Franchising has long been a popular business model for those looking to expand their reach without the risks of traditional growth methods. With over 800,000 franchise businesses in the U.S. alone, the industry shows no signs of slowing down. However, the complexities of franchising, from legal compliance to administrative tasks, can often be overwhelming for both franchisors and franchisees. This is where Brooklyn-based Harmonyze comes in, offering AI solutions to streamline operations and ensure compliance within the franchising sector.
Harmonyze was founded in 2023 by Gary Liskovich and Jonny Greenspan, childhood friends with backgrounds in product management and engineering, respectively. Initially exploring the legal space for product development, the duo eventually shifted their focus to franchising after recognizing the untapped potential of the market. With Greenspan’s personal connection to a Totonno’s pizza franchise, the decision to delve into the franchising space was a natural fit for the duo.
The Role of AI in Franchising
Harmonyze’s custom AI agents operate within a private cloud database, facilitating communication between franchisors and franchisees while handling over 200 tasks efficiently. From monitoring vendor payments to ensuring insurance renewals are up to date, these AI agents alleviate the burden of administrative duties for franchisors. This not only enhances compliance within the heavily regulated industry but also frees up time for strategic decision-making.
Market Response and Future Plans
After emerging from stealth mode in early 2024, Harmonyze has experienced strong demand from franchisors seeking innovative solutions to their operational challenges. Despite this, the company remains selective in its customer base, prioritizing feedback and product iteration. The recent $2 million pre-seed funding, led by Bowery Capital, will primarily be allocated towards expanding their team to further develop their AI-powered platform.
The Franchisor-Focused Approach
Unlike traditional software solutions that target franchisees, Harmonyze strategically focuses on addressing the needs of franchisors who grapple with vast amounts of unstructured data. By harnessing AI technology, the company aims to help franchisors identify successful practices among franchisees that can be scaled across the network. This approach not only enhances overall profitability but also fosters a culture of innovation within the franchise ecosystem.
As Harmonyze continues to carve a niche in the franchise industry, their vertical SaaS model caters to franchisors across various sectors, ranging from fast-food chains to fitness studios. Despite the lack of direct competition in the market, the company remains committed to offering tailored solutions for franchisors overseeing extensive networks of franchisees. With the franchise market expanding at a rapid pace, Harmonyze is well-positioned to capitalize on this growth and drive innovation within the industry.
Harmonyze’s innovative AI-driven approach to franchising presents a new frontier for businesses seeking to navigate the complexities of the industry with ease. By leveraging technology to streamline operations, ensure compliance, and drive profitability, Harmonyze is reshaping the future of franchising one AI agent at a time.