Yes , they sell one franchise licence per 60,000 population, and the areas are based on local authority boroughs, so if for example , in Bristol there are 250.000 people, they would sell 4 licences, thier argument is that there are then 4 people building the brand in that city, meaning that there is a bigger cake for each of them to have a quarter of.
Does it work better than each having an exclusive area? You would need to be a professor on micro and macro economics to come up with a reliable answer to that. As I see it , it works for some , but not for others.