Artificial Intelligence (AI) is transforming industries at a rapid pace and learning how to use AI strategically as an important factor in your business success. Franchising, especially in the health and fitness sector, is changing from outdated legacy systems to building AI-driven customer experiences,
In a must-listen episode of the Alloy Personal Training Business Podcast, host Rick Mayo sits down with Parnell Woodard, founder of The Franchise CTO and a seasoned tech entrepreneur, to discuss how AI and digital transformation are shaping the future of franchising. View this insightful conversation into what’s happening now—and what’s coming next.
Meet Parnell Woodard: Technologist, Entrepreneur, Franchise Insider
Parnell brings over 25 years of experience at the intersection of entrepreneurship and technology. He’s built and sold multiple companies, including one of the first data platforms that connected directly to Mindbody’s backend. His platform, IntelliHub, moved up to 15 terabytes of data per day and served over 250 franchise brands worldwide.
After selling IntelliHub, Parnell launched The Franchise CTO, where he now helps franchise businesses modernize operations, improve customer experiences, and scale using tech and AI. His unique background as a multi-unit franchisee with Elements Massage gives him a deep understanding of both the technical and operational sides of the business.
Legacy Systems: A Franchising Roadblock
One of the biggest challenges in franchising is the reliance on outdated, fragmented systems. According to Parnell, many businesses are still running on software built decades ago, making it extremely difficult to adapt, integrate, or scale.
“You’re not going to untangle legacy systems in three months,” Parnell says. “You’ve got to have a long-term plan, led by the CEO’s vision. Technology should support that vision—not lead it.”
Parnell explains that organizations must be willing to step into temporary discomfort (like messy transitions or temporary productivity dips) in order to evolve. He likens the process to climbing a mountain—you might have to descend into a valley before you can ascend to the next peak.
Digital Transformation Done Right
Rather than jumping on the latest tech just for the sake of it, Parnell emphasizes the importance of strategy.
- Have a Clear ROI: Whether it’s increased efficiency or cost savings, the investment must pay off.
- Start With Beta tests: Pilot new systems with a few franchisees before a full rollout.
- Address Training and Adoption: The least tech-savvy operators often delay success—training is key.
- Standardize Definitions: Align on key metrics like “conversion rate” to avoid confusion across your network.
“The success of digital transformation isn’t about tools. It’s about alignment, planning, and execution,” he explains.
Agentic AI: The Next Leap in Automation
Beyond familiar tools like ChatGPT, Parnell introduces the concept of Agentic AI—intelligent agents that don’t just create content but act independently within workflows. Think AI that makes decisions, follows up with leads, and personalizes training protocols.
Examples Agentic AI In Franchising
- Automated sales outreach and lead scoring
- CRM tools that adapt to user behavior
- Personalized client journeys across platforms
- AI-assisted training content for staff and members
As Rick notes, many vendors (LMS platforms, CRM, marketing tools) are building their own AI features. The future lies in centralized operators that can unify data across platforms and take action in real time.
The Fitness Industry: Hybrid Coaching & Wearable Integration
Parnell sees two major trends shaping the future of fitness franchising.
1. Wearables & Data Integration
Wearable tech—heart rate monitors, sleep trackers, glucose sensors—is becoming more precise and accessible. As AI evolves, it will be able to analyze that data to deliver personalized fitness and nutrition recommendations.
“Imagine your wearable telling you on Monday that you need a 60-minute cardio session because you had a bowl of chips on Saturday,” Parnell jokes—but he’s only half-kidding.
2. AI-Powered Hybrid Coaching
AI can augment personal trainers by helping them scale their efforts. With the right tools, a trainer could oversee dozens more clients by automating routine programming, check-ins, and adjustments—all personalized by AI but guided by human expertise.
AI and B2C Marketing: The New Role of the CMO
Marketing has been fundamentally changed by AI—and it’s pushing Chief Marketing Officers (CMOs) to become Martech (marketing technology) experts. According to Parnell, the traditional CMO role is evolving into one that’s deeply analytical, tech-savvy, and able to align marketing with operations.
AI-Powered Marketing Tools
- Create targeted campaigns automatically
- Personalize outreach with behavior-based triggers
- Analyze effectiveness and pivot quickly
Even small franchisees can generate professional, effective marketing content with a few prompts. Rick gives the example of writing newsletters using AI: “You give it a few directions, tweak the tone, and it’s ready to go.”
Risks & Responsibilities in the AI Era
While AI offers massive benefits, there are also risks. Parnell warns against casually inputting sensitive data into free tools like ChatGPT. “If you’re not using a paid or siloed version, you could be feeding private client data into public models. That’s a liability,” he explains.
Clear internal policies and franchise-wide education around AI use are now essential. Franchise brands must define boundaries to avoid legal and ethical issues—especially when handling client health information.
Communication: The Hidden Benefit of AI Adoption
Interestingly, one of the side benefits of working with AI is improved human communication. Rick notes that when using AI tools, you must be extremely clear in your prompts to get the results you want. “It made me think—are we giving instructions clearly to our team and franchisees? Probably not,” he admits.
This lesson is powerful. Whether it’s defining conversion rates, sending directives, or offering support, clarity is the backbone of successful systems and culture.
What’s Next for Franchising and Fitness?
Here’s what Parnell sees on the horizon:
- Operator Bots: AI agents that manage cross-platform tasks, synthesize data, and deliver insights on demand.
- Better Predictive Analytics: AI will help franchisees anticipate churn, identify high-value leads, and optimize performance.
- Personalized Fitness Ecosystems: AI-curated plans based on wearable data, intake tracking, and individual goals.
- Smarter Local Marketing: Franchisees will create high-converting content with minimal effort using AI writing and design tools.
- Smarter Decisions: AI won’t replace franchisors or franchisees—but it will empower them to make smarter, faster decisions.
Final Thoughts: Embrace AI or Get Left Behind
Rick and Parnell agree: the pace of change is rapid, and brands that don’t adopt AI risk falling behind.
“AI won’t take your job—but someone who knows how to use AI will,” Parnell warns.
More than a trend, AI represents a new standard in efficiency, personalization, and growth. Whether it’s automating sales workflows, helping trainers scale, or improving franchise communication, the impact is already profound—and growing by the day.
Want to Learn More?
🌐 Website: The Franchise CTO
🔗 Parnell Woodard LinkedIn
Check Out Rick and Parnell In this Podcast: How To Leverage Technology To Become A Franchise Powerhouse
Visit alloyfranchise.com to learn how technology, leadership, and innovation come together to build better fitness businesses.
Podcast 282
Key Takeaways
- Intro (00:00)
- Parnell Woodard’s background in tech & franchising (02:09)
- The biggest challenges with legacy systems in businesses (07:09)
- How businesses should approach digital transformation (10:13)
- The explosion of AI in sales, CRM, and marketing (16:48)
- Wearables and AI-driven hybrid fitness coaching (22:58)
- How AI is reshaping marketing & why CMOS must adapt (26:25)
- Parnell’s hilarious karaoke story in Bermuda (29:16)