At Twincraft, we want you to own your formulas, therefore we try to make transfer of ownership as easy as possible for brands who request it. So, what are the elements of Formula Ownership and how can you own your formula? Let’s start with a simple analogy to make this relatable.

Think of a formula and the Factory Making Instructions (FMI) as though you were making a cake in your own kitchen. You need just a few things to be successful; a recipe (the formula), baking instructions (FMI), some raw materials and an oven. Most often, the recipe is developed by Twincraft, so ownership belongs to us. Likewise, as we develop the recipe, we also need to understand what type of mixer we should use, at what speeds and for how long, the order that ingredients should be added, when to mix the dry ingredients with the wet, how long to “cook it” and at what temperature. The fact is, in most cases, the baking instructions for one cake are not dissimilar to any of the cakes we make of that type, maybe it just has a different frosting flavor or color. However, different types of cake require different baking instructions, so we’ve developed different methods for most. Occasionally, a customer provides us with a recipe they want us to make for them, but more often than not we need to alter the recipe or the baking instructions (or both) to make it work on our mixers and in our ovens.

Whether you want to own your formula or not, Twincraft will provide the full Quantitative Formula Breakdown (QFB) for regulatory compliance. Sharing this information does not transfer who owns it, although we make no effort to conceal it. But if ownership is the goal, first we need an agreement on the value of the formula you seek to own. You can buy your formula outright for a lump-sum payment, you can commit to a volume of finished good units over a predetermined period, or some combination thereof. We’re flexible here. Once achieved, we deliver a list of suppliers for all raw materials, finished product specifications, and results from all tests performed by Twincraft.

Twincraft has developed certain proprietary methods to make bar soap, skincare products and deodorants over decades. Retaining ownership of our technology is paramount for us if we are to remain in business. Therefore, the FMI is not for sale, but we will make it available to you by licensing it for your use. The license you receive will be a royalty-free, non-exclusive, world-wide license to use our technology for the limited purpose of sourcing an alternate supplier.

There’s a lot that goes into a Formula Ownership Agreement, but at a high-level the concept is simple. We understand your motivations as a brand and we want to make the process smooth and painless, to the extent that a legal agreement can be either of those things.

Ask your Director of Sales about Formula Ownership and if its right for your brand. We’re ready to help!



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