Contracts You Need When Working with a Copacker
Before you enter into a relationship with a copacker, you need to draw up a few contracts. A copacker is a manufacturer that produces your products on your behalf. If you’re a small business just starting out, using a copacker to manufacture your products is a great way to scale your business. Outsourcing your manufacturing needs gives you more time to focus on growing your business and reaching more customers.
What is a Mutual NDA for a Copacker?
A mutual NDA is an agreement that both you and your copacker sign to protect your business's secrets. An NDA stands for “non-disclosure agreement” which means that you can have open discussions about your business secrets with a manufacturer without fear of them being stolen. Even if you don’t enter into a business with the manufacturer, your confidential information is protected even after you end negotiations. All you have to do is answer a few questions, print out the agreement, and sign. It’s that simple!
What is a Copacker Agreement?
A copacker agreement is a contract that explains the business terms between your business and the contract manufacturer. This agreement specifies how, when, and where the products are to be made and delivered on behalf of the brand owner. There are many items covered in this contract, including product pricing, payment terms, recipe protection, a promise by the manufacturer not to compete with your product, FDA compliance, and more! This agreement is very easy to use and understand. All you have to do is fill out a few questions and print! It’s that simple!
What happens if I don’t have these contracts?
If you don’t have these contracts in place, then your business and assets are not protected. For example, if you disclose your recipe to a manufacturer but don’t have a non-compete clause in your agreement, the manufacturer is free to use your recipe and produce a product that competes with your brand.
How US Imports can help you with these contracts
US Imports makes contracting easy. Our specialized team of experts have crafted industry-specific agreements and our online portal guides you through the contract so you can choose the specific information to insert into the contract. US Imports has made the self-guided process easy. All you have to do is purchase the contract and fill out a few questions. You and your copacker sign the agreement and your business assets are protected before, during, and after business negotiations. There’s no need to do anything else. US Imports has got you covered!
Takeaway
Taking simple steps to protect your business is crucial for success. Failing to do so could result in serious legal troubles. Here at US Imports, we want to help make the process as easy as possible at a price you can afford.
