July 15, 2025 – Charlotte, NC – Franzy, an AI-powered franchise marketplace, today announced it has raised $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, Daren Cotter, and Eric Eubank.
Since launching in January 2025, Franzy has experienced explosive growth, attracting over 3,000 prospective franchisees and achieving 309% growth in its user base. The platform now features more than 3,000 franchise brands and has facilitated seven franchise agreements in Q2 alone, generating $300,000 in projected revenue.
A significant portion of the funding will support the launch of the industry’s first dedicated franchise resale marketplace, addressing a category long overdue for innovation.
The franchise resale market is growing rapidly, with more than 1,200 franchise resale listings active in 2023 – representing a 27% year-over-year increase. This surge reflects a rapidly expanding secondary market driven by retiring owners seeking to transfer their businesses as 10,000 baby boomers retire every day.
Franzy aims to bring transparency and structure to the industry, giving owners a clear path to exit and buyers access to proven businesses with existing cash flow.
“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.”
Franchising makes up 6% of the United States’ GDP and is expected to reach $1 trillion by 2030. Several economic factors are accelerating interest in entrepreneurship and business ownership, including a shrinking white collar workforce and blue collar jobs going unfilled.
According to the World Economic Forum’s Future of Jobs Report 2025, 41% of employers plan to reduce their workforce as AI automates certain tasks. Many workers are being driven to seek alternate paths to financial security, with millennial franchisee ownership up 52% in recent years.
Meanwhile, the franchise industry continues to expand, with output rising 4.1% in 2024 to reach $894 billion and the addition of 15,000+ new storefronts.
Eighty-seven percent of franchise buyers now begin their search online, positioning digital-first platforms like Franzy as essential infrastructure for industry growth and discovery.
“Franzy is reimagining what it means to become a business owner,” said Joe Raczka, Managing Partner at 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.”
“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.”
The funding will fuel continued growth of Franzy’s platform and coaching services while enabling the company to build the resale marketplace that the industry has been waiting for.
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/.
Media contact
Ebony Lewkovitz
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