Building AI Agents to Help Franchisors Analyze Unstructured Data | Harmonyze
Franchising has long been a popular method for businesses to expand and grow without the need to acquire other companies or expand organically. In the United States alone, there are over 800,000 franchise businesses, a number that is projected to continue growing year over year according to Statista. However, the process of franchising a business involves a multitude of contracts, legal compliance requirements, and documentation, adding layers of complexity to an already intricate business model.
Brooklyn-based company Harmonyze is aiming to simplify this process for franchisors by harnessing the power of artificial intelligence (AI). Recently, the startup secured a $2 million pre-seed funding round led by Bowery Capital to further develop its AI agents.
The innovative AI agents created by Harmonyze are designed to reside in a private cloud database, acting as a bridge between franchisors and their franchisees. These agents are capable of communicating with each other and executing over 200 tasks, such as verifying correct payments to product vendors or ensuring that insurance renewals are up to date. By automating these tasks, Harmonyze enables franchisors to maintain compliance in an industry that is heavily regulated, saving them valuable time that can be redirected towards strategic initiatives.
Founded in 2023 by childhood friends Gary Liskovich, CEO, and Jonny Greenspan, CTO, Harmonyze is the result of their combined expertise in product management and engineering. Liskovich explained that while they initially explored developing a product for the legal sector, they ultimately chose to focus on franchising due to the untapped potential of the market and a personal connection to the industry—Greenspan’s father owned a Totonno’s Pizza franchise.
Liskovich emphasized the vast amount of unstructured data present in the franchising space, which he believes AI can effectively unlock and translate into actionable insights. Since emerging from stealth mode in early 2024, Harmonyze has experienced strong demand from franchisors seeking AI-driven solutions. Despite the high demand, the company has opted to work closely with a select group of customers initially to gather feedback and continually enhance the product’s features.
With the majority of the pre-seed funding earmarked for expanding their team, Harmonyze is committed to further refining its product offerings. The funding round attracted participation from Focal.VC and several individuals from the franchise industry, underscoring the potential impact of Harmonyze’s AI technology in the franchising sector.
Harmonyze’s decision to target franchisors rather than franchisees was deliberate, as franchisors typically grapple with a greater volume of unstructured data, making them better suited for an AI-driven solution. Liskovich expressed optimism about the possibility of Harmonyze assisting franchisors in identifying best practices employed by top-performing franchisees that can be implemented across the entire network.
The startup’s success can be attributed to its vertical SaaS approach, focusing on providing comprehensive solutions to franchisors across various sectors, such as fast-food chains like McDonald’s, fitness franchises like Orangetheory Fitness, and retail outlets like UPS stores. Despite the diversity of franchised businesses, Liskovich noted that the internal structure of these companies follows a similar pattern, allowing Harmonyze to cater to a wide range of clients within the franchising industry.
While the franchise space currently lacks significant competition, Harmonyze is poised to capitalize on the sector’s growth potential. The company is targeting franchisors overseeing a substantial network of franchisees, with plans to expand its technology to accommodate smaller players in the future. Liskovich expressed enthusiasm about the expanding franchise market, highlighting the lucrative opportunities presented by its rapid growth trajectory.
In conclusion, Harmonyze’s innovative use of AI technology to streamline operations for franchisors marks a significant advancement in the franchising industry. By leveraging AI agents to analyze unstructured data, Harmonyze is empowering franchisors to make informed decisions, enhance compliance, and drive business growth in a rapidly evolving market landscape. As the company continues to innovate and expand its offerings, it is poised to revolutionize the way franchising businesses operate in the digital age.
