The parent company doesn't get a blank check though. That's the risk with franchising. Some franchisee may do something stupid and it reflects poorly on the parent. That's why most franchise agreements are very one-sided.
Here's a perfect example of how a franchisor can play hardball. I worked for a McD's that was a dominant store in our region. Located right off the Interstate and got tons of consistent traffic. Just an excellent, very profitable store. But our owner/operator was a dick to Corporate. So they opened a new store at the next offramp. "Offered" it to our operator, but the terms were ridiculous, so he passed on it. Found someone to take it, and we dropped 30% in sales. Back in the 80's that cost our owner $80K in lost PROFIT. He was pissed.
Here's a perfect example of how a franchisor can play hardball. I worked for a McD's that was a dominant store in our region. Located right off the Interstate and got tons of consistent traffic. Just an excellent, very profitable store. But our owner/operator was a dick to Corporate. So they opened a new store at the next offramp. "Offered" it to our operator, but the terms were ridiculous, so he passed on it. Found someone to take it, and we dropped 30% in sales. Back in the 80's that cost our owner $80K in lost PROFIT. He was pissed.