1. Reason to keep the franchise even if only selling a few new ones, Program Cars. With resale that falls off a cliff, luxury cars are a great market for the year old executive/rental cars. Manufacturers limit these cars to only dealers with that franchise (I believe its 15 months old before available to other GM dealers without the franchise, but don't quote me on that.) It's a much larger market and I think you'll find most dealers want the program Cadys more than the new ones.
2. As to taking the franchise away, GM should have to buy it, dealer had to buy it, GM should be no different, and I think it most states without shuttering the brand or filling bankruptcy again they will have to. If they don't pay an amount the dealer feels is worth selling, the dealer should be able to keep it. No different than going around and finding the vinyl top gaudy late model Cadys and telling the owner they're taking it back and paying 1/2 what its worth. Not going to fly that way and franchise should be no different.
3. Sad part is I'm afraid Ford and GM are falling back into they're old habbits again and are going to start going back down the tubes. They're back to chasing the dealerships (Ford is also into new program, Similar to Blue Oval Certified that ruined dealer relations in the past). They need to be worrying about the product instead. If they'd get the product line right, the dealers would be profitable and buyouts would occur. Caddy needs SUV/Crossovers, that's the market and they're missing it, they came out with some much improved cars in a time when cars don't sell and are worrying about dealers. It's like having your left arm cutoff and spending time to bandage a scratch on your right arm, but this is the way GM (and Ford and Chrysler) have been in the past and I'm afraid as profits return, have fallen back into, I guess its easier to try to find someone else to blame than fix their problems. As I've always said, "Its the product, Stupid", because if they get that right everything else will fall into place.