Franzy, an AI-based franchise marketplace, has raised $2.2 million in seed funding to make business ownership more accessible. The funding round was led by York IE, with participation from Front Porch Capital, Overline, Avalanche VC, and Daren Cotter Investments.
The platform simplifies the franchising process for both buyers and sellers. It helps aspiring franchisees find their ideal matches using a proprietary Fit Score, AI-driven recommendations, expert coaching, and profiles of over 3,000 franchise brands. For current franchise owners, Franzy provides a structured exit path.
With this funding, Franzy will launch the first dedicated franchise resale marketplace, allowing buyers to explore existing units, compare verified financials, and complete secure transactions online. As 87% of franchise buyers begin their search digitally, Franzy aims to be the essential digital infrastructure for the franchise industry.
Amid economic uncertainty and workforce changes—partly due to AI automation—franchising is emerging as a viable path to financial independence. It currently represents 6% of the U.S. GDP and is projected to reach $1 trillion by 2030. Since its launch in January 2025, Franzy has experienced rapid growth, attracting over 3,000 aspiring franchisees and expanding its user base by 309%. With this momentum, Franzy is set to become the go-to platform for franchise discovery and ownership.
KEY QUOTES:
“Franzy is reimagining what it means to become a business owner. By bringing transparency and technology to both franchise discovery and resale, Franzy is building the digital infrastructure this industry needs, and creating new pathways to entrepreneurship in the process. We’re excited to partner with a team that’s tackling one of the franchise industry’s biggest untapped opportunities.”
Joe Raczka, Managing Partner, York IE
“Franchising remains one of the most proven paths to business ownership in America, but the secondary market is fragmented and opaque. Franzy’s new resale marketplace will give sellers a trusted exit and buyers access to vetted, cash-flowing businesses – bringing transparency and liquidity to a market that needs it.”
Alex Smereczniak, co-founder and CEO of Franzy
“In today’s economy, traditional careers are disappearing, and everyone is becoming an entrepreneur. Franchising is a prominent path to business ownership, and Franzy is bringing much-needed efficiency and education to the sector. We are thrilled to back this experienced team to transform a legacy industry and provide an on-ramp for hundreds of thousands of new franchise owners.”
Katelyn Donnelly, Managing Partner, Avalanche VC
