I’m buying a bakery. What legal issues should I consider?

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Table of Contents

• Licensing, Qualifications and Permits
• Food Business License
• Food, Health and Safety Regulations
• Basic Training
• Conclusion

After years of working in the industry, you’ve finally decided to branch out and buy your very first bakery. Congratulations! Buying your own business can be the culmination of all those years spent building your skills and growing your customer base, but the reality is that buying a bakery is not always a simple task. Without a thorough understanding of the legal issues involved when buying a bakery, it can become a costly exercise and one that could end up as a failed venture.

As the owner of your very first bakery, you will likely be involved in hiring and training your own staff, sourcing the best quality suppliers to give you the best quality flour, grain, yeast and other products, managing the books and making sure you have the highest standard of customer service. However, paying attention to the legal side of the business and the legal issues to consider when buying a bakery is also essential. At the end of the day, you are running a business, which warrants that specific legal requirements must be met.

Licensing, Qualifications and Permits

In purchasing your very own bakery, it is important to make sure you obtain the right business licenses that comply with requirements in the state or territory in which you wish to buy your bakery.

Food Business License

Firstly, you must get the correct business license from your local council. Different rules and regulations apply depending on the category your food business falls into (E.g., restaurant, hotel, baker’s, etc.). Each state sets its own food business classifications, so it is advisable to visit the appropriate website to determine which classifications apply to your bakery.

Food, Health and Safety Regulations

Under the Australian New Zealand Food Standards Code (FSANZ) and Food Act 2003 (NSW), bakery businesses must satisfy the food and safety regulations.

Basic Training

In terms of staff training, it is a legal requirement to offer proper training that encompasses basic training, as well as food safety and food handling. Training programs can take various forms, and management must decide which type of training to provide for staff, such as online, classroom, manuals, and in-house training.

Conclusion

Remember, buying and running a successful bakery business does not rely solely on a passion for bread and baked goods (although this helps). It is crucial that you comply with the relevant state or territory laws, or risk significant penalties and potentially even having your business closed before it even gets off the ground. Various legal issues, such as food, health and safety requirements and licenses/permits, are vital when buying a bakery. These considerations can be complex and confusing, especially when added to the stress of negotiating the purchase of the business as well. It is strongly recommended that you talk to a lawyer when considering these factors so that you receive expert legal advice when purchasing your bakery.

A business purchase lawyer at LegalVision will gladly assist you with buying a bakery, so do not hesitate to call us at 1300 544 755.