Adwords Landing page: no follow/index. So why are these guys doing it differently?

OK so this is my first post after reading information on the forum and internet.

I own a business LP Green Clean .com, a housekeeping service in los angeles.

While learning on how to start an ADWORDS campaign, I've been first checking out my competition and how they are doing things. Merrymaids.com is a huge franchise corporation that many have probablly heard of.

When i type into google : Site:merrymaids .com I get 14,000 results. I only have 24 pages.

There landing pages Merry Maids has made for EVERY city they do business and for every franchisee. What I don't understand is why are they all indexed if that is supposed to be bad? They have the same landing page for every single franchisee just the location is different and the the city name.

If i google "merry maids orlando" I get this PPC advertisment that when clicked local. merrymaids .com/Maids-in-orlando-fl?MarketingPartner=Google&campaign=NAF&ovchn=GGL& ovcpn=Geo+Branded&ovcrn=sr3_181927237_go+Orlando+m erry+maids&ovtac=PPC&SR=sr3_181927237_go&mm_campai gn=5c870df714b57404738698082e3b4150&Keyword=Orland o+merry+maids&gclid=CKr1srro2LECFRDDtgodeRkAVw]Professional Maids in Orlando from Merry Maids. Great service.

And in the organic search results I get:
local.merrymaids.com/Maids-in-orlando-fl
which has links to the same landing page they used for the above ad that I clicked.

So if the general rule is to NO INDEX/Follow in pages so that Google organic search doesn't index these pages. why are they doing it this way? I'd imagine their organic search results would have a penalty for "duplicate content" since each landing page is identical minus the city and address/phone number.
Thanks for helping me understand my competition's advertising!