Overview
The Landscape
Food and beverage companies face a complex web of regulatory, licensing, distribution, and IP challenges — from the moment a recipe becomes a product. Whether you are launching a CPG brand, opening a restaurant group, or scaling a food franchise, Shah Grossi provides the business and regulatory counsel you need to move fast and stay protected.
Key Legal Challenges
- —Navigating FDA regulations, labeling requirements, and health claims
- —Securing and maintaining liquor and beer/wine licenses
- —Protecting proprietary recipes, formulations, and brand identity
- —Negotiating distribution, co-packing, and retail placement agreements
- —Managing food safety liability and supply chain contracts
Common Scenarios
Problems We Solve
- 01
A CPG brand launches with packaging labels that approach FDA health-claim territory without a substantiation file — and a single consumer complaint or FTC inquiry triggers an expensive reformatting.
How we help: Risk & Compliance
- 02
A distribution agreement grants category or territory exclusivity without clear performance obligations — locking the brand into an underperforming distributor with no exit mechanism.
How we help: Contracts · Dispute Resolution
- 03
A co-packing arrangement exposes proprietary formulations without adequate trade-secret protections, NDA scope, or post-termination restrictions — and the co-packer eventually produces a competing product.
How we help: Intellectual Property
- 04
A successful restaurant concept considers franchising or licensing but has not documented operating standards, trademarks, or financial performance data sufficient to support an FDD.
How we help: Franchise & Distribution · Expansion & Growth
Our Work
How We Help
ABC licensing for restaurants, bars, and retail food operations
Trademark registration and trade secret protection for recipes and brands
Distribution agreements, co-packing contracts, and supplier terms
Franchise documentation for food service concepts
Commercial lease negotiation for food and beverage locations
Regulatory compliance for labeling and marketing claims
Legal Services
Related Practice Areas
Common Questions
Frequently Asked
Q.What FDA requirements apply to food labels?
The Nutrition Facts panel, ingredient statement, allergen disclosures, net quantity statements, identity of the food, and manufacturer information are required on most packaged foods. Labeling claims (natural, organic, gluten-free, low-fat, etc.) have specific regulatory definitions and substantiation requirements. California adds Prop 65 warning requirements for products containing listed chemicals. Label review before printing is far cheaper than a post-market reformatting.
Q.Can I protect my recipes and formulations?
Recipes are not copyrightable, but they can be protected as trade secrets with proper controls — NDAs, limited access, appropriate handling procedures, and contractual restrictions with co-packers, suppliers, and employees. Some unique formulations may qualify for patent protection, though the cost and disclosure trade-off rarely favors food patents. Trademark protection for the brand name and trade-dress protection for distinctive packaging are complementary strategies.
Related: Intellectual Property
Q.What should I watch for in a distribution agreement?
Territory and category exclusivity scope and duration, minimum performance obligations, termination rights if performance is not met, payment terms and chargebacks, intellectual property protections, end-of-term inventory handling, and indemnity and product-liability allocation. Exclusivity without performance obligations is one of the most common traps — it locks the brand into a single distributor regardless of results.
Q.Do I need a liquor license to sell beer or wine in my CPG product?
In California, manufacturers, importers, distributors, and retailers of alcoholic beverages all require specific ABC license types. Direct-to-consumer interstate shipping has its own state-by-state regime. Non-alcoholic beverages do not require ABC licensing, but "low-alcohol" and hemp-derived cannabinoid beverages face their own regulatory questions. The licensing analysis should be done before product development, not after.
Related: Liquor Licensing
Q.Can I franchise my food concept?
Often yes. Food service has been one of the most active franchise categories for decades. Concepts need documented operating standards, registered trademarks, a defensible financial-performance story, and the operational infrastructure to support franchisees. Harold Kestenbaum's depth in the firm's franchise practice makes us one of the experienced groups for food-concept franchising nationally.
Related: Franchise & Distribution · Franchise Systems
Ready to Discuss
Your Food & Beverage Matter?
We respond to all inquiries within one business day.