Franchising is a popular route for businesses looking to expand without acquiring or growing organically. According to Statista, there are over 800,000 franchise businesses in the U.S. and this number is projected to increase annually. However, franchising involves complex legal contracts, compliance, and documentation, adding further complexity to the business model.
Harmonyze, based in Brooklyn, aims to simplify this process for franchisors through AI technology. The company recently secured a $2 million pre-seed funding round led by Bowery Capital to enhance its AI agents.
Harmonyze’s AI agents operate within a private cloud database, facilitating communication and completing over 200 tasks such as vendor payment verification and insurance renewal tracking. This streamlines operations, ensures compliance, and reduces time spent on administrative tasks.
Co-founded in 2023 by Gary Liskovich (CEO) and Jonny Greenspan (CTO), Harmonyze targets the franchising industry due to its unstructured data potential. The company’s focus on vertical SaaS solutions for franchisors differentiates it in the market.
Despite the demand for its services, Harmonyze plans to work with a select group of clients initially to gather feedback and iterate on its product. The capital from the funding round will primarily support hiring efforts to further develop the product.
In a space with limited competition, Harmonyze’s emphasis on serving franchisors with AI tools sets it apart. The company aims to help franchisors identify successful practices among franchisees that can benefit the entire network.
Looking ahead, Harmonyze targets franchisors overseeing large networks of franchisees. Liskovich acknowledges the potential to expand to smaller players in the future but sees significant opportunities in its current target market.
As the franchise industry continues to grow rapidly, Harmonyze is positioned to capitalize on this expansion. The company’s commitment to innovation and technology in franchising underscores its potential for success.
