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RCI Hospitality Holdings, Inc. Message Board

  • barkingdog78 barkingdog78 Jul 18, 2013 4:12 AM Flag

    You can tell the Vivid MBA guy put Vivid Cabaret deal together

    Vivid has almost all of the major benefits:

    - Likely it's a licensing fee arrangement where Vivid receives percentage of club's gross revenue "off the top." So even if club does't turn a profit, Vivid still gets paid.
    - If club goes broke, Vivid does not have a loss.
    - Vivid gets to use club to market its movies and promote its stars.
    - Vivid can use clubs to build its relationship with its customers.
    - Vivid can use clubs to promote its other products, especially Vivid Vodka.
    - Vivid is still free to license with other clubs, which they are already doing.
    - Vivid has opportunity to solidify its claim to the "Vivid" tradename across the country and with all types of products; e.g., Vivid sued HTC for marketing phone named "Vivid."
    - If Vivid Cabaret works, RICK will feel compelled to make many more clubs Vivid Clubs.
    - If Vivid Clubs succeed, Vivid gets the credit - since club uses their name; but if Vivid Clubs turn out to be duds, it's easy for Vivid to shift blame to RICK.

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