Beach Franchisee Defaults In OC

OCEAN CITY— Despite granting an extension and favorable terms for catching up, resort officials this week were left with little choice but to terminate a midtown beach rental franchisee and debar him from future consideration.

In August, Randy Dougherty, operator of the beach rental franchise for the parcel between 57^th Street and 59^th Street came before the Mayor and Council requesting an extension for his installment payments owed for July and August. The franchisee cited a slow start to the season, including bad weather through much of June, along with other economic challenges, for the reason for the request of the extension.

Dougherty told the Mayor and Council his business at the midtown parcel had since picked up and he anticipated getting back on track, but was seeking more time to get caught up. City Clerk Diana Chavis said the franchisee was seeking a 30-day extension, hopefully seeking to pay his $4,000 July payment in August and his $4,000 August payment in September. As a show of good faith, Dougherty brought a check for $2,000 to the meeting as a first installment of sorts.

Every three years, the town bids out the beach rental franchises by different areas throughout the town and the successful bid for the parcel between 57^th Street and 59^th Street came in at $10,000 per year for each of the three years, or a total of $30,000.

Dougherty did make his full payment in 2021, but for the aforementioned reasons, he struggled with making the 2022 installments, which is why he sought the extension plan that was ultimately granted. However, Chavis explained since the council voted to grant the extension, unforeseen circumstances arose that led to the franchisee defaulting on the payment program.

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