Franchises keep the industry profitable
As sequels and remakes often have built-in audiences, they are safer and often return more profits. This keeps the film industry alive.
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Production of remakes, reboots and sequels helps the film industry return profits. This argument assumes that remakes, reboots and sequels come with built-in fans of the prior work which are interested in the new works in the franchises. They will more reliably turn out to see the new films in this franchise than a general audience will to see original films. We see this with films such as Avengers: Endgame, which broke the world box office record as part of a muti-dozen film series. The film industry is a risky business running on slim margins, so safe bets are necessary for a studio to survive. Safe bets such as franchise films can be used to both keep the studio running and fund more original, smaller films, so the distinction between franchise films and original films is not absolute.
Fan turnout for franchise films is far from guaranteed. Movies like Ghostbusters (2016) and Star Wars: The Rise of Skywalker have recently returned more disappointing box office numbers than the company anticipated.