Nothing to do with Polaris as much as the individual dealership. In the US, 80% new business fail in the first 5 years.
Indian is a very small company and produces only a small number of bikes compared to others, thus the small dealer network.
Stand Alone Indian dealerships that rely only on Indian sales will fail.
To be a successful dealership, you either are a multi-brand powersports dealer or you have a large used motorcycle sales program. My local dealership has over 200 used motorcycles in inventory of all makes and models. They sell really well. Also, you have to walk through the Indian showroom to get to them. Meaning many customers never make it to the back to see the used bikes, instead they buy new Indians.
Also, many Dealerships are run on shoestring budgets and are self-insured, meaning any disaster and they are done.