Two executives of a regional food company are regular customers and big fans of

Question

Two executives of a regional food company are regular customers and big fans of Frank’s All-American BarBeQue. They recently learned that Frank has been selling his sauces in local grocery stores and have been a big hit. The executives bought jars of each flavor, took them back to their company, and talked to the people who would decide about adding products to their line. Everyone loved the sauces, and there was definite interest in acquiring the sauce-making side of Frank’s business. It would fill a hole in their product line that they had been looking to fill.The company contacted Frank about its interest, and Frank—with some urging from his son, Robert—is thinking about it. It would provide Frank with a nice retirement (when he decides to do that), money for his son and daughter, and a legacy. How should Frank proceed?

Explanation / Answer

Explanation:

Frank must go for the idea to create a legacy of himself and to leave a mark for himself. If Frank patent his recipe for sauces and company is ready to pay him royalties for his work he could make a fortune out of it. Frank should have made a contract that the product will receive his name and there would be margin of profit for him in sale of sauce in retail market.

Additionally the contract should state that recipe of sauces would not be published commercially so that there will be no unnecessary duplication of work and avoid competition in market for product. Contract should have been made in order to profit Frank and earn him till he lives.

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