If your franchise already has legs on your home turf—multiple successful locations open with proven track records and an established franchise system that would do well in diverse cultures—then your next step may be international expansion. But going international is no walk in the park. Fortunately, the proliferation and availability of artificial intelligence, or AI, has made it easier to do a deep dive into the intricacies of foreign markets, as well as to support and monitor franchisees who may be hundreds, or even thousands, of kilometers away.

We’re all familiar with smart buildings and how technology can save money, time, and energy by regulating temperature variances, security systems, and electricity use. And robots delivering our packages and flipping our  burgers are becoming an increasingly popular labour solution for businesses. The more you can automate, the more predictive your business expenses become.

Incorporating AI into your business, especially when you’re moving into unfamiliar territory, can automate and streamline your franchise’s best practices, provide you with both data and its analysis, and solidify interactions between staff at headquarters and in the field. While human relationships and personal contact are paramount to a successful partnership domestically or abroad, AI can help those humans do their job more efficiently.

AI provides many solutions, but also some challenges to address.. Here are some key areas where you’ll want to consider using AI, as you explore international franchise expansion:

Translations of documents, signage, and messaging

Gone are the days when translating documents into another language meant a quick run through Google Translator. Large language models (LLMs) have cracked the code on the nuances of individual languages, as well as interpreting the language of business. That said, contracts, especially, with their abundance of formal, often stilted, legal phrasing require an expertise in translating so there are no misunderstandings or challenges down the road.

So, while AI may be a tool to help begin the translation process, review by a native speaker and subject matter expert will remain important, particularly in legal settings. That same level of care also needs to be taken with employee handbooks, signage, marketing messages, and operations manuals. After all, your master franchisee for a country will need to have a clear understanding of what they’re selling before signing deals with individuals or groups.

Predictive analytics

One of the best applications of AI is using predictive analytics to mine the abundance of data franchises run on and forecast future trends and events. A business’ numbers tell a story that will sell or sink a franchise, so being able to reduce information into byte-size pieces that are easy to digest gives you an advantage over the competition. It will also help you to identify trends, to understand what’s working and what needs tweaking, and allow you to predict what’s coming down the road and prepare for it or alter your course.

Supply chain and logistics optimization

When dealing with foreign markets and a whole new set of variables, AI-driven solutions can help predict costs and availability of materials and shipping outside Canada, along with the timeline for their arrival. This ability to forecast is even more important when dealing with other markets, whether they are just across the border or halfway around the world from your home base. There are numerous cases of franchises not being able to get their proprietary products to their overseas franchisees, which is why being able to manage your supply chain efficiently, plus finding local sources that can manufacture those products per your specs, is vital to meeting consumer demand and ensuring product consistency.

Site selection software

The old real estate saying, “location, location, location,” is never more relevant than when entering a new marketplace. Finding the right spot for your first unit in another country can make or break your expansion plans. You’ll obviously need to rely on your experts in your destination country, plus the franchisee or master franchisee you’ve signed with, but using AI can take the guesswork out of the selections by analyzing traffic and shopping patterns, as well as assessing common area maintenance and square-footage costs in relationship to neighbouring sites.

And while you’re doing your due diligence, keep in mind that not every franchise translates well to other cultures. If you only want to dip a toe into international waters, a good place for Canadians to start is typically your neighbour to the south, the U.S. Once you’ve gained experience there, future business in foreign regions can be easier to navigate.

Chatbots

Chatbots, computer programs that mimic a conversation between humans, can be used not only for online consumer engagement, but also to answer potential franchisees’ routine questions that have predictable answers. This saves employee time, and also gives you the ability to respond 24/7.

Today’s younger generations don’t remember a time when responses came via the postal service or a fax, or when long-distance phone calls were expensive enough that people thought twice before calling someone out of their local calling area. They expect follow-up to their queries immediately, if not sooner. When a prospect shows interest in hearing more about your offering, you want to engage them before your competition does. The next step is then connecting them with a person, but chatbots can save your franchise salespeople time by filtering out leads that aren’t serious contenders.

Social media/marketing

Using AI in your marketing to franchisees helps you personalize your communications and target the right people with the right message. It can also be used to develop your website content and social media posts, schedule advertising, and expand internet searches.

Even with the new abundance of AI and other technology tools available, it’s wise to consult an international franchising expert, along with your trusted advisors, to help you select the right solutions and target the right markets. Leveraging AI is not inexpensive; therefore, you’ll need to do your homework to determine what will work for your staff and brand, and the appropriate timing for onboarding it.

Emiliano Jöcker is a Senior Consultant with the world’s leading franchise consulting firm, iFranchise Group. With almost 20 years in franchising, he has experience in multiple facets of the industry: both on the franchisor and franchisee sides, as well as in franchise consulting. He can be reached at +1.708.957.2300 or info@ifranchisegroup.com.