How AI in Franchising Is Changing the Customer Journey Forever

In a recent installment of the Wednesday WISE webinar series—hosted by the International Franchise Association and sponsored by Vendasta—industry leaders explored one of today’s most critical innovation frontiers: AI in franchising. 

The session brought together expert voices from two major players in the space: Chris Deianni, Head of Business Development at Vendasta, and Luke Stanton, Senior Vice President of Franchise Support Services at Neighborly.

Their discussion unpacked how artificial intelligence is no longer a future consideration for franchise brands—it is a present-day imperative. From streamlining operations to personalizing customer engagement, AI is revolutionizing the way franchises operate across all levels of the organization.

The conversation zeroed in on how AI is driving intelligent marketing automation for franchises, simplifying lead management, and reshaping the franchise tech stack by consolidating fragmented systems into unified, AI-powered customer engagement platforms. 

In the sections that follow, we break down the most impactful takeaways from the webinar and provide actionable insights for franchises ready to move from experimentation to full AI integration.

Table of Contents

• Why Franchises Are Betting Big on AI
• Automating the Franchise Customer Journey
• Rethinking the Franchise Tech Stack
• FAQs

Key Takeaways

• AI in franchising is a necessity for competitive growth and operational efficiency.
• Forward-thinking brands like Neighborly are deploying AI-powered virtual assistants to scale customer service and lead management.
• AI enables franchises to automate customer touchpoints across the customer journey, from inquiry to post-sale feedback, improving speed and personalization.
• Consolidating a fragmented franchise tech stack through AI customer engagement platforms improves cross-departmental visibility, eliminates redundancies, and enhances customer engagement.

Why Franchises Are Betting on AI

During the webinar, Luke Stanton drew a powerful parallel between the rise of artificial intelligence and the advent of the internet—both revolutionary, both inevitable. His message to franchises was clear: AI is not just a tech trend. It is a competitive advantage that early adopters can’t afford to ignore.

Neighborly is walking the talk. The brand has deployed thousands of AI-powered virtual assistants across its franchise network to manage complex customer interactions at scale. These AI employees are streamlining operations, responding to inquiries around the clock, and delivering personalized service that would be nearly impossible to replicate manually. 

For franchisors, implementing AI isn’t just about reducing costs or automating routine tasks. It’s about transforming the franchise tech stack into a customer engagement platform that empowers local operators, enhances the customer experience, and helps achieve comprehensive franchise marketing automation. 

To demonstrate how effective AI can be in automating the customer journey, Chris Deianni shared a compelling example from a service-based franchise system. This particular business typically interacts with customers only once a year. To re-engage past clients, they launched an AI-assisted SMS campaign targeting a segment of customers who hadn’t booked a service in 12 to 15 months.

Using AI-powered virtual assistants, the campaign sent personalized messages such as, “It’s time for your annual service” or “Have you considered booking with us again?” What made the process powerful was that the AI could respond to customer replies in real time, reference CRM data, identify the correct franchise location in the U.S., and even book the appointment—completely autonomously.

The results spoke for themselves: 

• A 14% response rate.
• 53% of those who responded requested a booking.
• $34,000 in booked revenue.

This is a strong example of how franchises can combine targeted campaigns with smart AI integration to reactivate customers, drive bookings, and generate meaningful revenue with minimal human intervention. 

Automating the Franchise Customer Journey

The customer journey has evolved beyond static touchpoints to a dynamic, interconnected experience enhanced by AI. Modern customers expect 24/7 availability and personalized interactions, demands AI is well-equipped to meet. 

As more franchises embrace AI to drive efficiency and growth, marketing automation for franchises is evolving. Intelligent platforms can now deliver localized campaigns, automate follow-ups, and tailor messaging to provide full-scale customer journey automation while maintaining brand compliance. 

Here are the top four ways in which franchises can succeed in multi-location marketing to drive greater efficiency, reduce response time, and improve overall customer satisfaction without overburdening staff. 

1. AI Chatbots: Handling Initial Inquiries Instantly

AI-powered chatbots are often the first point of contact for potential customers. These virtual assistants can answer common questions, capture lead information, qualify prospects, and even initiate bookings—24/7. By eliminating wait times and instantly providing relevant information, chatbots help ensure no opportunity is missed. 

