What Franchise - Issue 21.2

“2026WILL BE A STRONGER YEAR FOR FRANCHISING” Ryan Armitage, Director, Tezlom “Despite macro-economic factors, 2026 will be another year of growth and success for franchising” Charlie Dickson, UK & International Franchise Development Consultant, Ashtons Franchise Consulting 2025 has unquestionably been a challenging year. Franchising has not been immune to macro factors such as the economy, inflationary pressures, increases in NI and labour supply. Notwithstanding these challenges, the franchise sector has experienced impressive growth this year. Whilst these macro pressures seem unlikely to change, what is clearly evident is the appetite, positivity, and opportunities that franchising continues to offer. The sector is diverse, flexible, and unique. The huge breadth and depth of businesses that franchise is testimony to this. Progressive, ambitious businesses looking at growth opportunities turn to franchising as a means to achieve their goals. 2025 has also been the year when AI came to the forefront. Aspiring brands are embracing AI to drive efficiencies, improve customer engagement and service, deliver effective marketing strategies and more. They are also using AI to support franchisee recruitment and development. The franchise sector is in an exciting place to take advantage of its uniqueness as a dynamic, sustainable business model that can be applied to almost any industry. Add the fast-developing AI factor deployed by innovative franchisors to support their franchise networks and franchising offers a distinctive recipe for success. “The franchising industry continues to grow because people in this industry don’t want for perfect conditions. They adjust, learn and keep going” With the new budget landing and the upcoming employment law changes becoming clearer, franchisors and franchisees will be able to plan with more confidence. The industry already feels like it’s gearing up for a year of adjustment, clarity and forward movement. AI is going to be the biggest influence on how networks operate. At the BFA conference it was the main talking point, and everyone I spoke to was somewhere on that journey. Some brands are already integrating it, others are experimenting, but there’s a shared sense that AI is becoming a practical tool rather than a distant idea. In 2026, I think we’ll see more franchisors using it to tighten processes, support franchisees better, and free up time across their networks. Alongside that, resilience remains the trait that holds business owners together. The employment rights changes, cost pressures and shifting expectations in the workforce will all create challenges, but franchising has always adapted quickly. The owners who stay flexible, open-minded and willing to evolve their operations will be the ones who move ahead next year. Franchising continues to grow because people in this industry don’t wait for perfect conditions. They adjust, learn and keep going. And 2026 will show that again, with networks and franchisees ready to push forward despite the changes around them. 50 WHAT FRANCHISE Issue 21.2