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The philosophy of "eat local" dominates restaurants in downtown Frederick, but a city franchisee is hoping to add "eat fresh" to the mix.

Sharad Doshi of Frederick, who has owned the Subway on West 7th Street for two years, is preparing to open a second franchise at 69 S. Market St., next month.

Doshi said the new shop would fit in with others on Market Street, and bring more options to the downtown dining district. "Subway's always a healthy food, and people will have more choices to have healthy food," he said.

The phase-in of corporate, regional and franchise businesses in downtown Frederick has been marked by mixed reactions over the years, according to merchants, city officials and business leaders.

The opening of corporate chains on Market Street such as Starbucks, which opened almost two years ago, has been marked by some opposition. Other businesses such as Five Guys Burgers and Fries and Ben & Jerry's Homemade Ice Cream, which joined Market Street a little more than a year ago, did not face as much opposition.

Richard Griffin, director of the city's Office of Economic Development, said Tuesday that his office surveyed residents and business owners last year, and found that the reception of national chains depends on what level of the business ladder they fall on.

National chains that are corporate-owned are less acceptable than those owned by local franchisees, he said.

However, Griffin said that according to the survey, people believed that a mix is healthy, preferably 80 percent locally owned to 20 percent corporate.

He said that about 98 percent of downtown businesses are locally owned.

"While we need to continue to watch the ratio ... I think it's an overall sentiment that downtown is incredibly healthy and there's a healthy mix," Griffin said. "People clearly articulated that they were interested in independent retail, but recognized that a mix may not only be appropriate, but healthy for downtown."

Griffin said it will be important to work with the incoming administration to figure out how to maintain the ratio.

This sets Mayor-elect Randy McClement (R) to have to approach the debate about keeping locally owned downtown businesses thriving from two angles.

McClement said Tuesday that he and his wife, who have owned Market Bagel and Deli for almost 10 years and whose deli is located about a block from the new Subway location, have concerns about the new competition.

"As a small business owner, it's more direct competition to me," McClement said. "We are concerned about it, and we'll address it the way we address any business concern. "I'll just have to start emphasizing things that are different about us."

McClement said that as mayor-elect, he has no set policy plans for how to address the issue of chain restaurants in downtown, but it's something that will stay on his radar.

"Do I think that franchise businesses go well in a downtown historic district? No," McClement said. "On the other hand, it's free enterprise. If Subway and Starbucks feels it's a niche for them in downtown Frederick, then so be it."

But another longtime local business owner said he believes that the city should take measures to ensure that Frederick stays conducive to independent businesses.

Bruce Derrick, who has owned Crabapples in downtown Frederick for 22 years, said he expressed concern to the city about the shop's opening.

"I'm upset about it," Derrick said. "One of the things that bring people to Frederick is that it's unique. You keep bringing in chains, we'll become cookie-cutter."

Derrick said that given the economic conditions, downtown businesses need all the help they can get to continue to thrive.

"I don't mind competition — I thrive on competition — but let it be fair competition," he said. "The small entrepreneur made Frederick. Then they come in and say, ‘Look how well they're all doing.' We can't afford that."

E-mail Erica L. Green at egreen@gazette.net.