Pittsburgh, PA asked in Business Formation for Pennsylvania

Q: What to do if someone wants to buy a food recipe off you for a business and you want a percentage of the company

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2 Lawyer Answers
Barbara Berschler
Barbara Berschler
Answered

A: You will need to enter into a trade secret agreement in which in exchange for letting them know the recipe, you would get some percentage. Best to work with an attorney in the drafting of the agreement.

Michael Cherewka
Michael Cherewka
Answered
  • Wormleysburg, PA
  • Licensed in Pennsylvania

A: you really need to meet with your own business attorney to discuss not only the sale of the recipe but also all the issues with being a less than 50% owner in someone else's business. you may prefer a royalty agreement (% of sales) to being a co-owner

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