I think Kathleen isn't interested in the kind of candidates she'd get if the possibility of her breaking the deal was common knowledge.
But what exactly would be breaking the deal, here? There're clear conditions to win the prize, and they don't include "
one of the contestants is guaranteed to get the prize even if there's no actual winner after 4 showings" I also don't think Kat would be heartbroken to have even more desperate people to apply for the contest. If anything, that'd maybe make it even more fun for her.
Put the payout in doubt, and all she'd get would be complete washouts.
For any individual participant their payout is
already in doubt, because it hinges on their ability to beat the competition. It really makes no difference to them whether the other two competitors
also failed to secure the win.
Consider roulette, or powerball or a number of other jackpot games, where someone winning a prize is also not guaranteed. Doesn't really stop people from spending money for their chance at it.
Of course, it is possible that in case of a tie there will be a tie-breaker. It's just something we don't really know, and simply presumed. But after that second week which can potentially end with no winner, that's quite an eye opener it doesn't have to be the case. That's why i asked. And why MC and/or the Carnations might be inclined to inquire about it too, in such scenario.