Inner Spirit Holdings Ltd. INSHF

RE:RE:RE:RE:RE:Gott love this JASPER

[BuddyGuyMan]

Agreed.  People are focusing on top line revenue, but what actually matters is bottom line.  So yes, other companies which wholly own every store may post bigger top line numbers, but their costs will also be much higher, which leads to less profit and potentially bigger losses.  The franchise model puts the cost on the franchisee.  The franchisee takes on the cost risks and ISH recieves the royalty regardless of cost to the franchisee.  And to help the top line number, ISH will also run a selection of corporate-owned locations.  This model is very scalable at low cost and will allow Spiritleaf to have a leading unified brand across Canada and eventually the US.

Jessa7 wrote: Speaking strictly profit, current margins seem to be around 30% net. Ish is getting 6% of gross from franchises. 5% and a 1% advertising. So roughly 6 franchise equals one corporate without adjusting for gross vs net profits. 

Branding and pricing will be very big with deciding where people shop, ish has the ability to open a lot of stores for zero cost. This will help with being recognized nationally. 

News out, Ontario issuing 50 additional licenses!