From conversations I've had with higher-ups at Crossfit Headquarters, they're _terrified_ of a court finding them to have a franchise model, because that would open them up to all sorts of liability each time one of their affiliates does something dumb.
Per their legal interpretation, they become a franchisor if they do things like ensure quality or consistency.
I'm not a lawyer, so I can't comment on the soundness of their legal reasoning, but the negative effects for the clients are pretty obvious.