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Apply for a cottage food operations permit

The County of Santa Clara's Department of Environmental Health is the local enforcement agency that permits and inspects the County's cottage food operations (CFOs) under the California Retail Food Code. 

woman frosting a cake

You can apply for a CFO permit to prepare and repackage certain non-potentially hazardous (non-perishable) foods in your private home kitchen, then sell or distribute them to the public from your home kitchen.

What to know about CFOs 
Apply for a CFO permit 
Advertisements, claims, sales, and delivery
Helpful resources
List of approved Cottage Food Operations

Fee Schedule

 

What to know before starting a CFO

A CFO is an individual who owns and operates a cottage food operation in the kitchen of their private home. 

  • Get and maintain a valid CFO permit;
  • We will not issue CFO permits to these entities:
    • Limited liability company (LLC)
    • Corporation (Inc.)
    • Partnership, etc
  • A CFO may have up to one full-time equivalent food employee (paid or unpaid). Immediate family or household members are not considered employees of the CFO,
  • CFO permits are valid for one year and not transferrable.  If the operator moves, a new permit is required. 

As a CFO, you must meet certain requirements that include but are not limited to the following:

  • Prepare foods on the cottage foods list approved by California Department of Public Health (CDPH);
  • Receive approval of product labels for all cottage food products.
  • Get and maintain a valid food handler card by completing a food processor training course: Food handler card - approved providers list.
  • Follow food safety measures.
  • Operate within established gross annual sales limits as defined by Class A or B CFO types; (see below).
  • Be sure to obtain zoning approval by the local authority (contact your city office) and any other licenses/approvals required to operate a home business. 

Permit comparison

 Class AClass B
Direct SalesDirect sales only to the end user in the state.Direct sales to the end user in the state.
Indirect salesNot allowed

Indirect sales involving third-party retailers in the state are allowed. 

Third party retailers must have a valid health permit.  CFO products sold or served must be identified as made in a home kitchen, or the CFO product label must be provided to the customer.

Gross annual sales

Limited to $75,000

Subject to annual adjustment based on the California Consumer Price Index after 2022.

Current maximum annual sales limits. 

Limited to $150,000 

Subject to annual adjustment based on the California Consumer Price Index after 2022. 

Current maximum annual sales limits. 

Home inspectionsNo routine home inspections. Additional fees may apply for inspections conducted in response to a consumer complaint or food-borne illness investigation.One routine home inspection per year.
New operating permit application fee (FP90)$446 to be submitted with your application.$446 to be submitted with your application.

Annual permit to operate

A 25% late penalty fee applies for permit renewals if payment is not received by permit expiration date.

$298 (FP40)
(Due prior to initial permit issuance and annually to renew the permit.)
 		$652 (FP41) 
(Due prior to initial permit issuance and annually to renew the permit.)
 
New product label review (after CFO permit issuance)$298 (FP97), unless submitted at time of permit renewal.$298 (FP97), unless submitted at time of permit renewal.
Fee for additional time required to review revisions or resubmittals, for complaint investigations, and for follow-up inspections$298 per hour (FP97)$298 per hour (FP97)

Current fee schedule

CFOs and microenterprise home kitchen operations (MEHKOs) are different from each other. Allow individuals to prepare and sell food from their home kitchen but are different from each other. MEHKO allows for people to make a wide variety of foods (beyond what is approved for CFO) from their home kitchen.  A residence may only have one CFO or one MEHKO.

 CFOMEHKO
Prepare, cook, and serve potentially hazardous foods such as meat, poultry, rice, pasta, eggs, cooked vegetables.Not allowedAllowed
All food must be prepared, cooked, and served on the same day.Not requiredRequired


More differences - and similarities - between CFOs and MEHKOs

Apply for a CFO permit

Follow these steps to apply for a cottage food operation permit:

  1. Submit the CFO Permit application packet, including all supporting documentation, and payment of the New Operating Permit Application Fee (FP90) to the department.
    1. Incomplete applications will be rejected.  Double-check your application packet before submitting it.
    2. Qualified veterans can submit the Affidavit for a Veteran’s Permit Fee Exemption to be exempt from the permit fee; they must still pay the application review fee.
  2. Submit your application package to us by:
    1. Mail;
    2. In-person at our office: 1555 Berger Dr.  San Jose, CA 95112; 
    3. By email to [email protected]
      1. We will email an invoice for the application fee.
  3. When we have both your CFO permit application and payment of the application fee, allow for up to 20 business days for the initial application review. Applications requiring revisions may be subject to additional fees. Fees are not refundable or transferable.
  4. If we approve your CFO permit application, we will email an invoice for the applicable CFO permit fee (FP40 or FP41). After we receive payment confirmation, we will issue your CFO permit.

 

Advertisements, product claims, and sales and delivery

Apply these rules to your CFO.

Advertisement

Include the following in your websites, social media, newspapers, newsletters, and other channels:

  • The county of approval
  • Permit number
  • A statement that the food is “Made in a home kitchen” or “Repackaged in a home kitchen,” as applicable.

Product claims 

These rules apply to both the CFO products and their ingredients.

  • Gluten-free claims:
    • Gluten-free claims for your CFO products and ingredients are not allowed. Usage of "gluten-free" and similar terms is regulated by FDA and not allowed for CFOs, even if you use ingredients that claim to be gluten-free.
  • Organic claims:
  • CFO may not make health or nutrient claims.

Sales and delivery

  • The state publishes current maximum gross annual sales limits.
  • Sales and delivery limited to occur within California.
  • Class B CFOs may sell through a third-party, permitted food facility in California. 
  • Sales may not be conducts on platforms such as Amazon or Etsy.
  • Cottage food products may be delivered to customers in person or through a third-party delivery service. Transactions and deliveries are limited to the state.
  • To sell at locations other than your home, you must obtain additional permits. For more information: permits to sell at community events, certified farmers' market, or compact mobile food facilities.

 

Changes after CFO permit issuance

  • New product labels
    • To submit product labels for new products, additional fees (FP97 - currently $298) may apply.  
      • There is no review fee for up to 1 hour of review time if new labels are submitted at the time of permit renewal. 
    • New labels may be submitted as a single PDF or Word Document to the department email, [email protected]    
  • Upgrade Class A CFO permit to Class B CFO permit
    • Submit an updated CFO permit application packet and Facility Evaluation Application Fee (FP01). State that you have a current CFO permit and want to upgrade it.  A home inspection is required prior to application approval.   
  • Downgrade Class B CFO permit to Class A CFO permit
    •  Submit an updated CFO permit application packet; no fees due.  State that you have a current CFO permit and want to downgrade it. No inspection required.
  • CFO moves
    • Permits are not transferrable.
    • Must apply for a new CFO permit.
  • No longer operating
    • If you are no longer operating, e-mail the Department at [email protected] to cancel your permit.

 

CDPH – CFO website:

AB1144: 

  • Established higher annual gross sales maximums with annual adjustments for inflation based on the California consumer price index.
  • Allows delivery by third-party delivery services.

AB831:  

  • Requires all advertisements, websites, social media, etc. to contain:
    • The county of approval.
    • The permit or registration number.
    • A statement that the food prepared is “Made in a Home Kitchen” or “Repackaged in a Home Kitchen,” as applicable.

SB972: