How much could one sell a recipe for? 4 Answers as of June 22, 2015

My mother has been approached by several local restaurants interested in buying one of her recipes. How much does a recipe typically sell for?

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Webb IP Law Group
Webb IP Law Group | Jason P Webb
It would depend a lot on the recipe and how much business the recipe is likely to attract for the restaurant. Also, it would be important that the recipe be kept secret and that you agree to keep it secret from competitors. Since you have several local restaurants interested, your best bet may be to do some kind of auction. That way you sell it to the one who values it the highest.
Answer Applies to: Utah
Replied: 6/22/2015
Law Office of Kirk Buhler
Law Office of Kirk Buhler | Kirk A Buhler
The price is generally what the market will pay. They probably just want to pay $100 - $1,000. It will also depend upon if she sells it to one restaurants or to multiple restaurants. It will also change if it is single royalty or paid each quarter based upon the number of people that order the recipe. Here is an example of how you might want to determine the value. Change the numbers to match what you think is reasonable. Cost for the meal $10 Royalty could be 1 - 6% Let's assume 2% so $0.20 per order. 10 people order the food per night $0.20 royalty * 10 people = $2.00 per night 365 day in a year. A year or royalty is $730. If you use a similar formula you will be able to make an argument for how much to sell. Just play with the royalty and the number of people who will order.
Answer Applies to: California
Replied: 6/19/2015
Sebby Law Office
Sebby Law Office | Jayne Sebby
There is no standard price. It's up to the two parties to negotiate a deal. The price for the exclusive rights to a recipe would be higher than for non-exclusive rights. The price could also be a flat one-time payment or a percentage of sales for a defined period of time. The price will also be higher if this is a recipe for a popular dish that the restaurant really wants to include on its menu.
Answer Applies to: Nebraska
Replied: 6/19/2015
Banner & Witcoff, Ltd. | Ernie Linek
Name your own price! There is no set value for a recipe. Let the other side make the first offer - if it is high enough - SELL.
Answer Applies to: Massachusetts
Replied: 6/19/2015
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