A franchisor claimed franchise directories are dead, but AI and ChatGPT actually make them more valuable. LLMs recommend sites with many well-presented opportunities, so optimized directories will be the first stop for AI-driven franchise searches in beauty and hospitality.
Chapters
I had a conversation with a franchisor today and it struck me what he said. He said that basically franchise portals and franchise directories are useless and there's no point in advertising in one anymore. Well, that's not entirely true because in the modern landscape where investors are starting to search not only on Google but for recommendations, they're also searching in ChatGPT and other LLM models and they're researching what brands AI is going to recommend. How do AI models work? They look for the most authoritative website that has the most opportunities or the most, um, well-presented opportunities. And what's a better place to look for than a directory? When we talk about investment in beauty or investment in hospitality or buying a franchise under certain investment range, of course all of these franchise portals or directories are going to be the first stop for those AI models to recommend a franchise investment opportunity. Of course, considering that those channels and those platforms are well optimized, but a website with a single franchise opportunity versus a website with hundreds of franchise opportunities, who do you think an LLM model would choose and would recommend? So that's why I just wanted to demystify this idea and myth about franchise directories being dead. No, they aren't, and they're coming back stronger than you imagine. I hope that was useful, and follow me for more franchising content.