Happens all the time. The large chain studio makes their money in selling \'print packages\' to the students. To get the exclusive to shoot on site, they offer the school a percentage ($$) of the packages ordered. The more \'exclusive\' the agreement (IOW, other photogs getting locked out of the publication), the higher the percentage the school receives. The studios call it a donation, but in reality it is a kickback. Since those types of portrait companies cater only to the non-profit sector, IE schools, churches, etc, they come away looking like good guys to the schools. But it erodes business from the local studios. In my area, many studios now have reduced hours, or closed up as that market has soured due to this
(BTW, those studios that shoot the pics also publishes the yearbook.)
This is not limited just to local photography studios however. In my town, a local independent book seller with over a 100 year history has shut down as the local tech school got a lower textbook bid from a large national chain, and the local bookseller lost 50% of their business because of it.
