E18: Using AI In Franchise Development: Insights From Franchisely

Hosts: Michael Hyam and Liane Caruso  
Guests: Willem van Daalen of Franchisely

In Episode 18 of The LFG Podcast, hosts Liane Caruso and Michael Hyam invite Willem van Daalen, President and CTO of Franchisely, for an engaging discussion on using AI in franchise development.

Willem brings a fresh perspective to the franchising industry as a relative newcomer. With a background in engineering, he co-founded Franchisely almost three years ago, leveraging over a decade of experience in software development to create solutions tailored to the unique needs of franchise businesses.

Podcast Summary: Using AI in Franchise Development, Modern Leadership, and Scaling Operations.

Using AI For Real Problems

Willem emphasizes using AI to address specific, tangible problems within franchise operations rather than applying AI for its novelty. The focus is on making AI tools approachable and genuinely useful.

AI tools have been developed for managing the top of the Franchise Development (FranDev) funnel. Key functions include:

Scheduling: Automating meeting setups and follow-ups.

Qualifying Leads: AI can help evaluate potential franchisees more efficiently.

Support and Communication: AI is also used for handling support requests between franchisors and franchisees. 

Using AI In Franchise Development – Be Cautious 

Willem advises against jumping into AI without a clear purpose. He recommends:

• Starting with a Problem: Identify the pain points in operations before exploring AI solutions.
• AI Policies: Develop a straightforward policy to guide AI usage within the organization, ensuring alignment and ethical practices.
• Vendor Scrutiny: Be critical of AI solutions offered by vendors, ensuring they provide real value rather than falling for marketing buzz.

Being Aware Of Limitations

While AI can enhance efficiency, Willem stresses the importance of preserving the human connection in franchising. AI should augment human effort, especially in sensitive areas like relationship-building and support.

The AI systems developed by Willem’s team are intentionally narrow in scope to prevent overpromising and underdelivering. For instance:

• If the AI cannot answer a question, it quickly redirects the user to human support with a clear message.
• This approach ensures the AI complements human efforts rather than replacing them.

The conversation inspires both franchisors and aspiring entrepreneurs to think differently about how they approach using AI in franchise development. It demonstrates the value of combining traditional practices with modern technological solutions to stay competitive in a fast-evolving market.

Listen to the full episode now to hear more from Willem and the LFG Podcast team!