Franchise Tech Spending is Accelerating: Are You Burning Cash or Building Value?

You already know this, technology investment is no longer optional—it's imperative. As franchises continue to increase their technology spending to combat persistent challenges, the question isn't whether to invest, but rather how to invest wisely. The right technology partner can make the difference between technology that transforms your business and technology that drains your resources.

The Technology Investment Surge in Franchising

According to the 2025 Franchisor Survey conducted by the International Franchise Association (IFA) and FRANdata, franchise executives are doubling down on technology investments in unprecedented ways.¹ The data reveals a clear commitment:

• 75% of franchisors expect to increase their capital spending on technology and innovation in 2025—up from 73% in 2024
• 91% of business service franchisors plan to increase their technology spending
• 76% of health and fitness franchisors are boosting their technology investments
• 72% of sit-down restaurant franchisors are increasing allocations¹

This acceleration isn't happening in a vacuum. Franchisors are strategically deploying technology to address their most pressing challenges.  The survey reveals that 63% of franchise executives plan to leverage technology to increase revenues and cut costs in 2025—matching the strong focus seen in 2024.¹

The Hidden Costs of Undirected Technology Investment

Despite these increasing investments, many franchises approach technology spending without a clear strategic roadmap. They purchase solutions piecemeal, responding to immediate problems rather than building toward a cohesive technology ecosystem.  

This approach creates several critical problems:

1. Technology Fragmentation: Disjointed systems that can't communicate with each other
2. Wasted Resources: Overlapping technologies that provide redundant functionality
3. Unrealized Potential: Powerful tools that remain partially implemented
4. Security Vulnerabilities: Gaps between systems that create compliance and security risks

When franchisors invest without strategic guidance, they often find themselves with expensive solutions that fail to deliver the expected results.

Why a Technology Partner—Not Just Products—Is Essential

The most successful franchises are those that partner with trusted technology advisors who understand their specific business challenges. This distinction between "vendor" and "partner" is critical.

A vendor sells you a product. A partner provides:

• Strategic assessment of your technology needs
• Custom solutions tailored to your specific franchise model
• Implementation guidance that ensures technology adoption
• Long-term planning that aligns with your business growth

As the 2025 Franchisor Survey highlights, franchisors are prioritizing several key initiatives where a strategic partner becomes invaluable:

• Improving operations (over 60% of respondents)
• Assisting franchisees with recruiting efforts
• Enhancing employee retention strategies
• Implementing AI and increased automation (28% of franchisors)¹

How Leading Franchises Are Leveraging Technology Partners

The most innovative franchise brands aren't just buying technology—they're forming strategic partnerships to transform their operations. McDonald's comprehensive technology overhaul across 43,000 global locations isn't simply about purchasing new equipment; it's about implementing AI-powered systems and internet-connected kitchen equipment designed to optimize operations while reducing staff burden.¹

Similarly, Wendy's expansion of AI-driven drive-thru ordering to 600 locations by the end of 2025 represents a strategic technology implementation focused on improving order accuracy and allowing employees to focus on higher-value tasks.¹ These initiatives succeed precisely because they're guided by strategic partnerships that understand both the technology and the unique franchise business model.

The Sentry Approach: Partnership Over Products

At Sentry Technology Solutions, we understand that franchises don't need more products—they need a trusted guide to navigate the complex technology landscape. Our approach to franchise technology is built on partnership, not transactions.

Rather than simply selling you the latest tools, we:

1. Assess your specific challenges using our Technology Maturity Model
2. Create a strategic roadmap that aligns with your franchise growth plans
3. Implement solutions that address your most pressing needs
4. Provide ongoing guidance as technology and your business evolve

This partnership approach ensures that your technology investments deliver meaningful returns—increasing security, productivity, profit, and peace of mind.

The Future of Franchise Technology is Partnership-Driven Innovation

As franchise technology trends continue to evolve—from AI-driven customer support to IoT-enabled predictive maintenance¹—having a trusted technology partner becomes even more critical. You don't just need your laptops to print, you need a trusted guide for all your technology plans.  The franchises that will thrive in this environment aren't necessarily those with the biggest technology budgets, but rather those who invest strategically with expert guidance.

Don't let your franchise fall behind as competitors embrace new technology. Partner with Sentry to create a technology strategy that helps your business go further faster.

Learn more about how we serve the Franchise Industry.

Ready to transform how your franchise invests in technology? Schedule a Discovery Call with Sentry today to explore how our partnership approach can help you maximize your technology investment.  You can learn more about the full survey here.