AI and Franchising

The achievement center
Mobile Senior Shop
AI and Franchising

F. Georges Sayegh, A.S.D, C.ADM, FCMC of Quebec and Ontario, is a consultant in franchise and technology transfer and author of 18 books on franchising and associated businesses. To reach him: gsayegh@gsayegh.com; Tel.: (514) 216-8458.

When we think of AI, the first thing that often comes to mind is robotics (e.g., NASA, armaments, manufacturing). However, its impact extends far beyond these applications. Robotics is just one visible facet of AI. In reality, AI is transforming industries and daily life in ways we may not even realize—from natural language processing tools like ChatGPT to personalized learning in education, advancements in 3D printing, agricultural automation, cleaning large retail stores, performing remote surgeries, and even contributing to creative fields such as art and music. Over the past century, AI has been recognized as one of the fastest-growing technologies, advancing at a pace unmatched by any other industry.

It is fascinating how AI integrates into so many areas. Is there a particular industry or application that stands out as especially impactful? The AI education market alone is valued at more than $1.5 billion USD and is forecast to grow to over $6 billion by 2032.

AI in Franchising

In the franchising sector, however, the adoption of AI is moving at a snail’s pace—even slower than a slug. Franchisors should be asking themselves:

  • Where do we stand in relation to this new technology?

  • Are we equipping our franchisees with the tools and training they need to stay ahead of the competition?

Transforming Business with AI

To truly embrace AI, every franchisor must develop an AI-powered franchise system, including its structure, documentation, registration processes, and organizational readiness for new technologies. Franchisors must manage and oversee the rollout of AI within their networks, covering areas such as IT strategies, strategic planning, human resources, and training oversight.

Programs developed for franchisees and their staff should include:

  • Teaching strategies informed by thousands of hours of research and in-class experience.

  • World-class robotics education programs for hundreds of franchisees.

  • After-school and summer camp initiatives designed to benefit franchisees, their staff, and the communities they serve.

  • Inclusive programs that appeal to individuals of all levels of academic achievement.

  • Engaging AI training programs that are fun, educational, and cross-curricular, helping participants develop real-world AI skills applicable to their future education and careers.

Benefits for Franchisees and Their Staff

By participating in hands-on AI training, franchisees and their staff can actively embrace AI to enhance operations, improve customer experiences, and gain a competitive edge. This preparation will enable franchisees to:

  • Enhance franchise operations by streamlining processes, improving customer service through data analysis, optimizing marketing strategies, and providing better training.

  • Leverage AI for market research, customer insights, and automation, providing a competitive advantage.

  • Maximize AI benefits by carefully planning its integration, tailoring solutions to meet the specific needs of the franchise system, and ensuring proper training.

  • Monitor operations across the franchise network, ensuring compliance among suppliers, vendors, and franchisees. This oversight safeguards brand integrity and maximizes revenue opportunities.

  • Proactively manage risks by identifying legal and operational issues before they escalate, even across thousands of locations.

  • Streamline operations and centralize reporting to enable franchisors to focus on key differentiators like brand identity, relationships, and intellectual property.

A Strategic Advantage

In conclusion, franchisors who are early adopters of AI will gain a significant strategic advantage by unlocking the value hidden in their unstructured data. By refocusing efforts on growth-driven activities, they will be well-positioned to lead the next era of franchising.