Bakery Term
Food facility registration
Definition
The federal registration a bakery owes once wholesale passes retail sales.
Why It Matters
The cottage food exemption describes a kitchen barred from wholesale and wholesale concentration describes a bakery that has crossed into it. This is the actual boundary, and it is a ratio and not a license. A retail food establishment is one whose sales of food directly to consumers exceed its sales to all other buyers, and the definition says outright that consumers does not include businesses. So a bakery at forty-eight per cent wholesale is exempt and the same bakery at fifty-two per cent is a registered federal facility. Three things follow for a buyer. The registration does not transfer, so the seller cancels within sixty days of the sale and the buyer registers fresh, and a gap is a prohibited act. Renewal runs in a window every other year. And a plan to add wholesale accounts is a compliance build and belongs in the model.