Artificial intelligence (AI) has taken the world by storm lately, and many potential franchisees are wondering how it can fit into their future franchises.
With the swirl of possibilities and legal or ethical hurdles, the future isn’t as cut and dry as some might think. However, there is tremendous promise on the horizon for AI to help franchisees streamline business operations, make better decisions, and improve the customer experience.
With so much at play, it makes sense to examine the Canadian regulations around AI for franchises and how AI is being used right now.
How Can Canadian Franchises Infuse Artificial Intelligence?
Before examining national laws about AI and franchising, it’s important to start by examining the franchisor’s regulations around using AI in the organization. Often, franchisors have done the legwork for you and have researched how they want AI used in the organization. Even if a platform or practice is legally allowed, the franchisor might not approve it.
Provincial franchise legislation states that both the franchisor and franchisee have a statutory duty of good faith to improve the performance and enhancement of the franchise agreement. This includes infusing AI into the franchise’s systems and operations. The courts often leave this decision up to the franchisor, who has the resources to investigate the legality behind AI inside the franchise. That means franchisees should always consult with the franchisor before adopting new AI tools.
Canadian franchises have started adopting these AI tools in several ways. Here are four of the most common ways you can expect using AI to improve your franchise operations when you invest in a franchise soon.
Automating the Mundane
Franchisees are busy, and one of the franchisor’s goals is to offer tools that will help simplify the day-to-day operations for their investors. One way this is done is by using AI to automate more tasks within the franchise. Repetitive tasks, such as inventory management, scheduling and HR, and financial reports, are now being handed over to AI rather than taking up space on the franchisee’s desk.
Smoother Supply Chain Management
Franchisees need supplies to perform their jobs at optimum efficiency. Now, more franchisors are using AI to spot patterns in supply usage, predict future demand, and forecast trends that could change the supplies needed. This predictive approach via AI means more franchisees have what they need when needed, reducing downtime and costly shortages.
Hottest Business Services Franchises
chargeFUZE
ChargeFUZE is the #1 largest network of portable charging stations and looking to expand its network by partnering with entrepreneurs who want to generate immediate revenue.
Summit Property Group
We provide integrated maintenance services to full facilities management programs across large, geographically dispersed customer portfolios, We are a leading residential and commercial real estate management in Canada.
Simpler Customer Support
Customer experience is a top priority in any business, so franchisors are now looking into using AI to instantly answer customer questions without requiring the franchisee to be on 24/7. By tapping into chatbots and virtual assistant to help with frequently asked questions, appointment bookings, and more, franchisees can save time and still serve their customers.
Personalized Marketing
While the franchisor often takes care of the bulk of marketing creative, franchisees want to have more personalized collateral to use in their stores and communities. AI makes creating more targeted promotions faster and easier, making the franchise feel more local while supporting its national reputation.
Personalized marketing efforts via AI can also include predicting future trends in hyperlocal areas, allowing franchisees to constantly tap into what’s happening in their community and capitalize on opportunities.
AI might sound a little scary on the surface. Still, when put into practice ethically and legally, it can lead to enormous potential and opportunity for franchisors and franchisees.
~~
Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.