Tennessee Food Freedom Act (no license, no cap), Pick Tennessee Products branding, 4% reduced grocery sales tax, and market-by-market detail from Nashville Farmers Market to Memphis Downtown to Chattanooga Market and Knoxville's Market Square.
The Opportunity
Tennessee quietly became the easiest state in the country to launch a home-kitchen food business when the Tennessee Food Freedom Act (HB 813) took effect in 2022, then expanded again with HB 130 in 2025. Unlike California's Cottage Food caps, Florida's $250,000 ceiling, or Oregon's narrowly defined Domestic Kitchen exemption, Tennessee's law has no sales cap, no licensing, no inspections, and no required food handler training for direct-to-consumer sales of homemade food. A Nashville baker can start a real business out of a home kitchen on a Saturday and sell at the East Nashville Farmers Market that Tuesday — legally — without filing a single state form for the food itself.
The state also runs Pick Tennessee Products, a 30-year-old TDA marketing program that gives Tennessee growers and food makers a recognizable on-pack and on-booth logo customers actively look for. Roughly 2,700 Tennessee farmers and farm-direct businesses are listed in the Pick TN directory — the program functions a lot like New Jersey's "Jersey Fresh" or California's "CA Grown," but with the practical advantage that Tennessee market shoppers in Nashville, Franklin, Knoxville, and Chattanooga have been trained for three decades to look for the logo as a quality-and-origin signal.
The trade-off is sales tax. Tennessee has one of the highest combined sales tax rates in the country — 7% state plus up to 2.75% local on most goods — and even at the reduced 4% state grocery rate, you'll still owe local tax on top. Vendors who plan to sell anything taxable at a Tennessee market need to register with the Department of Revenue, collect at point of sale, and file. There's no skipping that step — the Department of Revenue treats farmers market booths as taxable selling locations like any other.
Vendor Types
Tennessee's Food Freedom Act removed most of the licensing friction that defines other states' rules, but the category you operate in still controls product scope, labeling, where you can sell, and how sales tax applies. Pick the right one before you apply to a market.
Can sell: Breads, cookies, cakes, pies (including cream pies and cream-filled pastries), cheesecakes, jams, jellies, dried fruits, candies, fudge, granola, roasted nuts, nut butters, honey, maple syrup, hot sauces, spice mixes, coffee, tea blends. As of the 2025 amendment: pasteurized dairy products (butter, hard cheeses, yogurts, kefir) and poultry under the federal 1,000-bird exemption (max 75 lbs per transaction). Soups and prepared chicken (e.g. rotisserie, pot pie) are explicitly allowed.
Cannot sell: Unpasteurized milk and unpasteurized dairy. Alcoholic beverages. Fish and shellfish. Raw meat (other than the limited poultry allowance). No wholesale of perishables. No sales through restaurants. Perishable products cannot be shipped — in-person only.
Administered under Tenn. Code Ann. § 53-1-115. No license, permit, inspection, or training required. No sales cap. The required label disclosure: "This product was produced at a private residence that is exempt from state licensing and inspection." The Department of Health may investigate only in response to a reported foodborne illness — there is no routine inspection regime. This is the simplest path in the country and covers the majority of Tennessee market vendors.
Can sell: Fresh fruits, vegetables, nuts, herbs, cut flowers, mushrooms, plant starts, eggs, raw honey, and other raw farm products you grew or raised. Meat from your own livestock if processed at a USDA or state-inspected facility. Pick Tennessee Products membership is a strong branding overlay for this category.
Cannot sell: Resell produce from another farm at a producer-only or producer-first market. Sell uninspected meat. Sell unpasteurized dairy.
Most Tennessee markets are producer-first or producer-only. Nashville Farmers Market and Franklin Farmers Market both verify grower status and many do farm visits. There is no statewide producer license — your responsibility is the truthfulness of your representation and your compliance with USDA/state inspection rules for any animal products. Apply for the Pick Tennessee Products listing once you have stable production: it's free, raises trust, and gets you on the official PTP map.
