Apparently there's a legal issue regarding the relationship between Apple, AT&T/Cingular and the corporately-owned (versus the franchised) stores.
Apple is not allowing any discounts on iPhone because of anti-competitive laws. Because the franchised stores didn't want to guarantee that they won't discount, Apple is blocking them from selling iPhone.
This particular authorized franchisee will have a kiosk set up to direct people to the AT&T Web site if interested. They will also be offering steep discounts on phones like the new RAZR, giving people a more cost-effective option and capitalizing on the extra foot traffic that iPhone is expected to generate.
If you're in the market for an iPhone and aren't near an Apple store or AT&T/Cingular corporate store, you're only option is to order online.
I've also been told that sales reps have been threatened with termination if they're found holding iPhones for "potential" customers. If there's a paying customer standing there, the phone must be made available
I'm also hearing that each AT&T/Cingular corporate store is receiving 300 iPhones.