Harmonyze Plans AI Agents to Help Franchisors Interpret Unstructured Data

Franchising offers businesses a robust avenue for growth without necessitating acquisitions or organic expansion. In the U.S., the franchise sector is substantial, with over 800,000 franchises in operation, and this number is projected to continue rising. Franchising involves licensing a company’s business model and brand to external operators, presenting a scalable model that many businesses find attractive. However, this approach introduces significant complexity due to the extensive legal documentation, compliance requirements, and contractual obligations involved.

Addressing these challenges is Harmonyze, a Brooklyn-based startup that aims to streamline franchising through the use of artificial intelligence. Harmonyze recently secured a $2 million pre-seed funding round led by Bowery Capital to advance its AI-driven solutions. The company’s platform features custom AI agents that operate within a private cloud database, creating a communication bridge between franchisors and franchisees. These AI agents are designed to perform over 200 tasks, such as verifying vendor payments and monitoring insurance renewals, thus ensuring both compliance with industry regulations and a reduction in administrative workload.

Founded in 2023 by childhood friends Gary Liskovich and Jonny Greenspan, Harmonyze emerged from stealth mode in early 2024. Liskovich, the CEO, has a background in product management at startups like EvolutionIQ and SmartAsset, while Greenspan, the CTO, brings experience as an engineer from Salesforce. The founders initially explored the legal tech space but pivoted to franchising due to its complexity and personal connection—Greenspan’s father was a franchisee of Totonno’s pizza.

Liskovich highlighted the complexity of franchising, noting that despite its broad recognition, it involves a significant amount of unstructured data that AI can potentially manage and translate into actionable insights. Harmonyze’s AI-driven approach is designed to simplify these data-intensive processes, making it easier for franchisors to maintain compliance and manage their networks.

The funding from the pre-seed round will be directed towards expanding the team and enhancing the product. The round saw contributions from Focal.VC and various individuals with industry expertise. Harmonyze’s focus on franchisors rather than franchisees is due to the greater volume of unstructured data they manage, making their needs particularly suited to AI-driven solutions. Additionally, the startup aims to identify successful practices from high-performing franchisees and disseminate these insights across the network to improve overall profitability.

Harmonyze’s approach is to provide a vertical SaaS solution that caters to the common structural needs of franchisors, despite the diversity of franchised businesses, from fast-food chains to fitness centers. This targeted approach addresses the specific challenges faced by franchisors and differentiates Harmonyze from other potential competitors.

The startup initially targets larger franchisors with extensive networks, but it acknowledges the future potential to develop solutions for smaller franchises as well. Given the rapid growth and expansion of the franchise market, Harmonyze is positioned to capitalize on this opportunity and contribute significantly to the evolution of franchising practices.

As Liskovich observed, the expanding franchise sector represents a promising and dynamic market for innovation and growth. This burgeoning industry, characterized by its substantial size and rapid expansion, offers ample opportunities for technological advancements and process improvements. Harmonyze’s AI-driven solutions are well-positioned to capitalize on this growth, addressing the sector's complex challenges and unlocking new efficiencies. By streamlining compliance and administrative tasks for franchisors, Harmonyze not only simplifies operations but also enhances the potential for increased profitability and scalability across the franchise network.