Can sell: Hot meals, prepared foods, items requiring refrigeration, commercial-canned products, packaged shelf-stable items at scale, and anything sold wholesale or shipped out of state. Hot dogs, BBQ, tacos, biryani, fresh juices, ice cream, kombucha, acidified pickles and salsas with a process-authority letter — produced in a licensed commercial kitchen or commissary.
Cannot sell: Operate at scale or wholesale under the Food Freedom Act. Skip the TDA Domestic Kitchen / Food Manufacturing inspection if you're packaging for retail distribution. Operate a mobile food unit without a county health permit.
TDA's Food and Dairy Section licenses commercial food manufacturing, and county or metro health departments (Nashville Metro Public Health, Shelby County Health, Hamilton County Health, Knox County Health) regulate temporary food permits for on-site cooking and mobile food units. Permits typically run $50–$300 per event for temporary food permits and $150–$500/year for mobile food unit licenses depending on jurisdiction.
Can sell: Handmade goods — pottery, woodwork, jewelry, soap, candles, fiber arts, leather, prints, apparel, and similar craft items. Most Tennessee markets reserve a percentage of booths for craft vendors, and several (Chattanooga Market in particular) lean heavily toward craft alongside food.
Cannot sell: Resell mass-produced or imported goods at producer-/maker-only markets. Sell soap or skincare with health claims without proper labeling. Sell anything with a CBD or supplement claim without confirming the market accepts that category.
Sales tax is the main compliance lift here — non-food craft items are taxed at the full 7% state rate plus local. Register with the Tennessee Department of Revenue for a sales and use tax account before your first market. Most Tennessee market managers ask to see your sales tax certificate during onboarding.
Step by Step
Food Freedom Act home producer, farm producer, prepared food / commercial kitchen, or craft vendor. This decision controls labeling, what you can sell, and which markets accept you. Tennessee makes this easier than most states because the Food Freedom Act covers the largest single category — but it does not cover prepared food sold from a hot grill at the booth, mobile food units, or anything sold at scale to retail. Be honest about which lane you're actually in.
Form your business through the Tennessee Secretary of State — sole proprietors operating under their own name have no state filing requirement, but most vendors register an LLC ($300 minimum filing fee, $300/year minimum annual report) or an Assumed Name through their county clerk. Then go to TNTAP (Tennessee Taxpayer Access Point) to register for a Sales and Use Tax account — this is free, takes 10–15 minutes, and is required if you'll sell anything taxable. Most market managers will ask for your sales tax certificate during onboarding.
Food Freedom Act producers: no license, no permit, no inspection. You only need to label correctly with the required disclosure: "This product was produced at a private residence that is exempt from state licensing and inspection," plus your name, address, product name, ingredients, and net weight. Farm producers: no statewide license; apply to Pick Tennessee Products (free) for the branding overlay. Prepared-food vendors: apply for a temporary food permit through the local county/metro health department (Nashville Metro, Shelby, Hamilton, Knox) per event, or a mobile food unit permit if you're cooking on-site routinely.
Pick Tennessee Products is a free TDA marketing program with a 30-year-old logo Tennessee shoppers recognize. Apply at picktnproducts.org — you'll be added to the searchable directory and the Pick TN mobile app, and you can use the logo on your booth signage, packaging, and website. For value-added food makers, Pick TN requires that the product be processed in Tennessee or use Tennessee-grown ingredients when available. This is the closest thing Tennessee has to a state seal of approval, and customers in Nashville, Franklin, Knoxville, and Chattanooga look for it.
Every Tennessee market runs its own application. Nashville Farmers Market (year-round, downtown Bicentennial Mall) accepts farmer/grower, prepared food, and craft applications via Katie Cummings (katie.cummings@nashville.gov). Franklin Farmers Market (Williamson County, one of the largest in the state) is producer-juried with a waitlist. Memphis Farmers Market charges a $40 new vendor application fee ($20 returning) and $40 per 10x10 booth per week. Chattanooga Market charges $42 per booth setup plus a 10% post-event sales commission. Knoxville's Market Square Farmers Market runs through Nourish Knoxville with a separate application process.
Most established Tennessee markets require $1M general liability insurance with the market organization named as an additional insured. FLIP (foodliabilityinsurance.com), Campbell Risk Management, and Veracity are the most common providers. Annual premiums run $300–$650 for $1M/$2M coverage. Even though the Food Freedom Act removes the state licensing requirement, it does not remove civil liability — and markets, landlords, and venues will require COIs before letting you set up.
