Franzy, an AI-powered franchise marketplace, today announced that it has closed $2.2 million in seed funding to accelerate its mission of helping more people become business owners through franchising. The round was led by York IE, with participation from Front Porch Capital, Overline, Avalanche VC, and Daren Cotter Investments.

Franzy is bringing transparency and structure to franchising by giving owners a clear path to exit and buyers access to proven businesses with real cash flow. Today, Franzy’s platform delivers personalized franchise matching for new franchise units through its proprietary Fit Score, AI-powered recommendations and guidance, in-depth profiles for 3,000+ brands, and expert coaching. With this new funding, Franzy will launch the first dedicated franchise resale marketplace, enabling prospective franchisees to buy existing franchise units, compare opportunities with verified financials, and complete secure, data-driven transactions, all in one place. As 87% of franchise buyers now start their search online, digital-first platforms like Franzy are fast becoming essential industry infrastructure.

“Franzy is reimagining what it means to become a business owner,” said Joe Raczka, Managing Partner, York IE. “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.”

While 41% of employers plan to reduce their workforce, partly due to AI automation, many workers are being driven to seek alternate paths to financial security. As a result, the franchise industry continues to expand. Franchising makes up 6% of the United States’ GDP and is expected to reach $1 trillion by 2030. For millennials alone, franchisee ownership is up 52% in recent years and the franchise industry added 15,000+ new storefronts in 2024.

“Franchising remains one of the most proven paths to business ownership in America, but the secondary market is fragmented and opaque,” said Alex Smereczniak, co-founder and CEO of Franzy. “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.”

Several economic factors are accelerating interest in entrepreneurship and business ownership, including a shrinking white collar workforce, a surge in baby boomer retirees seeking to transfer their businesses and blue collar jobs going unfilled. Since launching in January 2025, Franzy has experienced explosive growth, attracting over 3,000 prospective franchisees and achieving 309% growth in its user base.

"In today's economy, traditional careers are disappearing, and everyone is becoming an entrepreneur,” said Katelyn Donnelly, Managing Partner, Avalanche VC. “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."

About Franzy

Franzy is the first marketplace built for the modern franchise buyer and seller, combining data-driven recommendations, real-time coaching, and a soon-to-launch resale platform that brings structure and liquidity to franchise resales. Founded by franchise and tech veterans Chris Wright and Alex Smereczniak, Franzy’s mission is to empower one million people to own their future through business ownership. You can learn more about Franzy and the company's mission at https://franzy.com/.

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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.