How much would you ask for a recipe?

I have had all kinds of people say that my chili is the best they've ever had.
I've spent the last few months coming up with a vegan version that is very close to the original as well. Long story short there is a small restaurant chain (3 stores) that is interested in acquiring the recipe but what would I ask for it? I have no idea.
Yes yes I know, this is a Texas board and Texas owns chili...but there's room for all of us.

Hard to determine a cash value.

Maybe trade?

A % off your bill every time you're there as long as it's on the menu?

How about a percentage?

I'd say, "Make me an offer." Then counter with 4x their offer. Settle for splitting the difference between the two numbers. They'll probably lowball you, you highball them. Somewhere in between is probably a pretty fair number.

bargain dearly for the recipe....

all i know is there is a famous bar be que restaurant in lockhart, texas...

when the patriach passed away he left the restaurant to one of his children and the recipe to his bar be que sauce to the other. he felt it was more than even...

Pace picante sauce...Mr Pace developed his picante sauce beginning in the 40's in san antonio...his daughter took over from him..when she divorced her husband, he bought her out for $50 million. abt a or so year later. along came campbell's soup..they bought him out for around 1.1 billion.

the cash value of the recipe is equal to your opportunity cost. Negotiate your name on the menu with your chili, who doesn't want to have their name in print for all your friends and family to see, then arrive at a fair dollar amount for both of you. Ask them straight out what they would offer for that deal.

the cash value of the recipe is equal to your opportunity cost. Negotiate your name on the menu with your chili, who doesn't want to have their name in print for all your friends and family to see, then arrive at a fair dollar amount for both of you. Ask them straight out what they would offer for that deal. Originally Posted by runswithscissors

Somehow I think Marcus Aurelius Chili doesn't ring true.

Why are you consulting a hooker bored on this instead of someone that has actually participated in deals similar to this?

Why are you consulting a hooker bored on this instead of someone that has actually participated in deals similar to this? Originally Posted by atlcomedy

Well, since 20% of my clients own restuarants and a few of them read these boards, I think this is a good place to ask such a question. Of course now that I write this, they would be better off PMing MA so not to out themselves.

I managed a restaurant back before I sought my profession.
When they sold the place in 1978 one recipe was sold for 10K.
But then this is not a main item I have.

I appreciate the input everyone.

I will stick with Wolfbrand Chili.

I will stick with Wolfbrand Chili. Originally Posted by pyramider

Ah, a pedestrian among the elitists. [BTW, it is my favorite also.]

MA, name it Wolf Brand. Sell it for a fortune.

Why are you consulting a hooker bored on this instead of someone that has actually participated in deals similar to this? Originally Posted by atlcomedy

I managed a restaurant back before I sought my profession.
When they sold the place in 1978 one recipe was sold for 10K.
But then this is not a main item I have.

I appreciate the input everyone. Originally Posted by Marcus Aurelius

I apologize if my comment last night, even in IMO spot on, came across as a little snarky. The reality is there are a whole lot of "what ifs" & "it depends" in answering this. Add to that, on this board, you obviously don't want to be too specific. People in a position to help really don't have all the info.

Please don't take anything I say personally (&I haven't tasted your chili but if I was to do so I have every confidence it is some of the best I'd ever try), but literally somebody on every block thinks they have the best this, that, or the other thing. Many of them have even won competitions. Very few of them have any standalone commercial value. Just Google "vegan chili" and look at all the "great" free recipes that are out there.

The real value of a recipe is when it becomes branded. If I had to speculate when your former restaurant's recipe went for $10k (a good sum today...huge 3 decades ago), it has become in a sense a brand in and of itself. ( "Mom's Famous Cobbler at Ray's Steakhouse" or some such thing). It could be marketed as such.

The real question I have is what do you want to get out of this? Get rich? Become the friend of the place, have bragging rights that this place uses your chili? Maybe get a few free meals? Or maybe test the commercialization of your line of chili at a low/no cost to you? If it is the latter, I think that is the most exciting.

The best thing you have going for you is you have someone that is in business interested in your chili. Many people who think they have the world's greatest whatever (chili, ribs, gumbo) piss away a small (or large) fortune trying to commercialize their recipe (that is start a restaurant or sell to retail, etc.) because that is their only option. You don't have to do all that or take on execution risk (e.g. many great chefs aren't great restraunteurs).

I would brand my chili ("MA's Famous" etc.). Insist the restaurant sell the chili as branded. Instead of selling the recipe to them outright license its use. I won't try to go into specifics here but make sure you retain all rights. This is how you grow the value of the recipe, by growing the brand. Who knows? Maybe you do have the world's greatest vegan chili and down the road it is worth some real money?

How do you have the conversation? When it comes up the next time with the owner say, "No I'd really prefer not to sell this to you but I'd love to liscense it to you and have you sell it on your menu as a premium branded chili..."

No problem at all ATL. I took no foul.
It's going to be a no go from what I've seen and heard so far.
They want it for next to nothing and they want it all.
So if I want to be taken seriously I need some trophies I guess.

MA, Have them call it "Diamond and Tuxedo Chili."