Artificial Intelligence (AI) has become a major player in nearly every industry, and franchising is no exception. 🌍 Entrepreneurs exploring business ownership are increasingly turning to AI platforms like ChatGPT and Gemini for insights. However, as discussed here, AI’s role in franchise evaluation presents both opportunities 💡 and major limitations.
1. How AI Is Changing Franchise Research
AI systems can rapidly analyze massive datasets, generate business recommendations, and simulate candidate evaluations. For franchise seekers, this offers instant access to franchise options, business models, and financial summaries. These tools can:
🧠Suggest industries aligned with user profiles (e.g., service-based, home-based, or pet-related franchises).
đź’° Summarize investment requirements and operational expectations.
🛡️ Highlight potential “AI-proof” industries resistant to automation.
Despite these advantages, AI-generated recommendations should be treated as preliminary insights rather than final decisions.
2. The Gemini and ChatGPT Experiment
In the video, our hosts tested both AI systems using a candidate profile: a 52-year-old executive looking to leave corporate life for business ownership.
Gemini’s Output: Provided a 40-page report full of optimism but lacking realism. It suggested franchises like commercial cleaning and pet services without addressing financial feasibility or territory limits.
ChatGPT’s Output: Produced a more strategic assessment, identifying franchises that fit leadership skills, semi-absentee ownership, and long-term equity potential.
Both tools interestingly emphasized “AI-proof” business models — showing that even AI recognizes its disruptive potential. 🤯
3. The Limitations of AI in Franchise Decision-Making
The episode’s key message: AI cannot replace human expertise in franchise matchmaking. The Risases identified major shortcomings:
❌ Inaccurate Financial Matching: AI recommended Dogtopia despite its $600K+ cash requirement, far above the candidate’s $35K.
❌ No Territory Awareness: AI doesn’t track franchise territory availability, which changes frequently.
❌ Emotional Disconnect: AI cannot evaluate personal motivations, values, or lifestyle aspirations.
❌ Over-Optimistic Bias: AI tends to give unrealistically positive recommendations.
4. Human Expertise: The Missing Link
While AI can introduce aspiring franchisees to basic ideas, human franchise placement specialists add unmatched value by:
Conducting financial and personality assessments.
Matching candidates to opportunities that fit their “why.”
Providing realistic investment advice and territory verification.
Guiding clients through the full franchise selection and onboarding process.
Franchise consultants act as translators — turning AI’s data into human-focused strategy. đź§
5. The Balanced Approach: AI + Human Guidance
Instead of competing, AI and consultants can collaborate effectively. AI can:
Help clients explore industries before consultations.
Educate them on franchise terminology and business structures.
Generate a short list of franchises for discussion.
This hybrid model allows AI to manage data 📊 while humans handle emotion and context — a partnership that enhances decision quality.
AI tools like ChatGPT and Gemini have transformed how entrepreneurs research franchises, but they cannot replace human insight, emotional intelligence, and market experience. Future franchisees should use AI to learn, not to decide. Ultimately, success in franchising requires personal clarity, financial readiness, and expert guidance. 🚀What's Your Next? - Podcast
  | Author BioI’m Stacey Riska aka “Small Business Stacey”, your franchise placement specialist. I help aspiring business owners find the PERFECT franchise so they can get to the next level in life and business. |
