Did you know if you came up with a super hot recipe for something and manage to gain exclusive rights to said recipe you could make a bundle of money. Especially if that recipe is picked up by a world famous restaurant like Popeyes Chicken.
Until Monday June 16th, 2014, Popeyes did not own its “core recipes”. The recipes previously belonged to the family of Popeyes founder Al Copeland and Popeyes had been paying $3.1 million in annual royalties to license them from Diversified Foods and Seasonings LLC, a company owned by Copeland’s estate. On June 16th, Popeyes bought the recipes outright for when for $43 million dollars.
How did Popeyes wind up not owning the recipes for its own menu products? Businessweek reports that a 1990 bankruptcy reorganization forced founder Copeland out as chief executive of the chain’s parent company. Copeland became a franchisee of numerous Popeyes restaurants and retained the rights to its recipes; DFS went to his estate after he died in 2008.
The 43 million purchase does not sever ties between Popeyes and DFS. Popeyes said DFS will continue to supply it with proprietary spices and other products under an extended licensing agreement.