News

Utah town sued for blocking Subway franchise

August 19, 2010

Town officials in Springdale, Utah refused to grant a fire inspection that would clear the way for a Subway franchise to open, claiming the restaurant would violate the ban on "formula restaurants."

In 2006, Springdale, which has a population of about 500 people, voted in favor of the ban to protect its charm, according to USA Today. The town has been voted as one of the "20 Prettiest Towns" in the U.S. by Forbes Magazine.

But the efforts to protect that charm have seemed to backfire. A group of eight investors have sued the town, its officials and attorneys, challenging the ordinance. The plaintiffs claim they have a Constitutional right to open a Subway franchise. The lawsuit was filed in June in a U.S. District Court.

The ordinance specifically prohibits formula restaurants and delicatessens because they're "in conflict with the town's general plan."

Springdale officials drafted the ordinance after studying other towns in the U.S. with similar bans in place, including seven cities in California and Sister Bay, Wisc.