Outsourcing Work

[CJS_SHD_91]

Default Outsourcing Work
Greetings,

I will start off by apologizing if this isn't the right location for this post. I tried to search for similar topics, but couldn't find anything for my specific questions. I am in the process of starting an embroidery company. The plan is to embroider hats, shirts, patches, etc. Currently, I solely have done design work for a lot of clients who have gotten my designs embroidered. I would like to start doing my own embroidering, but would like to build a clientele base prior to spending the money on the necessary equipment. For now I would like to outsource all my embroidering needs to another company, but do no know the legalities behind it. If a client sends me a design and I just send it to the embroidery company, I wouldn't really play a role other than essentially being a middleman.

My main questions are, how do I do this legally? Do I need to let a client know that the embroidery work isn't mine, but another company? Do I need to let the embroidery company know that I am selling their product to someone else, but under my name?

Any help would be greatly appreciated!

Thanks in advance,

CJ

[Owen]

Default Outsourcing Work
Greetings,

I will start off by apologizing if this isn't the right location for this post. I tried to search for similar topics, but couldn't find anything for my specific questions. I am in the process of starting an embroidery company. The plan is to embroider hats, shirts, patches, etc. Currently, I solely have done design work for a lot of clients who have gotten my designs embroidered. I would like to start doing my own embroidering, but would like to build a clientele base prior to spending the money on the necessary equipment. For now I would like to outsource all my embroidering needs to another company, but do no know the legalities behind it. If a client sends me a design and I just send it to the embroidery company, I wouldn't really play a role other than essentially being a middleman.

My main questions are, how do I do this legally? Do I need to let a client know that the embroidery work isn't mine, but another company? Do I need to let the embroidery company know that I am selling their product to someone else, but under my name?

Any help would be greatly appreciated!

Thanks in advance,

CJ

You don't have to necessarily tell them flat out, but if they ask it wouldn't hurt to tell them that you do it through a 3rd party. However, don't go around saying everything you do is custom like a legit embroidery company would do, as that's scamming them.

[Business Attorney]

As long as you deliver what you promise, and don't make any untrue claims ("we do all work in our own shop"), I see no reason to tell either the customer or the embroiderer specifically what you are doing unless they ask. Unless you have an agreement that prohibits subcontracting the work, you have the right to fulfill your obligations however you best see fit.

[CJS_SHD_91]

Thanks for the responses. Honestly, that's kind of what I've been told and have thought.