Sounds like the franchise owner also owns the place they rent, which seems tobe common. Sometimes, not always, it's because they'll rent it out making more than if it was just left to the market because they'll cram an extra 1 or 2 people in and still charge the same amount per person, so desperate immigrants will accept it.

Not that they're always doing this, there have been ones I've read about where the rental was fine and the price was comparable to the market. But not all are scrupulous.