No, it's really not. All she has to do is follow the MINIMAL health department sanitation rules.
And I'm certain her mother knew this because if she didn't, she's just plain stupid.
Running a business out of your home is one thing, but to be preparing food as that business is another.
Like I said before, I don't particularly care to partake of a cupcake made with flour riddled with mouse poop.
And being under the guidelines of the health department assures that someone can walk in any time and make sure there are no mice pooping in the ingredients.
Can you imagine contracting something like the Hantavirus, or some other life threatening crap because mice had crawled around and through the ingredients used to make something you purchased to eat? Because an eleven year old who was too young to take a food handling course and the parents didn't either?
Nah, the guidelines aren't all that strict, to make a residential kitchen into a perfectly acceptable commercial kitchen. However, I don't think it would be allowed to be used as both.
Regardless, she's sucking in enough donations locally, and now nationally, to build an entire new house with two kitchens.