UK Franchising Embraces AI, But Results Are Still Emerging

Artificial intelligence is quickly becoming part of everyday conversation across the UK franchise sector, but new research from the British Franchise Association suggests that the practical results are still developing.

In March 2026, the BFA surveyed its members on how they are using AI in their businesses. Of the 53 respondents, 83% said they are using AI to some degree, while only 2% said they would not be using it at all. This indicates that AI is no longer a future consideration for franchising, it is already entering the way brands, franchisees, suppliers and advisors operate.

However, the findings also show that the sector is still in the early stages of understanding its true value. While 58% reported positive outcomes, including better customer service, increased profits or improved recruitment, 42% said they had not yet seen a clear difference.

Adoption Is Growing, But Maturity Varies

The research highlights a clear distinction between early adoption and meaningful integration.

According to the BFA, 40% of respondents said they are fully embracing AI across multiple areas of their business, while 43% said they are positive about AI but have not yet used it beyond tools such as ChatGPT. A further 15% described themselves as cautious and unlikely to do anything significant with AI in 2026.

This suggests that enthusiasm is high, but many franchise networks are still exploring how AI can be used effectively and responsibly.

For franchisors, the opportunity may lie in applying AI across network-wide systems, such as:

For franchisees, AI adoption may initially be more task-focused, supporting areas such as content creation, administration, customer communication and local marketing.

Franchisors Are Seeing Results First

One of the most interesting findings is the gap between franchisors and franchisees.

The BFA reported that 61% of franchisors said they were fully embracing AI, compared with 23% of franchisees. However, 55% of franchisees said they were very positive about AI, suggesting the gap could narrow as tools become more accessible and practical use cases become clearer.

Franchisors were also more likely to report positive outcomes, with 83% seeing benefits through increased profits, better recruitment or improved customer service. By contrast, 67% of franchisees said they had not yet seen a discernible difference.

This may reflect the scale at which AI is being applied. Franchisors can often use technology across an entire network, while individual franchisees may be using it in smaller, more limited ways.

The Strategic Opportunity

The key takeaway is that AI is not simply a technology trend for franchising. It is becoming a strategic question.

The franchise model is built on consistency, systems and replication. Any new technology must therefore strengthen the network, rather than create inconsistency between locations.

Used well, AI has the potential to support:

But successful adoption will require training, governance and a clear understanding of where AI genuinely adds value.

Market Implications

The BFA’s findings suggest that franchising is entering a new phase of digital development.

The question is no longer whether franchise networks will use AI, but how they will use it effectively.

For franchisors, the opportunity is to build AI into scalable systems that support the whole network. For franchisees, the opportunity is to use AI to improve productivity and local performance without losing the personal service and entrepreneurial energy that make franchising successful.

AI may not yet be delivering measurable results for everyone, but its role in the sector is only set to grow.

Franchising in 2026 is becoming more digital, more data-led and more focused on how technology can support long-term network performance.