Product Development Terms and Conditions

These Terms and Conditions (“Terms”) govern all Product Development Projects undertaken with GP Labs Co (“Company,” “we,” “our,” or “us”). By placing an order or engaging in product development services, you (“Client”) acknowledge and accept these Terms.

Our standard practice is to subsidize Research & Development (“R&D”) efforts in exchange for retaining the intellectual property (“IP”) created. Alternatively, under our Special Terms and Conditions, Clients may obtain ownership of the IP upon completion of the project.
 
1. Standard Terms and Conditions:
1.1 Commitment Fee: An upfront, non-refundable Commitment Fee is required at the commencement of all Product Development Projects. This Fee covers all samples and revisions necessary to complete the product’s development.
1.2 R&D Credit:

• The Commitment Fee will be credited toward future production orders of the specific product developed, applied pro-rata to the first 7,000* units ordered.

• These credits (“R&D Credits”) do not expire but may only be applied to the product for which the Fee was paid.

• R&D Credits are non-transferable and cannot be applied to other projects or SKUs.

1.3 Intellectual Property: In consideration of the subsidized R&D and application of R&D Credits, GP Labs Co will retain full ownership of all intellectual property rights, including but not limited to formulations, methods, know-how, and trade secrets created during development.

• The Client agrees that GP Labs Co shall remain the exclusive manufacturer of the final formulation.

1.4 Threshold: The 7,000-unit threshold is the standard minimum for applying R&D Credits. For exceptionally small products, GP Labs Co may require a higher threshold.

2. Special Terms and Conditions – Formulation Charged as a Service:
2.1 Formulation Service Fee: If the Client wishes to obtain ownership of the IP, a non-refundable Formulation Service Fee will be charged in lieu of subsidized R&D. A custom quote will be provided upon request.
2.2 Scope of Service: The Formulation Service Fee covers all samples and revisions necessary to complete product development. No R&D Credits are provided under this arrangement.
2.3 Deliverables: Upon Client approval of the final sample, GP Labs Co will deliver a comprehensive formulation report, including:

• Manufacturing instructions

• Ingredient concentrations

• Quality specifications

 
3. General Terms and Conditions (Applicable to All Projects):
3.1 Revisions:

• Up to 3 revisions are offered, provided that comprehensive feedback is supplied for each revision.

• GP Labs Co reserves the right to decline reworking aspects of the formulation that were previously approved or addressed in prior rounds of revisions.

3.2 Samples:

• Due to laboratory equipment limitations, samples will be provided in net weights ranging from 1 oz to 4 oz.

• Samples are provided in standard laboratory packaging, which may differ from final packaging.

• Samples are intended for evaluation of formulation, consistency, and sensory qualities, not as finished product mockups.

3.3 Packaging: Product development projects do not include custom packaging sourcing unless expressly stated in writing.
3.4 Lead Times

• GP Labs Co strives to meet expected lead times but cannot guarantee them.

• Formulation projects may encounter unforeseen challenges requiring troubleshooting or internal revisions.

• Each sample revision undergoes stability testing, and multiple internal adjustments may occur before a stable version is shipped.

3.5 Consistency and Production Standards: GP Labs Co guarantees that the ingredient list and concentrations in production will match the final approved R&D sample, subject to industry-standard tolerances (e.g., third-party calibrated and audited scales). Minor variations in scent intensity or consistency may occur due to differences in production scale.
3.6 Amendments: We may update or amend these Terms at any time without prior notice. The version applicable is the one in effect as of the date of the Client’s order.
 
4. Acceptance:
By placing an order, the Client acknowledges and agrees to be bound by these Terms. GP Labs Co appreciates the opportunity to support your business and remains committed to delivering safe, effective, and high-quality products.