Seller Addendum

This Seller Addendum ("Addendum") supplements the Hearth Terms of Service at /terms ("Terms"). By opening a Studio, listing products, or accepting orders, you ("Artisan," "Seller," or "you") agree to this Addendum and the Terms.

If there is a conflict, this Addendum controls for seller-specific topics (permits, payouts, prohibited items).

You are an independent operator, not an employee, partner, joint venturer, or agent of Hearthmade LLC. You control your recipes, pricing, hours, and handoffs. You are solely responsible for compliance with federal, state, county, and city laws that apply to your products.

You perform services outside Hearth's usual course of business, are free from Hearth's direction and control over how you prepare or sell your goods, and are independently established in your trade. Hearth does not schedule your production, require specific recipes, or treat you as staff.

If Hearth later offers optional seller services (such as photography, fulfillment, or delivery routing), those services will be governed by separate terms and will not change your independent status for your core Studio sales unless you separately agree.

You represent and warrant that you hold, and will maintain, all permits and registrations required for your track, including as applicable:

You agree to upload truthful permit documents, keep expiration dates current, and stop selling on Hearth if a permit is revoked, suspended, or expired.

Hearth may review uploads and display verification badges, but review is not a government inspection and does not shift legal responsibility to Hearth.

California distinguishes Class A and Class B Cottage Food Operations (CFOs). Class A permits generally cover direct sales to consumers (for example, in-person at your home or at a permitted event). Class B permits may allow additional indirect sales channels depending on your permit and county rules.

Hearth checkout collects payment and coordinates orders between Neighbors and Artisans. You are solely responsible for confirming that your CFO class and county registration authorize how you sell on Hearth, including whether platform-facilitated checkout qualifies as a direct or indirect sale under California Health and Safety Code Section 113758 and your county's rules.

Annual gross sales caps apply under state law (updated periodically by CDPH). As of 2025, Class A annual gross sales are capped at approximately $86,206 and Class B at approximately $172,411. You are responsible for tracking your own totals across all sales channels.

Hearth may surface permit guidance in studio checklists but does not verify your permit class against each order type. Consult your county environmental health department or counsel if you are unsure.

Microenterprise Home Kitchen Operations (MEHKOs) are authorized county by county in California. San Diego County's MEHKO program is active and permanent. Requirements vary by county; you must follow the rules for the county that issued your permit.

San Diego County MEHKO operators must generally comply with all of the following while selling on Hearth:

MEHKO adoption is county-specific. At least 18 California counties have adopted MEHKO ordinances, but major metros such as Sacramento and San Francisco may not. Do not select the MEHKO track unless your county has an active program and you hold a valid permit.

Hearth may surface county-specific caps in studio checklists and batch tools. You are responsible for verifying current county rules.

You are solely responsible for ingredient lists, allergen warnings you choose to publish, safe handling, labeling, temperature control, and honest photos. You must not misrepresent where or how items are made.

You are solely responsible for accurate offering kinds, shelf classification, and listing descriptions. Checkout tax codes come from each listing's offering kind. You agree to indemnify Hearth for losses, penalties, interest, or audit costs arising from miscategorized listings or inaccurate tax attestations.

You agree to indemnify Hearth for claims arising from your products, kitchen conditions, or handoffs, as described in the Terms.

Hearth does not provide general liability, product liability, or food-borne illness insurance for Artisans.

MEHKO operators must maintain product-liability insurance appropriate for home food sales before going live on Hearth. You attest to coverage in Studio settings; Hearth may request proof during compliance review.

Cottage food, garden, and studio craft sellers should strongly consider general liability and product-liability coverage (specialty insurers such as FLIP or Next Insurance offer policies for many home businesses).

Carrying coverage strengthens your own business protection and supports Hearth's intermediary role.

You may not list or sell through Hearth:

Neighbors pay through Stripe checkout. Hearth uses Stripe Connect to route funds to your connected account.

