When a person is hired at a company they are not expected to go out and find as many employees as they can and hire them. The company just hired a new engineer and he has not been asked to hire a bunch of engineers to come in and find even more engineers. We just needed one because that is all the work there is to be done. MLM’s need you to recruit as many people as possible even if the market is saturated. That right there makes no sense what so ever.
Now when it comes to franchising. McD’s and others do not have another one right across the street. There are territories, and if the market can handle it you will see another one a mile or 2 away.