
I get a lot of questions these days about AI and franchising, and most of them come from people who are already deep into their own research. Sometimes their ChatGPT franchise research.
These franchise buyers have been using ChatGPT for weeks, sometimes months, before they ever talk to me. That’s a fairly new development in my 25 years doing this work, and it’s starting* to change the kinds of conversations I have with buyers.
*Unless they don’t tell me they’re using AI to help them with their franchise search/research. Sneaky.
With that in mind, I want to walk through what I actually tell people when they show me their ChatGPT franchise research results, because the same issue comes up almost every time.
Key Takeaways on ChatGPT Franchise Research
I’ve read a lot of AI-assisted franchise research over the past year, and it almost always makes the same mistake.
Buyers ask AI whether they should buy a specific franchise, and AI answers them, confidently, even though it has no real way to know.
In this post, I’ll walk through why that question is the wrong one to ask, what a better question looks like, and exactly where I tell every buyer I work with to stop trusting the answer and start checking it themselves.
FYI: I’ve been an independent franchise ownership advisor for years.
Somewhere around a year or so ago, I started noticing something new in the buyers I work with.
They’d show up to a call with me already holding a printed-out or screenshotted ChatGPT conversation. “I already asked AI about this one,” they’d tell me, half proud of themselves.
Here’s the thing. I love that they’re doing this. I really do. It means they’re curious, they’re trying to get ahead of the process instead of just calling a broker and doing whatever they’re told.
But almost every single one of those conversations has the same problem in it, and I want to walk you through it, because I think it’s the single biggest AI mistake franchise buyers are making right now.
The Question Nobody Buying a Franchise Should Be Asking ChatGPT
Buyers ask AI “should I buy this franchise?” That’s the question. Nearly every time.
And AI answers it. Confidently. With paragraphs of reasoning that sound informed and balanced.
Here’s what I warn people of:
The question can’t actually be answered by ChatGPT or any other AI platform.
Bluntly, why would you ask a freaking machine anything that could significantly affect your life…your financial well-being? C’mon! Let’s think about this for a moment.
- AI doesn’t know if you can handle managing fifteen employees.
- It doesn’t know if your marriage can survive what is almost always a rough first year of starting a business.
- It doesn’t know if the franchisor’s sales rep was blowing smoke about “only one territory left.”
More importantly, AI chatbots don’t know you.
AI can’t get into your head. Into your soul.
Instead, AI just answers your question because that’s what it’s built to do.
The fact is, AI will generate a confident-sounding answer to almost any question you ask it, whether or not it actually has the information needed to answer it well.
You should never trust Gemini or Claude or ChatGPT to answer a life-changing question like the one I presented to you at the beginning of this section.
What I Tell Franchise Business Buyers to Ask ChatGPT Instead
I tell every buyer the same thing.
Stop asking AI to decide.
Instead, start asking it to help you check your own thinking. Why?
Because doing it that way is a completely different use of the tool, and it’s the one that actually works.
Instead of “should I buy this franchise,” ask it to break down an Item 19 disclosure line by line.
- Ask it to translate a piece of legal language you don’t understand.
- Ask it to help you write down validation call questions that get past a rehearsed answer.
- Ask it to help you build your own walk-away conditions before you’re sitting across from a franchisor with a pen in your hand.
All of that is work AI does well. None of it requires AI to know something it can’t actually know.
Where I Draw the Line, Every Time
I tell every buyer this part directly, because it’s the part nobody wants to hear when they’re excited about a brand.
Chat GPT/AI cannot verify a franchisor’s real financial health. It cannot sit in on your validation calls and notice when someone’s answer sounds too smooth. It has no legal training, and it will never tell you that on its own, which is exactly what makes it risky in this specific spot.
Note: AI doesn’t have a financial incentive to tell you great things about a specific franchise opportunity.
ChatGPT is built to give you an answer, not to tell you when it doesn’t have one.
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That’s a subtler problem, and it’s the one I think most buyers haven’t caught onto yet.
The Bottom Line on ChatGPT Franchising Research
I’m not telling you to stop using ChatGPT in your franchise search.
I’m telling you to point it at the right things.
Use it to organize, translate, and prepare. Don’t use it to decide. That decision has always belonged to you, your accountant, and your franchise attorney, and no amount of confident-sounding AI paragraphs changes that.
If you want the actual sequence of questions I’d hand you if we were working together directly, I put all of it into The Franchise Buyer’s AI Playbook. And a lot more.
52 prompts, mapped to the real buying journey, and I wrote a plain warning on every single one about exactly how the AI’s answer can mislead you. $27. One-time.
I know you’ll like it and find it valuable in your franchise search and ChatGPT franchise research.
Guaranteed.
About the Author
Joel Libava is The Franchise King® — an independent franchise advisor with 25+ years in the industry, two published books on franchising, and his writing has been featured in The New York Times, Forbes, CNBC, Entrepreneur® Magazine and others. In addition, he wrote exclusively for the U.S. Small Business Administration blog for eight years. He doesn't sell franchises. Instead, Joel helps you figure out if franchise ownership is actually right for you — and if it is, teaches you his powerful, proven-to-work franchise research techniques, so you can make a smart, informed decision on a franchise to own and be your own boss.
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