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

After years 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 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, it’s likely that you will 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, it’s also important you pay attention to the legal side of the business and the legal issues to consider when buying a bakery. At the end of the day, you are running a business, which warrants that certain legal requirements must be met.

Licensing, Qualifications and Permits

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

Food Business License

Firstly, you must get the correct business license from your local council. Depending on the category your food business falls into (E.g. restaurant, hotel, bakers etc.) different rules and regulations apply. Each state dictates their own food business classifications so it is advised that you visit the appropriate website provided below to check which classifications apply to your bakers:

• NSW – http://www.foodauthority.nsw.gov.au/ip/starting-a-food-business
• ACT – http://health.act.gov.au/c/health?a=sp&did=10192956
• VIC – https://www2.health.vic.gov.au/public-health/food-safety
• QLD – http://www.health.qld.gov.au/foodsafety/
• SA – http://www.health.sa.gov.au/pehs/food-index.htm
• WA – http://www.public.health.wa.gov.au/2/786/3/food_informatio.pm
• NT – https://nt.gov.au/industry/hospitality/food-safety-and-regulations
• TAS – http://www.dhhs.tas.gov.au/peh/food_safety

Remember, each council implements different licence costs and processing times, so it is best you check with your local council when applying.

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 come in many forms, and it is a decision for management as to which type of training you provide your staff, i.e. 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 bakers.

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