Sorry to jump in so late...the licensing is brilliant and an area I specialize in. This goes back to MG owning brand names which I think is HUGE. Recognition is why mass distribution will work. Sovereign OG/Yak. Remember all the Fed talk about tracking from "seed to sale"?   2 things here - 1st SKTO is working directly with collectives and now dispensaries to provide them with branded seeds/formulas.  If they seek multiple state expansion they will not be producing any goods in CA and shipping them to another state, that's illegal. Rather they will provide services and license the formulas so that local producers can make their branded product, and SKTO will get a fee from that.  2nd - I think SKTO is going to be working with the government/legal side of the situation to keep all those involved operating within clear boundary of the law.  The profits on licensing are endless. 

Trademark and brand licensing
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A licensor may grant permission to a licensee to distribute products under a trademark . With such a license, the licensee may use the trademark without fear of a claim of trademark infringement by the licensor. The assignment of a license often depends on specific contractual terms . The most common terms are, that a license is only applicable for a particular geographic region, just for a certain period of time or barely for a stage in the value chain . Moreover there are different types of fees within the trademark and brand licensing. The first form demands a fee independent of sales and profits , the second type of license fee is dependent on the productivity of the licensee.