2. AI-Driven Lead Scoring and Qualification

Once leads enter the system, AI algorithms evaluate their behavior and engagement patterns to determine quality and purchase intent. AI lead scoring allows franchisees to prioritize high-value prospects and focus human efforts where they’ll have the greatest impact—moving leads faster through the funnel with less guesswork. 

3. Automated Follow-Ups and Appointment Scheduling

AI doesn't stop after a lead is captured. AI-powered customer engagement platform can send timely, personalized follow-up emails, remind customers of next steps, and automatically schedule appointments based on availability—eliminating friction and reducing drop-off. This is where marketing automation for franchises proves essential, allowing consistent communication while freeing up valuable time. 

4. Sentiment Analysis in Post-Sale Feedback

AI marketing tools can continue the relationship by collecting and analyzing customer feedback. Sentiment analysis tools parse reviews, surveys, and social comments to identify satisfaction levels, flag concerns, and surface actionable insights. Franchisors can monitor brand perception across locations and course-correct proactively to ensure solid reputation management for maximum success. 

Rethinking the Franchise Tech Stack

Modern AI platforms are helping to consolidate tech stacks in multi-location businesses, eliminating redundancy and bringing essential business functions under one roof. Instead of juggling separate tools for CRM, email marketing, customer service, and analytics, franchises can now unify their franchise tech stack into a centralized, AI-powered customer engagement platform. 

The Cost of Fragmentation

Disconnected systems can lead to:

• Inconsistent customer experiences.
• Inaccurate or incomplete performance data.
• Time-consuming manual tasks and duplicated efforts.
• Difficulty scaling marketing or operational strategies across locations.

By using AI as the backbone of their digital infrastructure, franchises can automate workflows, improve data sharing between departments, and unlock deeper insights. 

Practical Strategies for Tech Stack Unification

To move from fragmentation to full integration, businesses should consider these practical strategies to leverage AI in franchising:

• API Integration Strategies: Use open APIs to connect your core systems. Prioritize AI marketing tools that support flexible integration so data can flow seamlessly between platforms like your CRM, email marketing software, POS, and service desks.
• Choose Platform Partners Offering Native AI Tools: Choose technology partners that offer built-in AI functionality—like automated lead routing, smart campaign optimization, and predictive customer behavior modeling. This reduces your reliance on multiple vendors and ensures scalability.
• Vendor Evaluation Tips: When evaluating new tools or consolidating existing ones, ask the following:
  • Does this platform support multi-location structures?
  • Can franchisees manage local operations without sacrificing brand control?
  • Does it include AI-driven insights or automation features?
  • How easily does it integrate with our existing systems?

Looking Ahead: The New Frontier of AI in Franchising

The discussion concluded with strategic insights on embracing AI in franchising. For franchisors, AI is no longer optional but a critical competitive advantage. By harnessing AI, franchises can lead their industries, fostering growth and simplifying operations. The future belongs to those who adopt an AI-first mindset, leveraging its potential to drive system-wide sales and redefine customer experiences.

Watch the full AI for Franchise Growth: Customer Journey Automation webinar to learn how brands like Neighborly are using artificial intelligence to streamline operations and drive customer engagement. Alternatively, check out the Content Library for more webinars that will help you lead your market with confidence. 

AI in Franchising FAQs

1. Why is AI important for franchise businesses now?

AI improves operational efficiency, enhances the customer journey, and helps franchises stay competitive in a fast-evolving market. Franchises that integrate AI early gain an edge in both scalability and customer satisfaction.

2. What are some examples of AI in the franchise customer journey?

AI can automate live chat interactions, score leads, send personalized follow-ups, schedule appointments, and analyze customer sentiment—all with minimal manual input.

3. How does marketing automation benefit franchisors and franchisees?

Marketing automation provides consistent brand messaging while enabling local flexibility. Franchisees can run targeted campaigns while franchisors maintain oversight and brand alignment.

4. What is a franchise tech stack and why does it matter?

A franchise tech stack is the suite of digital tools a franchise uses to run its business. Consolidating it through AI leads to better data sharing, reduced complexity, and more streamlined customer experiences.

5. How do I start integrating AI into my franchise?

Begin with a tech audit to identify redundancies and gaps. Look for AI-powered customer engagement platforms that offer native integrations, support multi-location structures, and provide predictive analytics and automation capabilities.