Hello, I'm Michael Kithcart. I'm a high-performance coach and creator of the Wynning Your Way framework. Welcome to the Champions of RISK Podcast, where we examine the many aspects of risks so that we can all navigate life with more courage, confidence, and humor together. Franchising is 787 billion, Yes, with a B, dollar a year industry in the United States alone. There are over 773,000 franchise establishments in the US. This is big business, and it is one of the many ways that entrepreneurs can get their start. For some, they make the brand accessible to others like they create the brand. Think Ray Kroc with McDonald's okay? He didn't necessarily create the brand from the beginning, but he created the franchise. Others start businesses as a franchisee. It's one entryway into business ownership. But how does one even start to explore if franchising is right for them and what business opportunities exist? Well, my guest today is going to help us with that information and more. She is Rebecca Monet. She is the president and chief scientist for Zorakle Profiles, which provides assessment tools for the franchise space. Their SpotOn! science determines franchisee-franchisor compatibility and predicts performance. Doesn't that sound fascinating? I just think it is. She is also the co-founder of The Coterie for Women, an online software platform for women to collaborate, connect and build community. And if that wasn't enough, she's also the publisher of The Franchise Woman magazine, which empowers women from all experiences and perspectives to live richer lives. Rebecca, welcome to the podcast.

I'm so excited to be here with you, Michael.

I'm excited to have you. And I just want to dive into the fact that you're a scientist first and foremost. And that is not a profession dominated by women, sadly, what drew you to science and research?

You know what I think I'm one of those people that has always been endlessly curious, which is the one trait all scientists seem to have. Is this, why why why side of them and curiosity to dissect and look at things? So for me, it kind of goes back to when we first moved from Switzerland, which is where I was born and raised in the US. And I was put into the American schools. And if you don't know anything about Swiss culture, it's it's a fascinating culture, they are a private people, they're all about others. They are about education, knowledge and perfection, and perfect timing, which is why we have the, you know, most on-time trains and, and the best chocolate on the planet, we make the most wonderful watches. But there's a set of values or beliefs that the Swiss people live by, right, which is always do your best to always go to, you know, the highest possible place you can go in terms of learning and growth. So when I was put into the American schools, I was in third grade. And I'm sitting behind a young boy, right my age, and he's falling asleep. Well, the Swiss kids would never fall asleep in school. This is just not what would happen. You're alert, you're excited to be there. You want to learn, you want to excel, it's what you're rewarded for. It's just, I couldn't believe this kid was falling asleep in school and the teacher from the front of the room says to me, of course, I'm barely speaking English, but I kind of understood what she was saying. She says Rebecca- well actually I was Becky back then. But take your book and hit him on the head, on, like to wake him.

Where did you go to school?

So this was a New Jersey, we landed in New Jersey,

Okay, say no more. Now I get it.

It's a mismatch of all kinds of cultures, right? That come to New York and come to New Jersey. And of course, I lived in a little, I call it a mole hole, you know, just a little village and a little country surrounded by mountains. And this was like, foreign to me. But I think the curiosity started then, because I could not imagine not wanting to excel I could not imagine not wanting to learn. And then of course the rest of that few years after that. I'm learning about the culture of America. And that was very different than my own culture. And oftentimes, I felt like a misfit, like I didn't process information the same way it was about status and prestige and what you were wearing and how you looked. And those things just didn't matter. We were in shortfalls in a liter hose. And for goodness sake, you know, we look like farm kids care about those kinds of things. So I think that's what started it. I think it was like, what is going on in their heads, what is going on in my head, that I see the world so differently, and she or he or they see the world differently? And I just wanted to get into their heads to figure out how it was that they thought this way that put me on a path to becoming a behavioral scientist.

Okay, I love that. So a lot of times, right, It is a personal experience that directs us in a certain way. Out of all the things that you could study and research and all the different branches of science, you could explore, what drew you to franchise?

