Inside FLDC: Experts Share How AI Is Transforming Franchise Development

At the Franchise Leadership & Development Conference in Atlanta in October, artificial intelligence (AI) was once again front and center.

One breakout session, “AI and Technology Unlock the Next Generation of Franchise Leads,” brought together a panel of franchise marketing and development experts, including Samantha Tacca, senior manager, franchise marketing and development for Hand & Stone Massage and Facial Spa (and session moderator); Mike 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. Together, they unpacked ways artificial intelligence, generative tools, and smart data strategies are changing the way franchisors attract and convert quality leads.

Identifying leads in franchising can be difficult. But, as the panelists discussed, it’s an even bigger challenge to find the right leads and keep them engaged through a personalized digital journey. “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 key to the new search reality. “You want your brand to be part of the solution AI finds,” he said. That means structuring your online content in a Q&A or FAQ-style format because that’s the way AI platforms prefer to retrieve data. Clean, data-rich, and structured information helps franchise brands surface in AI search results.

Huddle House’s Ackley talked about how the brand integrates GEO into both PR strategy and franchise development. “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 between reactive and proactive AI. In franchise marketing, reactive AI answers inquiries and automates tasks while proactive AI predicts buyer behavior to deliver personalized outreach and drive smart lead engagement. “Proactive AI is the future,” he noted, “but it’s expensive right now. As more players enter the market, costs will come down, and capabilities will expand.”

Panelists also noted that AI’s power comes with potential pitfalls. Malmuth urged franchisors to loop in their legal teams early, addressing data privacy, model security, and accuracy concerns.

Though he acknowledged AI’s cost, Malmuth noted, “You can’t afford not to use AI.” Batteries Plus has shortened its lead-to-close process down to 10 weeks with AI’s help.

One of the most striking examples of AI use came from Batteries Plus, which has used AI to create short, personalized videos that greet prospects by name. It’s a human touch powered by technology.

The panel closed with a simple challenge to the audience: Keep creating. “Franchising is for the masses,” said Tacca, “but AI helps us personalize the experience.” Malmuth added, “AI can’t feed itself; it needs your creativity.”

As franchise systems adopt AI tools, one thing is clear: The future of lead generation isn’t just faster, but also smarter, more personal, and more human than ever.