Milam’s companies lawsuit continue to be investigated, the case serves as a cautionary tale for others in the cannabis industry. California-based Cookies Retail LLC has filed a lawsuit against Gilbert Milam Jr., also known as Berner, and his affiliated companies for alleged violations of state and federal franchise laws, fraudulent misrepresentations, and damages exceeding $100 million. Striking the right balance between maintaining brand control and avoiding potential legal pitfalls in franchising or licensing marijuana stores is crucial for sustained growth. The repercussions may affect the companies directly engaged in the dispute and alter the course for other burgeoning businesses eyeing similar expansion strategies.Implications for the Cannabis IndustryWhile the finer details of the Cookies Retail vs. Franchise law violations can carry severe penalties, raising the stakes for all involved parties.
California-based Cookies Retail LLC has filed a lawsuit against Gilbert Milam Jr., also known as Berner, and his affiliated companies for alleged violations of state and federal franchise laws, fraudulent misrepresentations, and damages exceeding $100 million. The principals involved in the dispute include Brandon Johnson, co-founder and CEO of TRP, a cannabis cultivation company operating stores under various brands in 14 states.
Licensing Agreements Gone Sour
According to the lawsuit, Johnson and Cookies Retail entered into licensing agreements with Berner’s businesses starting in January 2020 to open Cookies-branded...
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