CHICAGO -- When James Andrews opened a hot-dog stand on this city's rough West Side, he thought he was doing a community service by hiring ex-convicts. But some in the neighborhood think the name he chose -- Felony Franks -- is a crime.

An alderman has refused Mr. Andrews permission to hang a new sign or build a drive-through lane. A pastor accused the restaurant owner, who is not an ex-convict, of "pimping out" the community. Members of a neighborhood association have vowed to stay away from Felony Franks until the name is...