The problems people have with franchising have nothing to do with the level of tier 1 competition. Franchising brings stability which is great for orgs/players and particularly investors who are involved. The problems tend to arise with the tier two+ scenes. Stability is inherently resistant to change, even good change, so it can stifle prospective pro playerbase growth and talent development if not implemented properly (ahem overwatch). If teams/orgs/players don't see a viable path towards either inclusion in the league or inclusion in the big tournaments, it can kill the scene.
I think the Valorant franchising is promising since Riot have a relatively good track record with LOL. The promise of a continuously expanding league system each year is a great development. The challengers leagues (VCLs) I'm a big more skeptical on. Opportunities to get into the VCLs are so limited (once per year in some cases) that a big portion of the amateur scene could be dissuaded from participating if they see nothing to play for over many months. It remains to be seen whether Valorant stagnates a bit here (it is big enough to persist for a while anyways, and hopefully league play keeps it popular enough to prevent the stagnation).
Thank you for listening to my ted talk :'D. I didn't mean to write so much.