Collect the correct combined sales tax rate at every market — 7% state plus the local rate of the city or county you're selling in (Nashville/Davidson is 9.25% combined, Memphis/Shelby 9.75%, Chattanooga/Hamilton 9.25%, Knoxville/Knox 9.25%). Food and food ingredients (basic groceries) are taxed at the reduced 4% state rate plus local; prepared foods, candy, soft drinks, and dietary supplements are taxed at the full 7% state rate plus local. File monthly via TNTAP (or quarterly/annually if your liability is small enough to qualify). Late filing penalties are real and enforced.
Food Freedom Act vs. Commercial Kitchen
The Tennessee Food Freedom Act (Tenn. Code Ann. § 53-1-115) is structured around three lines, and the day you cross any of them, you've stepped out of the exemption. First: direct-to-consumer only for perishables. The moment you try to ship perishable goods, drop a pallet at a wholesale distributor, or supply a restaurant with anything that isn't shelf-stable, the exemption no longer covers that channel. Second: no restaurant sales, period — even shelf-stable products sold through a restaurant's retail counter fall outside the law as written. Third: a small list of categorical exclusions — unpasteurized dairy, alcoholic beverages, fish, shellfish, and raw red meat are flatly excluded regardless of channel.
The 2025 amendment (HB 130) materially expanded what's allowed. Pasteurized dairy products — butter, hard cheeses, yogurt, kefir — are now in scope, and poultry is allowed under the federal 1,000-bird exemption with a 75-pound-per-transaction cap. Soups and prepared chicken (rotisserie, pot pie) became explicitly permitted. Tennessee is now in the rare position of allowing categories that most states' cottage food laws specifically prohibit — which is part of why the law gets called the most permissive in the country.
If you outgrow the Act — wholesale, restaurants, retail distribution beyond direct sales, scale that needs commercial equipment — the next step is a TDA Food Manufacturing license through the Food and Dairy Section, or, for prepared food sold from a mobile unit, a county/metro health department mobile food unit permit. Both are real processes with inspections and fees, but they unlock the channels the Food Freedom Act intentionally leaves out.
Top Markets
Tennessee's market scene is geographically split — Nashville and Franklin in Middle Tennessee, Memphis in the west, Chattanooga and Knoxville in the east — and each region has a distinct flagship plus several strong neighborhood markets. Booth fees are friendlier than the West Coast or Northeast; competition for spots at the flagships is real but rarely the multi-year waitlist you'll see in Portland or Brooklyn.
Tennessee's flagship public market — open year-round, seven days a week, in covered farm sheds at the foot of the State Capitol next to Bicentennial Capitol Mall State Park. The Saturday outdoor farmers market is the highest-traffic day and the marquee selling slot for both farmers and prepared-food vendors. Application via Katie Cummings, katie.cummings@nashville.gov. Mix of grower stalls, prepared food, craft, and an indoor Market House. The covered structure means you can sell here through Tennessee's hot-and-humid summers and through the winter, which is a structural advantage almost no other market in the state offers.
Held in the historic Factory at Franklin parking area, Franklin Farmers Market is one of the largest and most heavily attended markets in Tennessee — anchored by a wealthy Williamson County customer base that turns out in volume on Saturday mornings. Producer-only with a juried application process; the market verifies that vendors actually grow what they sell. Waitlists for produce farmers are typical; prepared food and value-added makers (under Food Freedom Act) have somewhat better entry odds when the right category gap opens.
Saturday market in the Memphis Central Station Pavilion downtown, generally April through October. New vendor application fee is $40 (returning $20), and a single 100-square-foot booth space runs $40 per week — with discounts available for full-season or bi-season advance payment. "Grow, Make, Produce" mission means producer-first jurying. Strong customer base of downtown Memphis residents and weekend visitors; prepared food has a healthy presence alongside growers and value-added makers.
