Out of curiosity, what's to stop the performers from leaving & starting their own theater with those policies?
Interestingly enough... When i.o opened its current location they had TJ and Dave (a very popular improv act with a huge following - you may know TJ from Sonic commercials and Dave from Veep or Boba Fett or a bunch of other tv shows or movies) a big section of the theater and called it The Mission theater.
Their show was the draw but they had many interesting acts fill out their line up. After ~2 years they gave the ownership back to i.o and went back to doing just their show. They wanted to perform. They didnt want to run a theater.