What Franchise - Issue 21.2

“FRANCHISINGWILL CONTINUE TO OUTPACE OVERALL ECONOMIC GROWTH” Matthew Haller, President and CEO, International Franchise Association “2026WILL BE AN EXCITING TIME FOR FRANCHISE BRANDS TO EMBRACE AI” Pip Wilkins, CEO, British Franchise Association (BFA) “Emotional connection will become more important than ever before” Stacey Cann, Franchise Strategist, MD of Daisy First Aid and host of the Disruptive Franchise Awards & Podcast My prediction for 2026 is that franchisors will need to move away from selling features and benefits and instead become experts in creating emotional connection for their franchise recruitment marketing. Selling on flexible working is no longer enough and in a growing trust recession and infiltration of AI, franchisors will need to build personal authority by stepping out from behind their brand in order to attract the right people and make it feel safe to invest in them. I believe that franchisors that shy away from this will be left struggling to convert leads, regardless of what systems and AI they chose to integrate. Despite the headwinds facing all brands and franchisees in the current consumer and interest rate environment, many brands are focused on reengineering their value within the franchise relationship to ensure profitability remains the focus at a unit level. This will pay dividends for the long- term.With the new tax law kicking into effect in the U.S. in 2026, tariff-related concerns stabilising, and the Federal Reserve continuing to ease interest rates, franchising will remain strong in America. When coupled with the continued AI-driven downturn in overall employment and significant numbers of corporate refugees looking at franchising, franchise development will be in for an even more robust year in 2026. The IFA is working to put an end to the era of joint employer uncertainty by pushing for the American Franchise Act to become law, setting the stage for brands to invest even more into their franchise relationships without the fear of joint employer concerns. We will continue to see brands integrating AI, helping them to deliver a better, faster service, while resolutely remaining a ‘people first’ industry. Many of the most innovative advances are coming from our domiciliary home care sector. Kate Dilworth, Associate Director of Network Development at Right At Home, the current EFF Franchisor of theYear, said: “In 2024/25 we built our own intuitive, end-to-end operating software, allowing us to integrate with AI- driven remote monitoring. “This has opened the door to some really exciting partnerships that will enhance our clients’ independence and safety at home. “At the moment we’re piloting a piece of discreet wearable technology that monitors someone’s movement and ensures they are getting assistance at the times when they need it; we’ve also trialled a voice-activated AI device that acts as a 24/7 point of contact. “We’re currently adopting AI driven efficiencies into care planning as well, allowing our care teams to spend more time focusing on their clients and less on admin. “We’re even supporting research into the possible use of robotic technology, whilst recognising and protecting the rights of our care assistants, who will always be our most precious resource.” Whether on a large or small scale, 2026 will be an exciting time for franchise brands to embrace AI technology, ensuring they stay ahead of their competition and deliver a best-in-class product or service to their clients. 54 WHAT FRANCHISE Issue 21.2