AFDR
The obstacles to broader and more effective use of AI include a lack of skilled personnel, high implementation costs, and data concerns.“ I think every organization is really trying to figure out how to make it work,” said Courtney, adding that leaders need to be convinced that AI can be used both securely and efficiently.
For now, the technology’ s bottom-line impact remains an open question. A decisive 68 % of brands say it’ s“ too soon to tell” if AI is driving more deals. Yet, franchisors are realizing the benefits of an AI-powered platform on the overall recruiting experience. Among them:
• 28 % reported improved candidate satisfaction.
• 40 % cited enhanced personalization in the sales process.
• 58 % credited the integration of AI with a streamlined sales process.
• 35 % noted increased candidate engagement.
• 23 % found greater efficiency in resolving questions and issues raised by candidates.
Clearly, this is a time of substantial technological changes with new possibilities and challenges. Phibbs framed this year’ s data as a crucial baseline as AI evolves over the coming years.“ We’ ll continue to build on this,” Phibbs said,“[ and ] to learn more about what franchisors are doing with these programs.” •
Brands Using AI
52 % YES
48 % NO
AI Challenges
13 %
7 %
26 %
26 %
15 %
22 %
33 %
0 5 10 15 20 25 30 35
Other Resistance from Team Members Tech Maturity / Reliability Data Privacy / Security Concerns Integration Difficulties Lack of Skilled Personnel High Implementation Costs
AI Usage / Benefits
3 %
29 %
68 %
44 %
9 %
44 %
59 %
0 10 20 30 40 50 60 70 AI Hasn’ t Made a Difference AI Has Helped Deals Say It’ s Too Soon to Tell Market Analysis Candidate Screening AI Chatbots Email Personalization
6 %
Confidence in AI
Not At All Confident Somewhat Confident Very Confident
28 %
56 %
0 10 20 30 40 50 60
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The 2026 AFDR pulls back the curtain once again, uncovering the latest trends and best practices in lead generation and recruitment. Built from an in-depth survey of franchisors and expert analysis, the report digs into spending, budgets, and business outlook to deliver a clear snapshot of how leading brands are investing, adapting, and planning for what’ s next. This year’ s edition also features a new section on the emerging and transformative role of AI and machine learning in franchise development.
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42 | Franchise Update | Issue 4, 2025