Operated by Public Markets, Inc., Chattanooga Market runs Sundays April through November under the First Tennessee Pavilion. The fee structure is unusual for the state — a $42 daily setup fee plus 10% commission on post-event reported sales — which aligns the market's incentives with vendor revenue. Late/walk-up registration adds $10. Heavy emphasis on craft and maker booths alongside food, plus regular themed market days (Cheese Festival, Pizza Fest, Italian Market) that drive significant traffic spikes.
Knoxville's flagship market, run by Nourish Knoxville at downtown Market Square. Wednesday (10am–1pm) and Saturday (9am–1pm) outdoor season runs roughly May through November, with a Winter Farmers Market that moves indoors. Producer-first with juried entry; agricultural and prepared food vendors most recently shifted to waitlist while craft applications cycle on a published schedule. Strong University of Tennessee, Old City, and downtown traffic — among the best foot-traffic markets in East Tennessee.
Tuesday afternoon/evening market (3:30pm–6:30pm April through October, 3:30pm–6pm November–December) at 511 Woodland Street in East Nashville. Roughly 60+ farmers, bakers, chefs, and small businesses. The Tuesday timing is a feature rather than a bug — it pulls evening commuter and neighborhood traffic that a Saturday morning market doesn't, and it's a great secondary market day for vendors who already do Nashville Farmers Market on Saturdays. Producer-first with prepared food and value-added makers as a healthy minority of the booth count.
Chattanooga's Wednesday-evening producer-focused market on Main Street in the Southside. Smaller than the Sunday Chattanooga Market and more strictly producer-only, with a higher percentage of farmers and a smaller prepared-food footprint. A strong second weekly market day for Chattanooga vendors who also sell at the Sunday market — different customer mix, different commute pattern, less craft competition.
Booth fee structure: Tennessee markets generally charge daily booth fees in the $25–$50 range, with a few (notably Chattanooga Market) layering a sales commission on top. Season-pass and multi-week prepayment discounts are common — Memphis Farmers Market offers them explicitly, and so do most of the smaller neighborhood markets. Always ask whether sales tax remittance is your responsibility (it is) and whether the market collects any additional fees per transaction (Chattanooga's 10% is the main outlier).
Budget Planning
Tennessee is one of the cheapest states in the country for Food Freedom Act home producers — there's literally no state license fee for the food itself. The real costs are the LLC if you form one, sales tax setup (free but mandatory), insurance, equipment, and per-event booth fees. Most Tennessee vendors launch for $700–$4,000 total depending on category:
Tennessee LLC filing
$300 minimum
TN annual report (LLC)
$300/yr minimum
Sales & Use Tax registration
Free (TNTAP)
Food Freedom Act compliance
Free (no license)
Pick Tennessee Products listing
Free
TDA Food Manufacturing license
Varies (commercial only)
County temp food permit
$50 – $300/event
Mobile food unit permit
$150 – $500/year
10x10 EZ-Up tent (commercial)
$250 – $600
Tables, tablecloths, signage
$200 – $500
Product liability insurance
$300 – $650/year
Initial inventory / ingredients
$400 – $2,000
POS (Square / Clover)
$0 – $300
Tent weights (required)
$80 – $200
The Tennessee compliance reality: The Food Freedom Act removes virtually all food-licensing cost — no inspection fee, no permit fee, no mandatory training. But the $300 LLC minimum filing plus $300/year minimum annual report is one of the more expensive LLC structures in the country, and combined sales tax rates in metro counties (Nashville/Davidson 9.25%, Memphis/Shelby 9.75%, Chattanooga/Hamilton 9.25%, Knoxville/Knox 9.25%) are real money you collect from customers and remit on schedule.
The Retention Layer
Tennessee vendors live across a fractured weekly schedule — Nashville Farmers Market on Saturday at Bicentennial, East Nashville on Tuesday evening, Franklin on Saturday morning forty minutes south, Memphis Saturday downtown, Chattanooga Sunday under the Pavilion, Main Street Chattanooga on Wednesday, Market Square Knoxville on Wednesday and Saturday. Customers love the products, love the maker, snap a photo, and then forget which of those you'll be at next weekend. That's the single biggest recurring-revenue leak in the Tennessee market scene, and it's worse here than in denser states because Tennessee customers often drive 15–45 minutes to a market and want to know it's worth the trip.
