Franchise Update Issue 4, 2025 | Experts Share How AI Is Transforming Franchise Development

Written by KERRY PIPES

At the 2025 FLDC, artificial intelligence (AI) once again took center stage. In a breakout session, “AI and Technology Unlock the Next Generation of Franchise Leads,” Samantha Tacca, senior manager, franchise marketing and development for Hand & Stone Massage and Facial Spa, served as session moderator. Michael Ackley, senior director, franchise development and marketing for Huddle House and Perkins, Loren Eckart, founder of Vision Growth Labs, and Joe Malmuth, CDO of Batteries Plus, explored how AI and data-driven tools are reshaping franchise lead generation.

Finding leads is hard, but finding the right leads is even harder. “One way of increasing lead generation is through generative optimization,” Tacca said, “and then using AI to tailor every step of that lead’s experience.” Eckart described generative optimization (GEO) as vital to modern search. “You want your brand to be part of the solution AI finds,” he said, noting that clean, structured Q&A-style content helps brands surface in AI search results.

Ackley added that GEO now drives visibility and credibility. “It’s no longer about rankings; it’s about brand authority,” he said. “When someone searches ‘best restaurant investment under $250K,’ you want to be the relevant, authoritative answer.”

Malmuth distinguished reactive and proactive AI. Reactive tools automate tasks; proactive ones predict behavior and personalize outreach. “Proactive AI is the future,” he said. “As more players enter the market, costs will come down, and capabilities will expand.”

Still, Malmuth warned of AI’s risks and urged franchisors to involve legal teams from the start. “You can’t afford not to use AI,” he said, noting that Batteries Plus shortened its lead-to-close process to just 10 weeks and even uses AI to create personalized video greetings for prospects.

The session ended on a call to action. “Franchising is for the masses,” Tacca said, “but AI helps us personalize the experience.” Malmuth added, “AI can’t feed itself; it needs your creativity.”

Four conference attendees smiling together at the 2025 FLDC