An offer to license my food product.


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An offer to license my food product.

For the last few years I have had a successful business selling food at local farmers markets. I just had an out of state request (legitimate) to license my product and sell in their area. They offered a per sale payment for my recipes. Normally, I sell my product for $5 at markets and wholesale around $3.50. My cost is about $1.50. Any clue how much I should ask for this type of offer?

I am open to other ways of selling my recipes, but this seems like a pretty fair trade: He’s not sure how well my product will sell in his area, and I’m not a hard-nosed capitalist looking to squeeze every dollar from someone.


An offer to license my food product.

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2 Replies to “An offer to license my food product.”

  1. Are they “licensing” your product or simply reselling?

    What kind of license would this be? Are they going to produce the product themselves?

  2. If I understand this correctly, they will pay you a cut for every retail sale they make of product they produce using your recipe? I would be concerned about quality control as well as liability if they produce a bad batch of product. Plus- your reputation is on the line downstream if they do not treat customers well in their area.

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