1. Bob decides to sell chicken sandwiches along the side of the road on his prop
ID: 1132665 • Letter: 1
Question
1. Bob decides to sell chicken sandwiches along the side of the road on his property. He has all the proper State licenses. After selling his chicken sandwiches for a number of years with no complaints only to the locals in his town Bob gets a letter from the Federal government stating that he is in violation of a federal statute and as such he gets fined and is told to shut down. Bob has only sold his chicken sandwiches to his local town folks. Does Bob have to shut down and pay the fine to the federal government? Why or why not.
Explanation / Answer
Yes,Bob have to shut down and pay the fine to the federal government.
The production and sales of processed foods is governed by state and federal regulations. Each state is different, so proper advice is needed from a specialist in each state. Some states allow sales at farmer's markets of select foods; others prohibit sales altogether; these are called cottage food laws. These rules might also be called Home-Food Processing Rules or Baker's Bills. Typically, the department of health (or the department of agriculture) approves and oversees cottage food businesses. Most states now have these cottage food laws now that don't require a licensed kitchen. In those states, you can sell at a farmers market or roadside stand jams and jellies as well as baked goods that don't require refrigeration. For this you don't need a licensed kitchen or any inspections. Typically, in those states, you just need to label them with the weight or volume, our name, our address, the words "this item is home produced" and all the ingredients in order by weight. Usually, you can not do anything 'acidified', anything pressure canned, or anything needing refrigeration. While Cottage Food laws allow a person to legally bake and prepare certain foods in their home kitchens and sell them on a small scale, very few states allow them to sell to restaurants and grocery stores.
If your food product does not meet the definition of a Cottage Food, you may still be able to make and sell it commercially, through a startup approach.
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