Let’s talk food business! Say you are a home-baker and are wanting to turn your passions and hobby into a real business. What is needed from a legal perspective?
Well, first you’ll want to familiarize yourself with the Federal Food & Drug Administration, aka the FDA. The FDA is responsible for protecting the public health by ensuring the safety, efficacy, and security of human and animal food in the U.S. (as well as cosmetics, drugs, and dietary supplements).
Next, you’ll want to explore the requirements for you specific food business (sale or service? what ingredients?) in your specific state. This will take some digging on your part since every state is unique, but this article should give you a basic understanding and the tools to look up what you need for your own business.
While I can’t possibly fit all legal requirements for a food business into a single blog, here is a sampling of some of the most important items for you to understand and comply with as the new owner of a food business.
Disclaimer: Start Up Heart Up, LLC is not a law firm or a substitute for an attorney. We cannot provide any kind of advice, opinion, or recommendation about possible legal rights, remedies, defenses, selection of forms, or strategies. This publication is designed for general information purposes and does not constitute legal advice. See your attorney about your specific situation.
1. Food Business Basics
General State Licensure.
Every state is different, but food businesses are generally regulated by each state’s department of agriculture and/or department of public health. For example, in Georgia all food sales establishments must obtain a license from the Commissioner of Agriculture. Similarly, all food services establishments must obtain a permit from the Department of Public Health.
Home-Based Food Businesses.
Check to see if your state has a “Cottage Food” program, which will set forth the regulations and requirements for setting up your home-based food business.
Mobile / Food Truck Businesses.
In Georgia, food trucks are considered food service establishments, and are thus licensed and inspected by the Dept. of Public Health. Most states have some sort of explainer document to get you started (and pro tip, there’s always a number you can call to talk to an actual human whose job it is to help you comply with state & local law).
FDA Registration of Food Establishments.
Facilities that manufacture, process, pack, or hold food that is intended for human or animal consumption in the U.S. must register with FDA before beginning these activities. The registration requirement does not apply to any facility that is specifically exempt, such as farms, retail food establishments, and restaurants. Under federal regulations, a home / private residence is not a “facility” and thus, is not required to be registered with FDA.
Safe & Sanitary Manufacturing Practices.
Current Good Manufacturing Practices, aka cGMP regulations, require that food offered for sale or introduced into interstate commerce is produced under safe and sanitary conditions.
2. Labeling Requirements
Ingredient List.
For the ingredient list, the listing of each ingredient must be in descending order of predominance by weight.
Allergens.
FALCPA identifies eight foods as major food allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, and soybean. On April 23, 2021, the FASTER Act was signed into law, declaring sesame as the 9th major food allergen. Although labeling of sesame as an allergen will not be required until January 1, 2023, it would be prudent to include it now.
For allergens contained as ingredient the label must use language such as the following: “Contains [allergen], [allergen], and [allergen].”
If the flour use for the food product is made with wheat, the label must disclose “wheat” here.
If the food product contain egg, the label must disclose “egg”, etc.
For allergens not contained as ingredient, but as risk for cross-contamination, the label may use language such as the following: “may contain [allergen] or “produced in a facility that also uses [allergen].”
Origin of Product Manufacture
Also required on the label is the name and address of the manufacturer, packer or distributor; the street address if not listed in a current city directory or telephone book; as well as city, state, and ZIP code.
Read more about these and other FDA regulations for food labeling HERE.
QUESTIONS?
Email hello!@startupheartup.com with your food business or other legal questions. I am constantly building out this page with resources to make the process simpler for small biz owners. Your questions are valid and valuable to this community!