> He is allowed to have and has employees.An article that was posted to HN last year [1] profiled several convenience store franchise holders who, it sounded like, weren't making enough money to afford employees.
After all, if your country has 1.5 jobs per job seeker, raising wages; and you're only making $20 an hour of sales on the overnight shift, you're going to be losing money on that shift.
Of course, you might argue that a business that marginal should just close down - but if you spent $$$$ setting up, stocking and advertising the store, which might have seemed a good investment before another store opened nearby cutting into your sales, the decision to close down might not be an easy one.
It also says that 7-11 has an "area-dominant strategy" where, essentially, having a high density of franchise stores is their business strategy. That's in contrast to many franchises that include an area of exclusive territory, so there's one successful franchise rather than two struggling ones.
[1] https://www.japantimes.co.jp/news/2019/05/27/national/behind...