Formula Business Restriction – McCall, ID

In 2006, McCall, Idaho, a town of 2,000 people located approximately 100 miles north of Boise in central Idaho, enacted a formula business restriction on restaurants and retail businesses.  The ordinance limits formula restaurants and formula retail businesses to only 10% of the total number of restaurants and 10% of total “like businesses” in McCall, respecitively.  

McCall’s city code defines “like businesses” as “those which have substantially the same product offering, such as food stores, furniture stores, auto parts stores, etc., and is not the total quantity of all categories of like businesses.”  The city uses business license information to help classify businesses appropriately.  The ordinance exempts gas stations and supermarkets.

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Full Text of Ordinance:

RESTAURANT, FORMULA: An eating establishment devoted to the preparation and offering of food and beverages for sale to the public for consumption either on or off the premises which, by contractual or other arrangement, established or recognized business practice, or membership affiliation, maintains any of the following:

(A) Business name common to a similar business located elsewhere;

(B) Standardized menus, ingredients, food preparation, uniforms, or other standardized features common to a restaurant located elsewhere;

(C) Interior decor common to a similar business located elsewhere;

(D) Architecture or exterior signs common to a similar business located elsewhere;

(E) Use of trademark or logo common to a similar business located elsewhere (but not including logos or trademarks used by chambers of commerce, better business bureaus, or indicating a rating organization including, but not limited to, AAA, Mobile or Michelin); or

(F) A name, appearance, or food presentation format which causes it to be substantially identical to another restaurant within or outside Valley County.

3.8.17: RESTAURANT, FORMULA LIMITATION:

Restaurants, formula as defined in chapter 2 of this title, are limited to no more than ten percent (10%) of the total number of restaurants in McCall and area of city impact. (Ord. 821, 2-23-2006, eff. 3-16-2006)

RETAIL, FORMULA: A retail, service retail, or restaurant business (including fast food and coffee shops) that is required by contractual or other arrangement to maintain standardized services, merchandise, menus, ingredients, food preparation, uniforms, decor, logos, architecture, signs, or similar features.

3.8.18: RETAIL, FORMULA BUSINESS LIMITATION:

Retail, formula businesses, as defined in chapter 2 of this title, are limited to no more than ten percent (10%) of the total of like businesses in McCall and the area of city impact. "Like businesses" in this context are those which have substantially the same product offering, such as food stores, furniture stores, auto parts stores, etc., and is not the total quantity of all categories of like businesses. Service stations and supermarkets are not subject to this restriction; provided, that these uses are not combined with formula restaurants or other formula retail with a different product offering. (Ord. 821, 2-23-2006, eff. 3-16-2006)