Help required with Licensing

[Faceman]

This is my first post on here, so please take it easy on me, usually the newbies on forums get a rough ride, hoping this place is a little more civil and respectful.

Ok, here is my predicament. I have recently come across a fantastic piece of cooking equipment related to the fast food industry that is 100% unavailable in the UK maybe anywhere else in Europe. It heralds from Asia, and it is used to cook certain types of favoured western food in a more healthy yet full flavoured way.. and i mean full flavoured!

The equipment could be used by me to set up a fast food operation and sell a particular types of food cooked in this unique way... not a chance in hell anybody else is doing this as I have researched the market for months.

It would be a massive gimmick and I'm sure a huge success... but I have zero background in retail/catering/food, I actually work in Finance.

Not sure what to do, the fast food operation is a great dream, and I'm sure the gimmick and the absolute health and taste advantages would be a surefire hit.... healthier just supremely juicy tasty fast food.

So anyway, I am now thinking maybe would it be a better idea to get into an exclusive agreement with the producer of the equipment and maybe become the exclusive distributor of the product in the UK and sell to pubs, fast food operations etc.

Not sure how this would work and how I would stay protected etc

Help!!

 

[Faceman]

anybody help out?

 

[Faceman]

From doing a bit of research on the net it appears what I am after is an Exclusive Distribution Agreement... is this right?

 

[TotallySport]

do you have the funds to go through with this, and your looking at big money to be a real contender as a fast food outlet?

 

[Faceman]

do you have the funds to go through with this, and your looking at big money to be a real contender as a fast food outlet?

I think the future for me is maybe getting an exclusive agreement to be the sole distributor of the product and then pitching it to fast food outlets, major retailers, do trade shows etc.... as opposed to setting up my own outlet and using the product to produce my own uniquely cooked food.

Sales is really my number one attribute, and having a product that I totally believe in and know for a flying fact that once demonstrated will have people going wild, gives me the drive and motivation to go this route.

 

[James Greg]

If you are so sure about it's success the I would suggest you become the sole distributor. There's no harm in securing your business.

 

[Faceman]

If you are so sure about it's success the I would suggest you become the sole distributor. There's no harm in securing your business.

This product has been in existence for many years out there, nobody has ever really bothered to market it.

Very much doubt one single quantity has ever been sold in Europe let alone the UK, so that leaves me in a strong bargaining position when it comes to negotiating the exclusivity agreement... one hopes!

 

[fisicx]

You can only get an exclusivity deal if there is only one manufacturer of the product. If you can but it anywhere then it means anyone can buy and distribute the thing.

And if there is no patent then it can be copied so again that blocks any exclusivity deal.

 

[Faceman]

You can only get an exclusivity deal if there is only one manufacturer of the product. If you can but it anywhere then it means anyone can buy and distribute the thing.

And if there is no patent then it can be copied so again that blocks any exclusivity deal.

They are the only manufacturer and have all the patents on it, first thing i checked

 

[TotallySport]

I think the future for me is maybe getting an exclusive agreement to be the sole distributor of the product and then pitching it to fast food outlets, major retailers, do trade shows etc.... as opposed to setting up my own outlet and using the product to produce my own uniquely cooked food.

Sales is really my number one attribute, and having a product that I totally believe in and know for a flying fact that once demonstrated will have people going wild, gives me the drive and motivation to go this route.

No body in there right mind will give away sole distribution rights unless your going to place an order, with enough stock to make it worth their while, then you'll have to store and maintain that stock.

Either ways its not going to be cheap.

 

[Faceman]

No body in there right mind will give away sole distribution rights unless your going to place an order, with enough stock to make it worth their while, then you'll have to store and maintain that stock.

Either ways its not going to be cheap.

I fully understand that, I have circa 75,000 sterling to invest in this venture.

 

[Paul Kelly ICHYB]

Faceman,

a lot depends on the product, supplier and market.

If you get exclusivity, you will probably be tied to certain things e.g. minimum annual volumes. Be very careful before you commit to this.

Also, be aware that, in many cases, the supplier may just start selling to other importers if the product becomes popular, regardless of agreements.

Tread carefully and PM me if you have some sensitive questions.

 

[James Greg]

I fully understand that, I have circa 75,000 sterling to invest in this venture.

Faceman,

It seems you have enough to invest and you are all pumped to try your luck with this. I personally suggest you buy one lot of, say 100 pcs of this, try marketing it and see what are the results. If they are satisfactory and meets your standards then go for the the distributor rights, sign the deal and if there is any international certification for such rights sign those too. I think 100 pcs will give you a clear picture of what the future is for such product.

 

[Faceman]

Faceman,

It seems you have enough to invest and you are all pumped to try your luck with this. I personally suggest you buy one lot of, say 100 pcs of this, try marketing it and see what are the results. If they are satisfactory and meets your standards then go for the the distributor rights, sign the deal and if there is any international certification for such rights sign those too. I think 100 pcs will give you a clear picture of what the future is for such product.

Thank you, this is exactly what I am planning to do.

Makes sense rather than going headlong into something that may not have legs.

 

[James Greg]

Thank you, this is exactly what I am planning to do.

Makes sense rather than going headlong into something that may not have legs.

Of course you should look at all the aspects before diving in. As you say the product has been used in Asia all this time and not marketed in UK, but think on the other side too what was the reason for that after all there are many Asians living in UK and many have visited Asia and they might have seen that being used too. If no one ever bothered to market it in UK or in EU then I suggest you do not invest all your hard earned money at once. Plan steps to proceed with the product keeping yourself safe from facing any loss.

But I wish these concerns would turn out false and you have great luck with your product and marketing campaign.

 

[Faceman]

Of course you should look at all the aspects before diving in. As you say the product has been used in Asia all this time and not marketed in UK, but think on the other side too what was the reason for that after all there are many Asians living in UK and many have visited Asia and they might have seen that being used too. If no one ever bothered to market it in UK or in EU then I suggest you do not invest all your hard earned money at once. Plan steps to proceed with the product keeping yourself safe from facing any loss.

But I wish these concerns would turn out false and you have great luck with your product and marketing campaign.

Be hard to respond to some of these points without giving too much away, I am currently seeking patenting/IP rights for the UK.

 

[K-rado]

Have you considered implications of this product with respect to CE ( european conformity) Yes, you will need it here to and overides some aspects of the BS as in British Standard.
If you say it has not been marketed in the EC, then it is unlikely to have the nesessary documentation/declairations in place. You will need to factor in the costs of this and depending what exactly it is, it could easily eat into your £75k.

 

[Faceman]

Have you considered implications of this product with respect to CE ( european conformity) Yes, you will need it here to and overides some aspects of the BS as in British Standard.
If you say it has not been marketed in the EC, then it is unlikely to have the nesessary documentation/declairations in place. You will need to factor in the costs of this and depending what exactly it is, it could easily eat into your £75k.

not looked into this, but thanks for the heads up.

 

[Nick Dougan]

Dear Faceman,

You have absolutely nothing to lose in having a discussion with this supplier about a distribution agreement.

To be realistic, however, if you have no track record in marketing these sort of products in the UK I think that it's unlikely that you're going to be given exclusive rights. The best you might be able to get is a short period to show what you can do, and the possibility of exclusive rights thereafter. And why not - you've got to start somewhere!

Nick