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. 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 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.

We strongly recommend that all Artisans maintain general liability insurance appropriate for their track. CFO and MEHKO sellers should consider food-specific home-business liability coverage (specialty insurers such as FLIP or Next Insurance offer policies for many home food businesses).

Proof of insurance may become a trust badge in the app over time. 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.

Hearth is not currently registered with CDTFA as a marketplace facilitator. Hearth does not collect or remit California sales tax on your behalf.

When sales tax lines appear at checkout, amounts are calculated for transparency and passed through to you. You remain solely responsible for reporting and remitting tax to CDTFA under your own Seller's Permit, or for qualifying exemptions you attested to in studio settings.

You must provide accurate tax registration information in go-live setup and update it when your status changes. Hearth will notify Artisans in the app before any change to facilitator registration or remittance programs.

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

Federal reporting thresholds are changing: $5,000 for tax year 2024, $2,500 for 2025, and ultimately $600. California may impose its own thresholds (historically $20,000 and 200 transactions). Thresholds and forms are 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. You agree to honor confirmed orders unless you cancel through the Studio tools or law requires otherwise.

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