Summary

What if the greatest threat to your franchise concept isn't competition...but irrelevance?

In Part 2 of Stan Friedman's conversation with Batteries Plus Chief Development Officer Joe Malmuth, the discussion shifts from franchise development to franchise survival.

Joe argues that many franchise systems are facing a future they aren't prepared for. As AI changes how consumers discover brands, traditional search declines, and franchise categories become increasingly crowded, differentiation is no longer just optional.

It's survival.

Joe introduces the concept of "Google Zero," where AI-driven discovery tools begin replacing traditional search engines and reshaping how customers find products, services, and franchise opportunities.

He also explains why brands stuck at 25 to 50 locations often struggle to deliver on franchising's core promise of scale:

• purchasing power
• infrastructure
• brand awareness

Along the way, Joe shares:

• why being second or third in a category is increasingly dangerous
• What Seven Brew can teach the rest of franchising

• How Batteries Plus launched curbside pickup in just 24 hours during COVID
• Why small innovations often create outsized customer trust
• Three practical steps every franchisor should take regarding AI today

Part 1 of this conversation challenged conventional franchise development thinking, Part 2 challenges how franchisors prepare for the future itself.

This is a discussion that every franchise executive should hear.