AI for Franchise Growth

Cindy Stewart

Welcome to Franchise Fuel: Smarter Growth, the podcast where we explore how technology, strategy, and innovation ignite scalable success in franchising. I’m your host, Cindy Stewart, and today, we're diving into one of the hottest topics in growth marketing—how artificial intelligence is transforming both franchise development and local-level marketing for franchisees. Joining me is someone who lives and breathes this space: Vern Nicholson, VP of Strategy and Growth at Vet-tro Media. Vern, welcome to the show!

Vern Nicholson

Hey Cindy! Thanks for having me. Excited to dig into this topic—it’s moving fast and changing the game.

Cindy Stewart

Let’s start from the top. Vern, when it comes to franchise development, how is AI shaping how brands attract and engage with potential franchisees?

Vern Nicholson

Great question. At Vet-tro, we’re seeing tools that use predictive algorithms to analyze vast datasets—like business behavior, demographics, digital signals—and match those to ideal franchisee profiles.

Cindy Stewart

Do you, uh, have an example of this in action?

Vern Nicholson

Yeah, actually, I worked with a QSR franchise not long ago that needed to scale nationally but wanted to avoid oversaturation or investments in less profitable regions. We used an AI tool to analyze hundreds of data points—everything from foot traffic patterns to local income levels. It pinpointed key markets that were under-served but had high growth potential.

Vern Nicholson

It’s not just about generating more leads; it’s about acquiring better ones. AI helps us qualify leads in real-time, prioritize follow-ups, and even personalize outreach based on behavioral data. It’s like having a digital development rep working 24/7.

Cindy Stewart

That’s a huge leap from the old “spray and pray” model. I’ve been following tools like ai-adz, built by David Stein and Kylon Gustin. They’re using AI to dynamically create and test franchise recruitment ads based on top-performing variables. Have you seen these kinds of platforms in action?

Vern Nicholson

Absolutely. Platforms like ai-adz are pushing the envelope. They’re generating ad variants with messaging that adapts by audience segment, location, and even platform behavior. That level of dynamic targeting just wasn’t scalable before AI.

Cindy Stewart

Now let’s shift to the franchisees. AI is also empowering local owners to run smarter, more effective ad campaigns. How are you seeing AI support local marketing efforts?

Vern Nicholson

This is where things get exciting. Local franchisees often struggle with running ads because they lack time, tools, or expertise. But AI is democratizing access to performance marketing.With solutions like DevHub, created by Mark Michael and Daniel Rust, franchisees can launch compliant, brand-consistent landing pages and campaigns that still feel personalized to their local market. AI assists in optimizing copy, and imagery, all while keeping corporate in control of the brand.

Cindy Stewart

Right—and DevHub also integrates seamlessly with CRMs and location data, so franchisees can better understand their customer journey.

Vern Nicholson

Exactly. When AI is layered with CRM integration, it creates this virtuous cycle. You run a campaign, analyze who converts, then use that data to improve future targeting and messaging. Franchisees start seeing better ROI, and corporate gets insights they can scale across the system.

Cindy Stewart

With all this innovation, what are the biggest challenges you see franchises facing when trying to adopt AI?

Vern Nicholson

There are so many tools out there—brands don’t always know where to start. The second is integration. AI is powerful, but if it doesn’t sync with your CRM, POS, or ad platforms, you’re creating silos.

Cindy Stewart

With all this innovation, what are the biggest challenges you see franchises facing when trying to adopt AI?

Vern Nicholson

The number one issue is overwhelming. There are so many tools out there—brands don’t always know where to start. The second is integration. AI is powerful, but if it doesn’t sync with your CRM, POS, or ad platforms, you’re creating silos. That’s why we always recommend starting with a clear use case—like improving leed quality or automating local ad campaigns—then expanding from there. Choose tools that plug in easily, like ai-adz or DevHub, and build toward a connected tech stack.

Cindy Stewart

Makes sense. And the brands that do lean into this… what kind of future do you see for them?

Vern Nicholson

The future is adaptive and automated. We’re talking about franchise systems that continuously learn from data, automatically adjust campaigns in real time, and personalize at scale, both for development and for local marketing.Franchises that embrace AI now will have a major head start in reaching the right people with the right message, at the right time, and doing it efficiently.

Cindy Stewart

Such valuable insight, Vern. Before we wrap up, any final advice for franchise leaders tuning in?

Vern Nicholson

Yes—don’t wait for perfection. The best AI tools evolve with use. Start small, test fast, and focus on improving one core metric—whether it’s leed conversion or local store traffic. The results will speak for themselves.

Cindy Stewart

Love that. Vern Nicholson, VP of Strategy and Growth at Vetro Media—thank you so much for joining us.