UK franchising embraces AI — but the real results are just beginning
What happened
In March 2026 the BFA (British Franchise Association) polled its members to find out if they were using AI in their businesses, and if so, what difference it had made?
Who are the BFA
The BFA are the UK’s self-regulatory body for franchising. They were formed in 1977, and members pledge to abide by their Code for Ethical Franchising.
Who answered the questions
The BFA membership is made up of franchisors, franchisees, advisors and suppliers.
What were the questions asked
Members were asked: “Have you introduced AI into your business over and above ChatGPT?” Of the 53 responses received the responses were:
- 43% Yes, we are very pro AI but haven’t actually used it yet above ChatGPT etc
- 40% Yes, we are fully embracing AI and are using it across multiple areas of our business
- 15% We’re very cautious and it’s unlikely we’ll do anything in 2026
- 2% No, I’m not a fan and we won’t be using it at all
It is worth noting that 83% of members are using it in to some degree and only 2% said they would not be using it at all.
For those who replied yes, they were then asked a follow up question: “What difference has it made to your business?” Their responses were:
- 42% said there had been no discernible difference yet
- 33% said it allowed them to offer better customer service
- 14% said they had seen an increase in profits
- 11% said they had seen an increase in recruitment
Although 42% said they had not seen any discernible difference, a combined 58% reported seeing positive results.
How did the different groups answer
When broken down into franchisor, franchisee, supplier and advisor, the results told an interesting story, although the number of advisors and suppliers who replied was minimal.
Who is embracing AI the most
When it came to the adoption of AI, 61% of franchisors, said they were ‘fully embracing it’, vs only 23% of franchisees; however, 55% of franchisees said they are ‘very pro’, meaning the gap won’t take long to close.
Who are seeing the most positive results
Franchisors were the group to report the most positive results (83%) through a mixture of increased profits, increased recruitment and better customer services.
Meanwhile only 33% of franchisees saw either better customer service or increased recruitment; the majority, 67%, have seen no discernible difference yet. This could possibly be because franchisees are using AI for smaller tasks whilst the franchisor is likely to be using it for whole network, with bigger results.
Who is cautious
Adam Daniel who owns a Creation Station franchise in Dereham, Thetford, Attleborough and Wymondham who took part in the survey, explains why he is cautious in its use: “AI has a place in the business sector but I am cautious to rely on it completely as it can take away the creativity which my business is promoting, I also worry about the environmental and sustainability impact given how much AI data banks draw from natural resources to enable users to access its tools.”
Who is saving money
However franchisor Phil MacKechnie, director of franchise development at domiciliary home care brand Radfield Home Care gives a startling example of how AI is saving him thousands of pounds a month and helping him deliver a better franchise experience to his network: “Two years ago, we made a deliberate decision to take AI seriously – not as a trend to experiment with, but as a genuine operational lever. We’ve built structured prompts aligned to our brand standards, deployed call transcription across strategy and finance meetings, and developed internal tools that give our franchise partners access to operational guidance around the clock. Most tangibly, we replaced a legacy franchise management platform costing £1,500 per month by building our own in-house solution for £100 in token costs. The ROI case is no longer theoretical for us.”
Supplier success
100% of suppliers said they were ‘fully embracing’ the use of AI and as a result, delivering better customer service. Sarah Aires, owner of Headshots With Sarah said: “AI has become a genuine working partner in our business. We have been upgrading our tech infrastructure and have been using Replit to code entirely new platforms that link everything together, from client experience to delivery. I use AI daily to develop content strategy, refine some client communications, and think through positioning. AI has moved from a nice idea to something that’s shaping how the whole business operates.”
Pip Wilkins, CEO of the BFA, who recently hosted a one day seminar on the use of AI in the franchising sector said: “This data is very interesting and reflects the sentiment in the room at the seminar. Most people are very pro but cautious about how to use it to their best advantage so our role is to continue to educate our members on the opportunities for AI’s use, and the significant legal ramifications all businesses need to be aware of when using it. Plans are already underway for an AI Unlocked Part 2 event in a couple of months time.”