So it's interesting, because I went into the world of therapists, as I became a therapist, and I only worked with business owners. Now this is before the thing we would call a coach back then we would call you a therapist, right? But today, we would call you a coach, and advisor, and you would come alongside entrepreneurs. So I had a practice where I only worked with entrepreneurs and business owners, looking at the gray matter between their ears, and what was preventing them from having the kind of fulfilling life they wanted, and success in their business. And one day, one of my clients said to me, Rebecca, can you teach others in a group situation, what you are teaching me in terms of taking control of conflicting beliefs and strategies and beliefs and, you know, values and all of that stuff? Can you teach others? And I said I think so. So he ended up pulling together 300 independent business owners at that point, there was a handful of franchisees there, but I wasn't familiar with it at the time. Anyway, long story short, it was the first time I spoke in public, I loved it, it was like I had stepped into my gifting somehow. And that opened up a whole 'nother door instead of working with the true entrepreneur, that guy or gal that chooses to risk everything and invent something and create something. Now I was starting to work in larger groups traveling all over the world. Some were franchisees, some were independent business owners, and I started to learn a little bit about franchising. But really, when I started to get fascinated with franchising was when all this travel got to be too much. And by this time, I'm a single mom, and my kids are teenagers. And they were getting a little rowdy, at least one of them was, and I knew I had to stay home a little bit more. And so I went to bed one night, and I prayed. And I said, God, I can't travel like this anymore. I need to be closer to home. What's next? what's next in my life. And I woke up. And I had two words that I woke up to, and it was a business broker. And I didn't know what a business broker was. This is pre-internet days, Michael, pre-internet days.

Like you had to go to the library to look it up.

Well, fortunately, I had one of those thick, yellow pages on top of my refrigerator. So I pulled it down, open it up, looked up what you know, business broker, and sure enough, there were four of them in San Diego County. I called every one of them. And I said, my name is Rebecca Monet. And God told me to call you-

Oh, you said that too?

I did! God told me to call you and I want to learn everything about what you are doing. You don't have to pay me I just want to follow you around and watch what you're doing. And three of them thought I was nuts. And one of them was a franchise broker listed as a business broker, but his specialty was franchising. He created that niche in the late 80s. This was now 1992 or 93. He created that niche. It didn't exist before Howie Bassick doing this. So anyway, he said, Come on down. It was free labor, right? So I went down and followed him around. I introduced him to psychographic assessments. He introduced me to franchising. I was in hog heaven, I gotta tell you because up until this point, I had just been using psychographic sciences to look at an individual like you like me within their own business. One thing that they had created themselves. Now I was able to measure not just what was going on with the business owner and the franchisee, but what was going on with the franchisor because a franchisee operates under an umbrella operates under a system, and depending on how much he or she embraces it will determine how successful they're going to be and how well they fit within that. So for scientists, this was just like cake and eat it to kind of environment because I got the look at the business owner and the franchisee along with a system that was co-creating their success. So I was just happy. I've been in it now since 1993. I think it's a wonderful opportunity to take advantage of the free enterprise system and have the structure and the systems to build your businesses.

Yes, yes. I mean, I feel like my eyeballs are glowing, and I'm lighting up as I'm listening to you. Because it does some fascinating. Tell me what's the problem that your company's Zorakle Profiles helps solve?

So I think there's several problems but the key is always fit. A franchisor has created an operating system, a sales system, a marketing system, a product, and a service that they're taking to the marketplace. If they don't get the right franchisee in that marketplace are all kinds of challenges. They could have the perfect system, they could have a market that has the right kind of end users, and they could even help you find that perfect location in that strip mall. But if they don't have the right franchisee, a franchisee that fits within their culture, a franchisee that shares the values of that franchisor, a franchisee that fits into the stage of growth of that franchise organization. A franchisee that has the skills and the attributes necessary to grow a business. There are all kinds of problems for the franchisor they gave away half of Dallas to a potential franchisee who now struggles not because there's anything wrong with them or anything wrong with the franchise system but because they're not a good fit for some reason or another. So they're damaging their brand equity if they ultimately have a poor performer or poor fitting person in there. They're ultimately having to provide additional support and training to that franchisee if they're not performing they're not feeling comfortable and that situation, so their costs will go up. In the worst-case scenario if it's just a franchisee that's not a good fit, we have to disenfranchise them. We have to ask them to leave, which is the last thing any franchisor wants and that means litigation or forcing them to comply with certain you know systems that we have in place. So it's very damaging to the franchisor to have the wrong franchisee. But for me at Zorakle it's also about the franchisee. I mean we've all been in jobs or situations where we just weren't a good fit and we couldn't perform, it's like wearing a pair of tennis shoes that are too small, right, can't run as fast you're not as comfortable. And so the franchisee wants success they want to provide for their family they want to build an empire they want to leave a legacy, and if they've chosen the wrong franchise system, this is our livelihood at stake. This is our savings at stake. This is Johnny's education at stake. Never mind their self-esteem and everything that goes along with that. So Zorakle is committed to helping the franchisor helping the franchisee helping the franchise broker facilitate that right fit so the franchisor has greater success and the franchisee gets to have the success that they deserve and they want

