Name recognition does come into play but most of the high level events teams still have to play their way in or have a decent enough resume for the TD / review committee to get in.
I do think some of the franchise teams are decent and compete with the mother teams however "most fall" way short in tournament quality and player quality when the brand starts hitting 20 or more states and 3 or more teams in each age group.
You can actually over saturate a market and looking through the websites of three of the more well known franchise business model organizations and the team rosters/schedules it is evident.
One org has 5 teams in one city at the same 16u age group.when you look at 2017 most did not even play a national.
http://www.texasgloryfastpitch.com/
https://firecrackersoftball.com/#
https://www.batbusters.org/
Now in state home grown organizations it is easier to grow with acquisition by bringing in already established coaches and teams into the organization that may be coming from independent or smaller organizations. The main reason teams switch organizations is to try to get better talent = bigger tryouts and maybe coat tail some of the success of the organization with tournaments. For the organization inviting teams ensuring the pipeline of 10/12s are in the organization and in some cases can get talent for the other older teams. Most of these types of mergers however are not a pay to join situation like you find with the national clubs. Most teams still have their own financials, schedule etc. but may be required to purchase uniforms, equipment, spirit wear etc through the organization where the cost usually is less due to the quantities. Having 3 teams leave an organization can be a concern unless, the organization may be down sizing for quality. In years past teams were more age specific but as more teams look to compete in bigger nationals that do not offer a first year or mix first and second year teams a lot of organizations are going with 10,12,14,16,18 teams in order to get the strongest talent available in those age groups. Sometimes a team leaves an organization because the organization wants to keep age specific as well.