"Valencia merchants said that allowing Club Pilates on the corridor would hurt small businesses trying to compete with a franchise this large. They added that opening the door to one chain would mean possibly opening the door to others, incentivizing landlords to wait for higher bidders to rent commercial spaces on Valencia."
"San Francisco's planning code requires formula retail - businesses with more than 11 locations and at least two "standardized features" like same color, signage, uniforms or trademark - to obtain a conditional-use-permit to open a business in the Valencia commercial corridor."
"Applicants Carrie Wu and CJ Liu, who already own a Club Pilates in Diamond Heights, Mountain View and have secured permits to open in Nopa, hoped to persuade the commissioners, that despite qualifying as a formula retail, their business was to operate independently from Club Pilates because as franchisees they have the control over operations."
""It's about building a brand on Valencia and taking it out into the world. It's not taking a national brand or international brand and bringing it to Valencia," said Ron Elder, a Valencia neighbor of 20 years and the owner of Hi-Hat at 1432 Valencia St."
The San Francisco Planning Commission voted to deny a permit for Club Pilates to open on Valencia Street. All commissioners except Amy Campbell voted against the conditional-use permit after nearly 20 neighbors and business owners spoke in opposition. Merchants argued a large franchise would harm small businesses, encourage landlords to seek higher bidders, and erode Valencia's unique aesthetics. San Francisco planning code requires a conditional-use permit for formula retail. Franchisees Carrie Wu and CJ Liu argued their studio would operate independently, create local jobs, and serve nearby customers, but most commissioners remained unconvinced.
Read at Mission Local
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