The Future of Franchising: How AI and Digital Twins Are Revolutionizing Businesses

Franchises offer a unique business model in that franchise locations are individually owned and operated, but they are beholden to a set of restrictions and expectations set by the brand. Consistency is key in franchises because from the customer’s perspective, they expect the same level of quality and service from whatever franchise location they visit. Thankfully, by taking advantage of technology like spatial computing and digital twins, franchises can ensure their clients receive the most consistent, high-quality experience possible.

Spatial computing is the catch-all term for the type of technology that blends the physical world with virtual experiences. Most consumers are likely most familiar with spatial computing in the form of virtual reality (VR) and augmented reality (AR), which have been used for everything from video games to “virtual try-on” features for online stores. However, these are only scratching the surface of what spatial computing can do, as there are several business use cases that will revolutionize how businesses, especially franchises, conduct their operations.

Perhaps the most profound business example of spatial computing technology in action is the digital twin. As the name suggests, a digital twin is a digital representation of a physical object. By working with a digital twin rather than its physical counterpart, businesses can benefit from added convenience and increased safety when working with expensive or dangerous objects. Some businesses even create digital twins of entire systems, allowing them to break down operations component by component for purposes like simulations, streamlining operations, and troubleshooting.

How franchises can use digital twin technology

One way franchises can use digital twin technology is to ensure consistency in training. Many businesses have turned to metaverse-based training methods because they are more engaging, convenient, and consistent. By using digital twins, franchises can ensure that every franchise has access to the same training tools, ensuring every customer has the same high-quality experience with the business, regardless of which franchise location they visit.

Another use case for digital twin technology that could benefit franchise business owners is predictive analytics. Artificial intelligence really comes into play here, as its advanced data analysis capabilities allow models to run more complex simulations.

For example, a franchisee might want to investigate a supply chain issue. Digital twin technology, combined with artificial intelligence-powered predictive analytics, can allow franchise owners to run different scenarios until they identify the cause of the problem.

The virtual showroom is another powerful use case of digital twins for franchise businesses. In sales-based businesses, a virtual showroom can present customers with a digital twin of the product the business is selling. Not only can this virtual showroom be accessed from the comfort of the customer’s own home (and often with no specialized hardware), but it also allows the customer to inspect and interact with the product at a level of (simulated) detail that they might not even be able to with a physical product in hand. When combined with VR or AR technology, which is often powered by AI, virtual showrooms can even allow customers to see a business’s products in action in their physical space.

Considering the priorities of many franchise businesses, such as consistency and quality of service, efficient operations, and customer convenience, digital twin technology is a powerful tool in any franchise business owner's arsenal. By taking advantage of this innovation and its many varied uses, franchise business leaders can make their operations more efficient and provide the best possible service to their customers.

Joseph Callahan is the CEO of Ciright.