Whether it's a franchise or not isn't really the issue.

It's that something like a coffee shop can do a ton of business in a high traffic area, and so can pay a higher rent than a local bookstore. So if you only have enough rental units for one of them, the coffee shop is going to bid higher. Which means if you want to have both, you need enough units to exist for both.

Also, you're not actually trying to lose the coffee shop. You want to have both.