Phoenix (August 24, 2010) — At a population of only 500, the charming tourist node of Springdale, Utah is a
picturesque setting and appropriately dubbed as one of the “20 Prettiest Towns” in America by a 2008 Forbes magazine travel article. The Town’s 2006 ordinance that bans “formula restaurants” has mixed reviews from travelers as some think it would ruin the “feel” or “uniqueness” of this small town while others believe in a free-enterprise right to open a franchise restaurant.
A group of investors believes the ordinance to be unconstitutional and is suing the Town, 16 of its officials and its attorney for the right to open a Subway restaurant franchise. Some contend that the challenge may prevail if it can be proven that Springdale attempted to limit business ownership to local investors through this ordinance.
Springdale’s Zoning Ordinance prohibits a variety of businesses, including formula restaurants and delicatessens, because they are found to be in conflict with the Town’s General Plan. The Town looked at various municipalities across the country while preparing this ordinance. Sample ordinances from Maine have not been challenged in their similar ban which was established to protect local character. An ordinance in Wisconsin however is being challenged by a developer that coincidentally wants to open a Subway restaurant.
Read more in USA Today…
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