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Towns Banning ‘Formula Restaurants’ To Preserve Their Allure

Towns Banning ‘Formula Restaurants’ To Preserve Their Allure

By Naresh Kumar on August 18, 2010

USA Today reports of several towns in America that have banned chain restaurants in order to save their regions’ charm. Springdale, a town in Utah with a population of just 500, is one municipality that has passed an ordinance and is currently resisting the opening of a Subway restaurant franchise. Their reasoning is that such formula restaurants conflict with their town’s general plan and spoils the local community’s character and economic development. On the other hand, attorneys representing the investors of these restaurants have dubbed such ordinances as unconstitutional and infringing upon their free-enterprise right to open franchises and have filed a suit against Springdale’s ordinance.

There are other towns across the country with similar ordinances as reported by USA Today:

When preparing the ordinance, Springdale officials looked at other towns across the USA that regulate formula businesses in one way or another, including Bainbridge Island, Wash.; Bristol, R.I.; Cannon Beach, Ore.; Ogunquit and York, Maine; and seven municipalities in California, including Arcata and Solvang. York and Ogunquit both have bans on formula restaurants. Paul Lempicki, land use director and code enforcement officer for Ogunquit, says his town’s 6-year-old ordinance was designed to protect the seaside town’s character and has not been challenged. This month, Sister Bay, Wis., officials approved a ban that came about after a developer submitted plans for a Subway restaurant.

Whether or not such a law helps towns attract more tourists and generate more business for their local communities remains to be seen.

USA Today: “Towns block chain restaurants to save charm”

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