Franchise New Zealand Autumn 2025 Year 34 Issue 01
s franchise systems throughout the country seek to optimise
operations, enhance customer experiences, and drive growth, AI
technologies are increasingly becoming integral to business strategies.
From embryonic, homegrown franchise networks to multi-national
giants with a Kiwi presence, the adoption of AI is altering the franchising
landscape across Aotearoa.
New Zealand’s unique business environment — with its market size,
geographical isolation, and innovative spirit — presents distinctive
opportunities and challenges for AI implementation in franchising.
Here, we look at how franchises are leveraging AI technologies, the
hurdles they face in adoption, and what success stories are emerging
that highlight the potential of these tools to streamline and supercharge
franchise operations.
At the 2025 International Franchise Association (IFA) Convention in
the USA, held in Las Vegas in February, AI in franchising was a major
focus. Numerous sessions were dedicated to discussing how artificial
intelligence can be used to optimise franchise environments, improve
customer engagement, and provide a competitive edge across
marketing, training, and operational efficiency, making it a key topic of
conversation among franchisors and franchisees alike.
A critical tool
A central theme of the IFA Convention, AI is now considered a critical tool
for modern franchising, not just a trend, with many sessions highlighting
its potential to transform the industry. Topics covered included:
• AI-powered chatbots for customer service
• Predictive analytics for sales forecasting
• Automated marketing campaigns
• AI-driven training platforms for franchisees
• Data analysis for operational optimisation
At the IFA Convention, presenters from major franchise brands and AI
technology companies focused on case studies and best practice examples
of how they are integrating AI into their operations, with a key takeaway
being that AI can be leveraged to enhance customer interactions and
provide a more personalised customer experience. The consensus was
that franchisors who effectively utilise AI are set to gain a significant
competitive advantage over those who don’t.
Greg Paget, former franchisor, board member of the Franchise Association
of New Zealand (FANZ) and now a franchising and small business mentor,
was among the Kiwi contingent at this year’s IFA Convention. “I attended
a number of very informative sessions at IFA on AI,” he says. “All of them,
without exception, were very good, and I can see that this is something
that businesses need to embrace or be left behind.
“The interesting thing compared to previous presentations on this
topic, was that the sessions I attended were about far greater practical
applications. In the past I’ve heard a lot of experts telling us about how
great AI is going to be, but I’ve always found myself leaving a presentation
none-the-wiser as far as application is concerned. This year it feels
really different.
“There are now a raft of AI tools out there, which I’m starting to play around
with. For anybody to become engaged, they simply need to make the leap.”
AI in New Zealand franchising
The franchising sector represents a significant component of New
Zealand’s economy, with sales turnover for the entire franchising sector
estimated at $73.4 billion according to the 2024 Franchising New
Zealand survey conducted by Massey University Business School, and an
estimated 114,300 Kiwis employed in business format franchise systems.
As digital transformation accelerates globally, New Zealand franchises
have begun exploring AI solutions to maintain competitiveness and
improve efficiency.
Artificial Intelligence (AI) has emerged as a transformative force across the
globe, with innumerable existing and potential applications, but how has
New Zealand’s franchising sector embraced this evolving technology?
FUTURE THINKING:
AI IN NEW ZEALAND
FRANCHISING