Every checkout displays a buyer-paid Community Support Fee equal to six percent (6%) of the order subtotal plus thirty cents ($0.30). That fee supports platform operations and card processing. You generally receive your listed shelf price; Stripe card processing fees are deducted per Stripe's pricing. Payout timing, reserves, and identity verification are governed by Stripe's rules and your Connect account status.

By opening a Studio you agree to the Stripe Connected Account Agreement: https://stripe.com/connect-account/legal. Disputes over frozen payouts, chargebacks, or card network decisions are between you and Stripe under that agreement.

Available and pending payout amounts shown in the app are estimates until Stripe settles funds.

Hearthmade LLC is preparing California marketplace facilitator registration with CDTFA before live sales tax collection on Hearth. Checkout tax collection stays off until that registration is on file. Once registration is complete, Hearth will collect and remit California sales tax on qualifying marketplace sales through Stripe Tax at checkout.

On qualifying platform sales, California sales and use tax is calculated at checkout through Stripe Tax based on the Neighbor's California delivery or pickup location, including state, county, city, and district components where applicable.

Hearth collects sales tax at checkout on the Platform account. Only your listed shelf price transfers to your Stripe Connect account; collected tax is not part of your payout. Hearth does not charge Artisans a separate fee for sales tax calculation, collection, or remittance. At checkout, Stripe Tax product codes come from each listing's offering kind (for example MEHKO meal, cottage shelf-stable food, raw produce, or studio craft). Your studio shelf classification supports compliance records, permit tracking, and attestation. You remain responsible for accurate offering kinds and listings. Your studio shelf classification records compliance and permit tracking. You cannot opt out of Hearth checkout tax collection on qualifying platform sales.

Hearth's marketplace facilitator remittance applies only to sales completed through Hearth checkout. You remain responsible for sales and use tax on any sale completed outside the Platform (cash at pickup, Venmo, direct invoice, your own website, farmers market, or similar).

California law may allow a seller whose only retail sales are facilitated through a registered marketplace facilitator to skip a separate seller's permit. Hearth still asks taxable studios to keep a CDTFA Seller's Permit number on file for compliance review, mixed-channel sellers, and counsel-ready records. Consult your tax advisor.

If you also sell outside Hearth and meet California economic nexus thresholds, you may need to register with CDTFA and file returns for those direct sales even when Hearth remits tax on Hearth checkout orders.

You are solely responsible for accurate offering kinds and shelf classification. You agree to indemnify Hearth for losses arising from miscategorized listings or inaccurate tax attestations.

Hearthmade LLC will provide written marketplace facilitator confirmation to Artisans once California registration is complete. Until then, checkout tax collection stays off. Full details: /sales-tax.

You remain responsible for income tax, business licenses, and permit compliance for your kitchen or studio.

Hearth and/or Stripe may issue IRS Form 1099-K to you based on your annual gross payment volume through Stripe Connect.

Federal law generally requires Form 1099-K when you exceed $20,000 in gross payments and 200 transactions in a calendar year (threshold restored for 2025 and later). California may impose separate thresholds. Whether and when a form is issued is determined by Stripe and applicable law at year end.

You are responsible for reporting all income from Hearth sales on your federal and state tax returns, regardless of whether you receive a 1099-K. Consult a tax professional for your situation.

If you cancel a batch, orders may be automatically refunded according to Platform rules. Neighbors receive the full checkout amount on a full refund, including the Community Support Fee. You agree to honor confirmed orders unless you cancel through the Studio tools or law requires otherwise.

When an order is fully refunded, collected sales tax is reversed and Hearth adjusts its remittance records. Partial refunds reverse sales tax in proportion to the refunded amount.

Repeated cancellations, no-shows, or unsafe handoffs may lead to suspension.

We may suspend or remove Studios for permit fraud, safety complaints, chargeback abuse, or violation of this Addendum. You may close your Studio by contacting support; outstanding orders must be fulfilled or refunded.

We may update this Addendum with notice in the app. Material changes may require renewed acceptance before you publish new batches.

Seller support: handmade@hearthmade.app