The girls did not have a business license and required permits, WSB-TV reported. The girls were in operation for just one day last week before the crackdown; they were trying to raise money to go to a water park.
Police say the children needed a business license, peddler's permit and food permit to operate the stand, even on their lawn.
The girls were not arrested or charged, WSVA-TV said, and the police say they are working with attorneys to find a solution or a compromise to the issue.
The girls are now doing yard work and chores for money to go to the water park.