Franchise systems work better with modern technology built for the people in the brand.
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As franchising moves into 2026, success will come down to getting the right balance between technology and the people behind the brand.
The franchising industry is entering a new stage of growth. In 2025, we saw momentum from the entire industry, from emerging brands taking their first steps to mature systems operating hundreds and even thousands of locations. And at the center of this evolution is technology.
Technology has been critical on how brands market, manage operations, and scale efficiently. As the industry looks ahead to 2026, the defining factor will not be who adopts the most advanced technology, but rather who intentionally uses technology to effectively support the people behind the brand.
The brands that rise to the top will be the ones that understand franchising is, and always has been, a people-driven business. Technology will continue to play a central role, with artificial intelligence (AI) woven into daily operations and supporting everything from marketing to scheduling. But its real value will come from how effectively these tools are integrated to create clarity, consistency, and confidence for franchisees.
Franchise Owner using the latest technology in his business to evaluate unit level performance.
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At the same time, franchising operates differently from a traditional corporate model. Franchisors set the vision and provide the framework, but franchisees are the ones executing on the model and have to manage the daily operations. The successful franchise systems use technology to strengthen these relationships and collaboration.
This balance between people and technology becomes even more important as brands continue to scale. There is no one-size-fits-all approach to technology in franchising, because no two franchise systems are the same. The tools each brand invest in should align with its model, goals, and stage of growth.
Technology can drive growth at the brand level while empowering franchisees to win in their local markets. Centralized tools like marketing automation and cloud-based training platforms provide the structure and support franchisees need to operate consistently and confidently.
The biggest impact comes from foundational technology. Some of which could be Customer Relationship Management (CRMs) that manage leads and customer retention, operations platforms that automate customer communications, Point-of-sale (POS) systems that streamline transactions and online orders, and field-service tools that support scheduling and invoicing. Data and predictive analytics help both franchisors and franchisees make smarter decisions, while AI, including large language models (LLMs), image and video tools, and automated workflows, can enhance marketing and decision-making.
With so many options available, the goal isn’t to adopt the newest tools, it’s to implement the right solutions in the right way for the business.
Franchisors must also look closely at their own teams. As their systems grow, the people behind the scenes matter just as much as the brand itself. Do you have the right people in the right roles? Technology can amplify strong teams, but it can also expose gaps when leadership or support structures aren’t fully developed.
Team collaboration works better In franchising when using the latest technology.
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Private equity’s continued interest in franchising only heightens the importance of these principles. In 2025, we saw significant investment activity across emerging and established brands, and that momentum will continue and grow in 2026. But private equity is not investing in concepts alone. Investors are backing leadership teams, scalable infrastructure, and systems built for long-term growth. Technology matters, but people matter more.
For emerging founders, this moment brings both opportunity and responsibility. Franchising allows brands with a strong operational foundation to use technology to compete with larger, more established players. The right tools can accelerate growth, but only when they support clear systems, shared expectations, and strong communication.
Looking ahead, 2026 will be shaped by two forces: the continued rise of AI and the continued strength of entrepreneurship. AI will keep driving efficiency, transparency, and smarter decision making. The brands that win will be the ones that use technology to support the humans who power their systems, making it possible for them to do more with less.
Ultimately, the future of franchising will be human led and technology enabled. The brands that embrace both will define the next era of industry growth.
