If successful, the challenge could halve the number of days the market operates or force it to change to running on Sundays.
The challenge has regulars at the market seething, and dozens have signed a petition against any change.
"Aunty" Rose Henry from Ohinewai has been going to the market for 15 years to support her nieces who sing there and sell CDs of their renditions of country music hits and other easy listening tunes.
She thought Forlongs, which has complained of market goers affecting access to the shop and an increase in shoplifting, was being "greedy".
"You get all walks of life coming here and you also don't see any of the other businesses complaining. They know that it's good to have over 3000 people coming here on Saturdays."
Frankton butcher Jim Ashton was among those business owners who believed shifting the market day would spell its doom.
His own business does up to 30 per cent of its weekly trade on Saturdays when people come for the market.
"You wouldn't find a place like this anywhere in Hamilton, the only thing like it would probably be in Otara," said Frankton
"It's just a colourful place, it's got a really good feeling."
Campaigning for re-election at the market was Hamilton West MP Tim Macindoe, who was also in the camp that preferred not to see change to Sundays.
The National Party MP said the market had become an institution in Hamilton and regularly attracted good numbers of people.
He was also concerned that shifting the market to Sundays would adversely affect the Pacific Island stall holders, many of who were church-goers.
The Hamilton City Council has said it will undertake a full consultation process to determine the future of the market.
Forlongs company representatives have met mayor Julie Hardaker and the council's city infrastructure general manager, Chris Allen, to discuss the situation.
Mr Allen said Forlongs saw significant benefits to the retailers and the wider community in shifting to a Sunday.
He said the council had agreed with Forlongs to arrange for an independently facilitated meeting of interested parties to see if agreement could be reached on a long-term option for the market.
Further public consultation would follow before Christmas.