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How AI Is Revolutionizing Franchise Research and What You Must Know in 2026

January 12, 2026 • Stacey Riska • Episode 122

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.

1. How AI Is Changing Franchise Research

AI systems can rapidly analyze massive datasets, generate business recommendations, and simulate candidate evaluations. These tools can:

🧭 Suggest industries aligned with user profiles (e.g., service-based, home-based, or pet-related franchises).
💰 Summarize investment requirements and operational expectations.
🛡️ Highlight potential “AI-proof” industries resistant to automation.

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.

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.

4. Human Expertise: The Missing Link

While AI can introduce aspiring franchisees to basic ideas, human franchise placement specialists add unmatched value by: