Apply for a cottage food operator (CFO) permit
You can 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. In order to do this in Santa Clara County, you must get a permit from the Department of Environmental Health.
What to know before starting a CFO
CFO versus Microenterprise Home Kitchen Operation (MEHKO)
Steps to obtain a CFO permit
Two types of CFOs: Class A and Class B
How to operate a CFO
Changes after CFO permit issuance (new labels, change permit category, cancel permit)
Helpful resources
List of approved Cottage Food Operations
What to know before starting a CFO
A cottage food operation is a business owned by an individual. It must be operated in the kitchen of the CFO’s private home. As a CFO, you must meet certain requirements that include, but are not limited to, the following:
- Apply for and maintain a valid CFO permit prior to operating;
- We will not issue CFO permits to these entities:
- Limited liability company (LLC)
- Corporation (Inc.)
- Partnership, etc.
- Make a food listed on the cottage foods list, as approved by the California Department of Public Health (CDPH);
- Receive approval from Department of Environmental Health 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;
- Renew your CFO permit annually. CFO permits are valid for one year and not transferrable. If you move, reapply for a permit; and
- 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 A | Class B | |
| Direct Sales | Direct sales only to the end user/consumer in the state. | Direct sales to the end user/consumer in the state. |
| Indirect sales | Not allowed | Indirect sales to third-party permitted food facilities in the state are allowed. For example, Class B CFOs may sell to restaurants, grocery stores, bakeries, etc. They may not sell to businesses that do not have a valid health permit, such as a clothing store. CFO products sold or served by the third-party retailer 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. | Limited to $150,000 Subject to annual adjustment based on the California Consumer Price Index after 2022. |
| Home inspections | No 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*) |
*Fee category numbers listed in parenthesis. For current fees, see our fee schedule.
CFOs and MEHKOs 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.
| CFO | MEHKO | |
|---|---|---|
| Prepare, cook, and serve potentially hazardous foods such as meat, poultry, rice, pasta, eggs, cooked vegetables. | Not allowed | Allowed |
| All food must be prepared, cooked, and served on the same day. | Not required | Required |
More differences - and similarities - between CFOs and MEHKOs
Steps to obtain a CFO permit
Follow these steps to apply for a cottage food operation permit:
- Submit the CFO Permit application packet, including all supporting documentation as listed on the first page of the application packet, and payment of the New Operating Permit Application [review] Fee (FP90) to the department.
- Incomplete applications will not be processed. Double-check your application packet before submitting it.
- 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.
- Submit your application package to us by:
- Mail;
- In-person at our office: 1555 Berger Dr. San Jose, CA 95112;
- By email to [email protected]
- We will email an invoice for the application fee.
- The initial application review may take up to 20 days after we have received both your CFO complete permit application packet and payment of the application fee. Applications requiring revisions may be subject to additional fees. Fees are not refundable or transferable.
- If we approve your CFO permit application, we will email an invoice for the applicable CFO annual permit fee (FP40 or FP41). After we receive payment confirmation, we will issue your CFO permit.
How to operate a CFO
- Follow food safety measures.
- Operate within established gross annual sales limits as defined by Class A or B CFO types; (see below).
- 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.
- Product claims
- 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:
- If you identify your product or any ingredients as organic, you must register with the California Department of Food and Agriculture. For more about CDFA's State Organic Program, consult these CDFA resources:
- CFO may not make health or nutrient claims.
- Gluten-free claims:
- 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.
- Include the following in your websites, social media, newspapers, newsletters, and other channels:
- 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]
- To submit product labels for new products, additional fees (FP97 - currently $298) may apply.
- 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.