That's what people said before the awful Bayformers came on the scene in 2007 (with a 57% rotten score). Even with three sequels worse than the first, that franchise is a moneymaker for Paramount.
Lionsgate has made sequels to movies with modest profit margins, i.e. Divergent had a net profit of $71M once DVD, pay-TV and other things factored in. They would like for PR to overperform, like significantly higher than $50M on opening weekend, but that won't happen.
And Saban has other options for the franchise. He's pretty friendly with Jim Gianopoulos, former head of 20th Century Fox, and he might take the franchise to Paramount Pictures (their parent company Viacom also owns Nick) should LGF's film underperform. But I don't see him taking a film franchise to Netflix.