharing, profit-sharing and franchising all are ways to circumvent restrictions on interstate commerce, said Avis Bulbulyan, CEO of California-based cannabis consulting firm Siva.
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“It’s all really licensing, it’s just how you go about it,” Bulbulyan told MJBizDaily.
“There are 50 different ways to split the fees.”
Under licensing arrangements, which tend to be rigid, licensees typically pay for the right to use – not own – a brand’s product or intellectual property.
Licensing often includes an upfront fee, and the licensee assumes most of the financial risk because they must pay the brand regardless of revenue performance.
However, some brands are
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