I don’t understand a franchise setting a set amount for the nation. For example, $5 meals might lose money in McDonald’s in Manhattan and might ought to be $8 or so. While they might could sell more in low cost of living areas if it was a $4 meal.
>> $5 meals might lose money in McDonald’s in Manhattan
Maybe in Manhattan they’ll be a few fries short of a value meal.
(Come to think of it, that describes the mental acuity of one who would choose to live in Manhattan!)
It might be a “loss leader.” An item a store sells at a loss, in order to get people to enter the store and hopefully buy other stuff as well. Or to get people into the habit of entering the store; or maintain their habit of entering the store.