Franchises

Something I wonder about franchises is how much better they’d do financially if they were more careful about where locations were allowed to be put up. We learned last year that Starbucks was having problems. There is a Starbucks in my town. Less then one mile away there’s a Target with a Starbucks inside it as well as a Barnes and Noble with a Starbucks inside it. I realize that some franchises are individually owned but in this world nothing is free, meaning Starbucks must be getting a percentage from them. Why not only allow one location within a certain geographical area? Wouldn’t that make more sense financially?