Good idea or not, it's perfectly normal and happens all the time. In my area opening any kind of place will generally require making the local neighborhood association happy, then zoning board approval, then of course pleasing (and paying) Licenses&Inspections, etc. That isn't to say all of this is good, but it is utterly mundane.
I actually wouldn't mind if the more libertarian-minded people would focus more of their attention on this stuff instead of, you know, helmet laws and smoking bans. That isn't to say that I'd necessarily agree with them, but this stuff tends to get in the way of the economic freedom libertarians like to talk about a lot more than, say, minimum wage laws.
