This module dives into the practicalities of the various agreements and licenses that you’ll need to be aware of and obtain for your market. For the new owner/operator, we’ll aim to provide you with a starting point for finding your way through the bureaucratic layers of government departments that administer the programs and permits you may wish to access.
The final lessons tackle the topic of strategic partnerships where we will provide some helpful advice on navigating the conversation of a site agreement with a host partner.
Knowing what permits and licenses you will require for your mobile market and having an understanding of how to navigate the bureaucratic layers of various levels of different governments effectively will ensure your market gets (and remains) up and running quickly. However, if you are a new market operator, gaining an understanding of what policies, permits, and licenses you’ll need to acquire can be overwhelming. This lesson is intended to give you support through high-level guidance that will help you get this process started.
When starting out as a new owner/operator, the first question you’ll need to answer is: are you giving away food or are you selling it? You should know that your legal obligations will vary greatly depending on your answer.
When selling food, many of your dealings will be the health department that is responsible for your location. This may be your municipality, county, or state health departments depending on where you are located.
If you are giving away food, such as a mobile food pantry, much of the health department licensing may not apply. If, however, you are selling food, you should be aware of your legal obligations. The following F.A.Q. will help prepare you for what to expect:
1. What type of food are you selling?
| Type of Food | Legal Requirements |
|---|---|
| Whole fruits and vegetables | Simplest licensing, similar to a farmers market. |
| Cut fruits and vegetables | Typically, cut fruits and vegetables will require a certified kitchen commissary. |
| Meat, Dairy, Eggs | These will require specific temperature control, storage, labeling, and licensing. Ensure you are clear on these requirements. |
| Local food, wholesale food | You will need to identify your sources for purchasing in order to obtain health department licensing. |
| Canned goods, dried goods | Will you be packing any food yourself or will you purchase it all prepackaged? If you buy wholesale and package yourself, it may be less expensive, but you will need a HACCP plan (Retail & Food Service HACCP | FDA) and you’ll need to ensure you label everything correctly. |
| Hot food | See local food truck regulations where you will be selling. |
| Frozen food | You will need specific storage and temperature controls. Check with your local health department for specific requirements. |
2. Will you have nutrition/food demonstrations?
Is the food going to be prepared onsite or prepared in advance? If so, you will likely need a commissary (a certified commercial kitchen) to use as your base. You should check with your local health department for rules and regulations about serving samples onsite. Sampling should have different guidelines than food for sale. When speaking with the health department, be sure you are clear that you are just preparing samples. Samples should be treated similarly to sampling at a farmers market.
3. What happens if you make a mistake on your licensing/permit application or you want to add something at the last minute?
It’s very important to be aware that you can only sell goods you are licensed for. You can only sell additional goods to what you are carrying when you also have the license for it. If you disregard this advice, a surprise inspection by your local health department could shut down your market if your offerings do not match your paperwork.
4. Who do you talk to first? Where should you start?
This is the toughest question to answer as it will be entirely dependent upon where you reside. Your area may be regulated by your city, your county, or your state health department. You may not have an awareness of which level of government to speak to. A quick way to find out is to speak to anyone in your area who runs a commercial food truck or a commercial kitchen. They will be able to direct you to the right contact. Another source of information is your local grocery store. Grocery stores are required to display their health certifications, so take a look at who signed it to find out which authority should be your initial contact.
Once you have an initial understanding of where to start the conversation, check online for the contact information or call 211, the essential community services line. If you are still unsure of where to begin, call your local municipality, food policy council, or seek the wisdom of the crowd by asking on a platform like this.
5. How does licensing compare to food trucks?
Today, most municipalities and health departments deal regularly with food trucks, which often have their own rules, applications, fees, permits and licensing. Typically mobile markets do not fall under food truck regulations, yet some municipalities and health departments may place your market in the same category and not know how to work with you. If you find yourself in this position, you may be required to educate your department contacts in order to smoothly work with them and acquire the appropriate permits and licensing. You may even be asked to present your project to a governing body. While this may sound a bit daunting, we encourage you to use this as an opportunity to open up doors for your market by educating decision-makers about your work and the impact it is anticipated to have on the community.
6. Where will you be parking?
Will you be on private property or public property? Will you be on the side of the road, in a park, or in a parking lot? Who owns the parking lot? The topic of parking is too extensive to summarize here, so we’ve dedicated an entire lesson of this module to it.
7. What forms of payment can you accept?
- Aside from cash, credit, or debit, there are a number of government programs available to lower income/vulnerable groups that you may wish to offer to your customers, such as:
- Supplemental Nutrition Assistance Program (SNAP) and Electronic benefit transfer (EBT)
- The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
- Farmers Market Nutrition Program (FMNP)
You’ll need to ensure you have the appropriate permits/licenses in place to offer these to your customers, which we cover in more detail in the next lesson.
8. Is there an order of operations for permitting? For example, do I need to wait for SNAP until I’ve received a county license?
It’s important to be aware that you can start your SNAP application at any time. There will be several things you need to submit for this application, so you should start working on it right away. You will not receive your retailer license, however, until you have your local licensing health department/retailer licensing in place. You should expect the process to take at least several months, and you will have several back and forths with the USDA regarding additional paperwork needed.