VendorLoop is the SMS marketing platform built specifically for market vendors. A Nashville Food Freedom Act baker who prints the VendorLoop QR on a small booth card can broadcast next weekend's schedule — \"Back at Nashville Farmers Market this Saturday, Shed 1, Booth 8, 8am–1pm\" — to every customer who opted in that day, on a Friday morning. 90%+ SMS open rates versus Instagram's roughly 3% organic reach. Unlimited subscribers on every plan including the free plan, which matters when a single Saturday at NFM or Franklin can add 40–80 new contacts. Event-level segmentation means you can message only the East Nashville Tuesday crowd when you're at East Nashville, and only the Franklin Saturday crowd when you're there — not blast everyone every time. Tennessee customers are particularly receptive to hearing directly from the maker; SMS is the channel that actually reaches them.
Pro Tip
Tennessee booth fees plus sales tax remittance, insurance, permits, and inventory mean a slow Saturday at Memphis Farmers Market or Market Square in Knoxville can clear under $300 after costs. The vendors who consistently clear $1,000–$3,000+ per market day aren't just showing up — they have a list they can text when they're headed back to that market.
VendorLoop makes it possible to collect customer numbers at your booth with a QR code and text them your next market schedule. In Tennessee's geographically spread-out scene where the same customer might see you every 3–6 weeks depending on the market rotation, staying top of mind between visits is what turns one-time shoppers into weekly regulars who plan their Saturday morning around finding your booth.
Learn MoreAvoid These
The Tennessee Food Freedom Act removes the inspection and licensing requirement, but it does NOT remove labeling. Every product sold under the Act must carry the exact statement: "This product was produced at a private residence that is exempt from state licensing and inspection," plus your name, address, product name, ingredient list, and net weight. Missing the disclaimer makes the product non-compliant under the law's terms — markets will ask to see a sample label during application, and the Department of Health can use it against you in any foodborne-illness investigation.
Tennessee's Food Freedom Act eliminates the food license but it does not eliminate your sales tax obligation. If you're selling anything taxable at a Tennessee farmers market — and almost everything except basic groceries is taxable at some rate — you need a Sales and Use Tax account through TNTAP, you need to collect the combined state-plus-local rate at the point of sale, and you need to file. The Department of Revenue treats farmers market booths as taxable selling locations. Skipping registration is the most common Tennessee vendor compliance failure.
The Act explicitly excludes unpasteurized milk, unpasteurized dairy products, alcoholic beverages, fish, shellfish, and raw red meat. The 2025 amendment added pasteurized dairy and limited poultry — it did NOT add raw milk or alcohol. Tennessee is a bourbon and craft-distillery state, and vendors regularly assume small-batch artisan alcohol falls under "food made at home." It does not. Alcohol is regulated separately under the TABC and most farmers markets don't allow on-site alcohol sales at all.
The Act is direct-to-consumer for perishables. You cannot wholesale perishable products, supply restaurants with them, or ship them out of state. Non-perishable shelf-stable items can be sold via retail stores and shipped within Tennessee — but the moment a product needs refrigeration or has a short shelf life, the in-person rule applies. A Nashville baker shipping cheesecakes out of state is operating outside the exemption and into territory that requires a TDA Food Manufacturing license.
Nashville Farmers Market, Franklin Farmers Market, Main Street Chattanooga, and the Nourish Knoxville markets all verify grower claims. Buying produce from a wholesaler or another farm and reselling it at a producer-only market is the fastest way to be banned — and Tennessee market managers compare notes. If you want to sell value-added products made from someone else's produce, apply in the prepared-food or Food Freedom Act category, not the producer category.
A Tennessee market booth might add 30–80 interested shoppers on a strong Saturday at Nashville Farmers Market or Franklin. Without a way to capture contacts, nearly all of them disappear. A QR-based signup at your booth converts 10–25% of interested shoppers into a reachable list — and in Tennessee's geographically spread market scene, where a Franklin customer might not see your Memphis booth until two months later, that list is what turns one-time shoppers into regulars who text back when they see your name.
