AI Adoption in Franchise Operations: Where to Start

Franchisors can test an AI tool at corporate, but getting franchisees to use it across the network is a different challenge. A tool that works well at corporate can stall once it reaches independently owned locations with different staffing, workflows and priorities. That leaves franchisors with a practical question: where can they start without creating another system franchisees have to learn?

Matthew Haller, president and CEO of the International Franchise Association, told L'Express Franchise that AI is one of three factors driving franchising's pivot back to growth in 2026, alongside tax certainty and falling interest rates. "People tend to think about AI as a replacement for the workforce," Haller said. "That's not what we're seeing in franchising. We're seeing it as a way to do more."

Haller pointed to marketing, content and franchise development as areas where AI is already being used. Those functions could give franchisors a place to start before bringing AI into core unit-level operations.

Sara Reece, co-founder and CEO of Workmind, builds automation and AI tools for franchise networks and has watched rollouts succeed or stall. In an interview with CXO Dispatch, she said the technology is rarely the reason AI adoption fails. "Every AI initiative is an operational technology initiative," Reece said, pointing to operational readiness, user adoption, governance and change management as the real deciding factors. Reece said AI works best when it is added to a process that is already documented and standardized.

For franchisees considering a new tool, financial impact is likely one of the first questions. Reece said that concern should influence how franchisors introduce AI across the network and that corporate mandates tend to meet resistance. Reece said pilots are more likely to gain traction when franchisees can see the results in their own numbers. Those early adopters can then help demonstrate the value to other franchisees.

Reece said a successful pilot still needs a plan for rolling it out across the network. Reece said governance becomes more important once a system moves beyond the pilot stage, when franchisees need clear guidance on rollout and support. Without it, franchisees are left guessing who to call when something breaks.

• Get the workflow in order before adding an AI tool. If the process is inconsistent, technology will not fix it.

• Marketing, content and franchise development can be good places to test AI before introducing it into core unit-level operations.

• For the first rollout, work with a small group of franchisees that are willing to test the technology. Track what changes in their numbers, use those results to show the value, and put a clear support process in place before expanding to the rest of the system.