Franchising offers businesses a unique path to growth, bypassing traditional methods like acquisitions or organic expansion. With over 800,000 franchise businesses in the U.S. alone, the industry continues to boom. However, managing a franchise network comes with its own set of challenges—complex legal requirements, documentation, and compliance that can overwhelm even the most experienced franchisors.
Enter Harmonyze, a Brooklyn-based startup aiming to streamline these processes with the power of AI. Founded in 2023 by childhood friends Gary Liskovich and Jonny Greenspan, Harmonyze just secured a $2 million pre-seed round led by Bowery Capital to expand its innovative platform. The startup’s AI agents operate in a private cloud, acting as a bridge between franchisors and franchisees, automating over 200 tasks like verifying payments to vendors and ensuring up-to-date insurance renewals. This reduces the administrative burden on franchisors, allowing them to focus on scaling their businesses while staying compliant with industry regulations.
Liskovich and Greenspan's journey into franchising wasn’t accidental. With Greenspan’s personal connection to the industry—his father owned a Totonno’s Pizza franchise—the duo recognized the untapped potential of AI in a market flooded with unstructured data. After exiting stealth mode in early 2024, Harmonyze quickly attracted interest from franchisors eager to leverage AI for more efficient operations. However, the company is taking a measured approach, partnering with a select group of customers to refine its product based on real-world feedback.
Harmonyze’s focus on vertical SaaS for franchisors, rather than individual franchisees, has proven to be a smart strategy. The startup aims to help franchisors not only manage their networks more effectively but also identify and replicate the innovative practices of top-performing franchisees, much like how McDonald’s Filet-O-Fish originated from a franchisee's creativity.
Despite the franchise sector’s size and consistent growth, competition remains surprisingly scarce—a gap Harmonyze is eager to fill. For now, the company is concentrating on franchisors with extensive networks, though plans to expand its technology to smaller players are on the horizon. With the franchise market showing no signs of slowing down, Harmonyze is poised to play a significant role in the industry's future, helping franchisors navigate the complexities of growth with cutting-edge AI solutions.