FAQ
For the food itself, almost certainly not. The Tennessee Food Freedom Act (Tenn. Code Ann. § 53-1-115) eliminates licensing, permitting, and inspection requirements for direct-to-consumer sales of homemade food — including baked goods, jams, candies, honey, hot sauces, spice mixes, and (since the 2025 amendment) pasteurized dairy and limited poultry. Farm producers selling raw fruits and vegetables also need no state license. Prepared-food vendors cooking on-site need a county/metro temporary food permit or mobile food unit permit. Almost all vendors need a Sales and Use Tax account through the Tennessee Department of Revenue.
Passed in 2022 (HB 813) and expanded in 2025 (HB 130), the Tennessee Food Freedom Act allows home-based producers to sell food directly to consumers anywhere in Tennessee with no license, no permit, no inspection, no required food handler training, and no sales cap. Allowed products include baked goods (including cream pies and cream-filled pastries), jams, candies, honey, maple syrup, hot sauces, spice mixes, coffee, tea blends, and as of 2025: pasteurized dairy products (butter, hard cheeses, yogurt, kefir), poultry under the federal 1,000-bird exemption (75 lb/transaction max), and prepared chicken and soups. Excluded: unpasteurized milk, alcohol, fish, shellfish, raw red meat. Required label disclosure: "This product was produced at a private residence that is exempt from state licensing and inspection."
Pick Tennessee Products (PTP) is a free TDA marketing program with a 30-year-old logo that Tennessee shoppers recognize as a state-grown / state-made signal. Roughly 2,700 producers are listed in the searchable directory and the Pick TN mobile app. Producers must grow on a Tennessee farm; food manufacturers must process in Tennessee or use Tennessee-grown ingredients when available. If you qualify, applying is a strong move — the logo on your booth signage and packaging functions like Jersey Fresh or CA Grown elsewhere, and customers actively look for it at Nashville, Franklin, Knoxville, Chattanooga, and Memphis markets.
Yes, on almost everything. Tennessee's combined sales tax rate is 7% state plus up to 2.75% local — Nashville/Davidson is 9.25%, Memphis/Shelby 9.75%, Chattanooga/Hamilton 9.25%, Knoxville/Knox 9.25%. Food and food ingredients (basic groceries — bread, raw produce, milk, raw meat) are taxed at the reduced 4% state rate plus local. Prepared foods, candy, soft drinks, dietary supplements, and non-food crafts are taxed at the full 7% state rate plus local. Register for a Sales and Use Tax account through TNTAP (free), collect at point of sale, and file monthly (or quarterly/annually if liability qualifies).
Most Tennessee markets charge $25–$50 per day for a 10x10 booth. Memphis Farmers Market is $40 per week per booth (with $40 new-vendor / $20 returning application fees). Chattanooga Market is $42 setup plus 10% post-event sales commission — the only major Tennessee market with a commission structure. Nashville Farmers Market uses flat-rate booth fees published in their vendor handbook. Franklin Farmers Market is producer-juried and prices vary. Most markets offer season-pass or bi-season prepayment discounts. Also budget $300–$650/year for product liability insurance, which most markets require with a $1M minimum.
Yes — Tennessee is unusually permissive here. The Food Freedom Act explicitly allows hot sauces and (under the broader "homemade food" umbrella) does not exclude acidified products the way Oregon or many other state cottage food laws do. You produce in your home kitchen, label with the required disclosure, sell direct-to-consumer, and you're compliant. The 2025 amendment further expanded what's allowed by adding pasteurized dairy and limited poultry. The categorical exclusions are narrow: no unpasteurized milk, no alcohol, no fish, no shellfish, no raw red meat. Everything else under the homemade-food umbrella is fair game.
Yes at the flagships, less so at the neighborhood markets. Franklin Farmers Market typically has a producer waitlist. Nashville Farmers Market manages applications actively but prepared-food and craft turnover means category gaps open during the year. Knoxville's Market Square Farmers' Market through Nourish Knoxville recently moved agricultural and prepared-food applications to waitlist with craft on a rotating window. Memphis and Chattanooga generally accept new vendors when applications are open. Smaller markets like East Nashville (Tuesday) and Main Street Chattanooga (Wednesday) usually have shorter waits and can be the best entry points.
Resources
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