What Franchise - Issue 21.2

“GOOD FAITHWILL BECOME AMUST-HAVE IN FRANCHISE CONTRACTS” Oliver Hall, Solicitor, Weightmans LLP “THE RISE OF ‘POSITIVE- EXPERIENCE-FIRST’ FRANCHISING” Sarah Cressall OBE, Founder and CEO, The Creation Station 2026: THE YEAR OF THE FOUNDER’S BRAND Amrit Dhaliwal, Founder and CEO, Walfinch 2025 marked a year of case law improving the bargain for franchisees. The evolution of good faith, following the decisions of Dwyer and Ellis, may disrupt some franchise networks, but this will be for the better.With more cases due on this issue in 2026, this story has not yet finished. Franchisors are increasingly recognising that it is no longer good enough to simply have a “water tight” agreement. Courts are increasingly scrutinising the fairness of franchise agreements which, depending on the circumstances, can be construed as closer to an employment relationship than a commercial one. Further, they are increasingly critical of poor franchisor behaviour. In 2026, we expect franchisors to respond by using the “carrot” rather than the “stick”: agreements drafted with balance in mind, contractual powers used with restraint. Franchisees, meanwhile, enter 2026 in a better bargaining position. The momentum of case lawwill embolden franchisees, who are grouping together to be heard, and who are legally savvy.We expect more collective negotiation and a push for accountability. The networks that thrive in 2026 will be those that embrace this evolution rather than resist it. Good faith is no longer a soft concept – it’s a must-have. Supported franchisees perform better and stay longer. As communities continue to recover from years of digital overwhelm, people are deliberately seeking ways to support children’s development, enhance their own wellbeing and reduce loneliness in the elderly. Edutainment centres and creative learning spaces will increase in number, offering alternative education experiences that spark joy, belonging, curiosity and human connection. Purpose-led creative experiences, that deliver emotional uplift and meaningful social interaction will increasingly outperform traditional transactional models. This won’t be a passing trend. Consumers are hungry for meaning. They’re choosing brands that contribute positively to their lives. Franchising, with its ability to scale local impact at pace, is uniquely positioned to lead this shift. The most successful brands will recognise that people don’t just want a product or service – they want to feel better, feel seen and feel connected. Experience-first franchising will be where positive impact, purpose and profitability meet as business for good. I believe we’ll see the rise of founder-led franchising, where the individual behind the business becomes just as important as the business itself. Why? Because prospective franchisees aren’t just looking for proven systems any more. They’re looking for mentorship, leadership, and a sense of alignment with the person behind the brand; to be drawn into the mission on a personal level. Entrepreneurs don’t just want the keys to the house; they want to knowwho’s built it. To get ahead of the curve, founders and business leaders need to step out from behind the logo. It means storytelling, showing up on video, and sharing the real journey, not just the polished pitch. Franchise decisions will be influenced as much by mission and authenticity as they are by profit and performance. In an AI world, the human element is becoming the differentiator. Franchisors who embrace this shift will create stronger networks, deeper loyalty, and better cultural fit. “Franchises who are ready to embrace change will thrive” Farrah Rose, Director & Head of International Franchising, The Franchishing Centre In 2026 we’re going to see British franchises doing what they’ve always done best: innovating, adapting, and leveraging the flexibility that has always set franchising apart as a growth model. I expect British franchises to lead the way in embracing new technology, not just adopting newAI systems, but also in demonstrating which systems offer genuine value. This will be especially important for F&B and hospitality brands who are already feeling the strain of increased staffing costs. These same tools will also enable franchisors to better support their existing networks while running more cost-effective recruitment campaigns. We will also see a lot more franchises looking overseas for growth opportunities in 2026. There’s been a significant increase in interest from international investors who recognise not only the quality of British brands, but the well- structured and innovative business models behind them. 2025 was very strong in terms of British brands recruiting newMaster Franchisees overseas, and technology played a very big role in identifying and pre- qualifying candidates. Emerging markets will play an increasingly important role as SMEs and investors become more educated about franchising’s benefits. Technology will also make it easier for franchises to research newmarkets, and to set up the necessary infrastructure, levelling the playing field across multiple borders. Franchises who are ready to embrace change will thrive in the coming year. 53 WHAT-FRANCHISE.COM Interv iew | FEATURE