Formation Documents, Raising Equity, and Protecting Recipes
In Edible-Alpha™ Podcast Episode #3, Part 3, Tera talks with Jeff Glazer of the UW Law and Entrepreneurship Clinic about the importance of using a lawyer (not an online cookie-cutter service like Legal Zoom) to draw up formation documents. This is important in food businesses, especially because the type of entity you form matters in terms of your strategic path to grow and what kinds of money you are able to raise to support that growth. When raising equity, it is again important to find legal counsel that understands what you need to do to comply with securities law and its required disclosures to investors or potential investors. It is also important to protect your recipes through both legal processes as well as breaking down processes of your production to assign to multiple people, mitigating the risk of another person knowing all aspects of your product production process.