You have to start somewhere. The legal budget for food startups is dictated by n essential list of priorities.
Every food business has to start somewhere — and that includes planning for legal costs. The list of legal priorities isn’t endless, but knowing where to focus can save time, money, and headaches. Here’s the breakdown of a legal budget for food startups.
What Food Startups Should Budget for Trademarks
Prioritize Trademarks and Branding. IP protection for food and supplement businesses can’t be overstated. A business without a good trademark registration, is simply not building a brand with any value. A thorough Availability Opinion is a top priority, which will help to identify and presage potential issues with a trademark before the application is filled in. Trademark applications take anywhere between 75-150 days to get a review by a Trademark Examiner within the United States Patent and Trademark Office. It is important to get a good application on-track, so that by the time production is underway, the Trademark Application is getting green lights. Filing fees are $350 for new marks with 1 Classification of Goods. Estimated Attorney Time: 2 hours.
Protecting Intellecutual Property
Non-Disclosure Agreement. Once a trademark is underway, a new food start-up needs to be armed with a good non-disclosure agreement that helps facilitate conversations with future partners like product formulators and manufacturers. Company principals also need to understand the limits of non-disclosure agreements and the nature of trade secrets. It is relatively affordable expense in order to begin sharing a product recipe with commercial partners. Estimated Attorney Time: 0.5 hours.
Learn How to Manufacture Without a Factory
Third Party Manufacturing. Whether launching a private label brand or a proprietary copacked brand, a start-up CEO needs to understand the laws related to third party manufacturing. Because these are purchase and sale transactions, the Uniform Commercial Code (the “UCC”) governs most aspects of the copacker relationship. As discussed on our Services Page, a basic understanding of the Uniform Commercial Code is an essential prerequisite to negotiating these agreements with a manufacturer. Whether reviewing a manufacturer’s agreement or drafting one for custom use, Estimated Attorney Time: 2 – 3 hours.
Basic Training in Federal Regulations
Marketing and Labeling Regulations. FDA regulations affect every aspect of label design and marketing. In order to avoid having to constantly go back to the drawing board, it is crucial to involve a legal expert at every stage of food product marketing, from ideation to printing. A knowledgeable attorney can focus creative efforts towards compliance. With the right legal guidance, the final marketing copy should be good to go without more redlines. Optimally, a joint workshop on the regulations would occur before creative gets to work. The regulatory guidance creates the sandbox for the creative types to play in. Estimated Attorney Time: 2 hours.
Food start up legal costs dovetail nicely with any one of the subscription plans found here. You can check-off all of these items over a 90 – 120 day time frame and quote a bespoke legal budget to the penny.
