The role of AI in the Croatian franchise sector

Purpose: This research delves into the intersection of franchising and AI adoption in Croatia, with the aim of comprehending how AI technologies are harnessed to bolster business strategies and competitiveness within the franchise sector. Within the dynamic franchising landscape, integrating AI is pivotal for reshaping business operations and strategies. The study investigates how AI facilitates collective success withinfranchise networks, thereby augmenting their competitive edge. Methodology: Conducted in November 2023, the research surveyed 76 Croatian franchisors, with 35 respondents completing the questionnaire. Findings were meticulously analyzed, considering franchise sales status and business sectors. Results: Croatian franchisors exhibit optimism regarding AI’s potential to revolutionize operations but grapple with a significant knowledge gap concerning its implementation and benefits. Despite no statistical variance in AI adoption based on franchise sales or sectors, the majority acknowledges its competitive advantage. Nevertheless, many remain ambivalent about AI’s impact on franchise sales, underscoring theimperative for education and support. Conclusions : Croatian franchisors necessitate tailored education and support to surmount AI implementation challenges. Customized services can facilitate navigating the complexities of AI integration, with franchisors serving as leaders in introducing AI to their franchise network for the collective benefit. Further research is indispensable to pinpoint specific challenges and opportunities for maximizing AI benefits in the franchising sector.