Yeah, so seeing that you help both sides who typically hires you?

It's the franchisor. It's the franchisor and the franchisor broker. So we are a software as a service that we provide under a license to a franchisor and to a franchise broker. A franchise broker would use it to take a real deep look at you and see who you are, and then it helps them match the prospective franchisee within systems wherein they look like the high performers within that franchise system. The franchisor assess all of their current franchisees and then we separate them into categories of performance and fit. And then at the end, we create what's called a top performer blueprint, where we now know exactly what's causing from a psychographic perspective, success for those franchisees, and also the ones that are struggling, what's causing them to struggle. And then a prospective franchisee takes the same assessment and gets compared, categorically compared side by side with the high performers. And the franchisor gets a report back that says, you know, ding, ding, ding, this is a great one, this one's a great fit. He's he or she's got everything it takes to fit within our culture and our stage of growth, and has the competencies and emotional intelligence necessary to grow that, that business. So it's, it's the franchisor, that that is our client. And then, of course, the brokers.

Yeah. So it's, I see the similarity with how you took the psychographic assessments piece and applied it to a specific industry, because what you're just describing is the same thing, or similar as in a corporate structure, where you do have the high performers take it, so you have a benchmark for your, for your corporation or your marketplace, and then apply that to the hiring assessment. So, which is stuff that I've done in, in my coaching career. So it makes perfect sense out of it. How do you, or do you get involved, if let's say, somebody is kind of on the cusp?

So the assessment does a gap analysis, so you're right, they could be on the cusp, they could be an 83% fit instead of a 90%, fit or above. So if it's on the cusp, the assessment does give a gap analysis to the franchisor. All franchisors have strong support and strong training. The larger franchisors will also have in-field consultants, and coaches that are working directly hands-on with those franchisees. So assuming you are on that cusp, and the franchisor and you decide you still want to move forward, then usually the franchisor will have some mentoring, some coaching that will help in those areas. Now, keep in mind, what we're looking at is two things here, one are you compatible, right? If you're not compatible, you don't fit in that culture, the stage of growth of that franchisor is either too early and you fit better in a later stage franchise organization with greater structure, or vice versa, you're someone that's innovative and creative and out of the box thinking, and you don't want to be pinned down with too many systems, if it's not the right stage of growth, if it's not the right culture if you don't have the right work style or personality. If If you know those are those things that are not aligned with you in terms of values, etc, then the franchisor will usually say you're just not a good fit. It's not you can't change those kinds of things, at least not immediately. But if it's a competency issue, you lacked the sales skills, you lacked the operational skills, the franchisor has phenomenal training and those areas. If their softer skills, which I'm sure you deal a lot with, the emotional and social intelligence skills, leadership, conflict management, team building influence are all of those kinds of things. Those are again, things that can be coached and mentored.

It's important to make a distinction here too, because deciding for some franchisees, right, they may say, this is my ticket to entrepreneurship. I don't have the concept or idea myself, but I believe in this brand, or I'm I want to find something that is a good fit. So the assessment tool may not reveal that they aren't a good fit for a particular brand. But it doesn't mean necessarily that they're not going to succeed as an entrepreneur, they just have to find the right company that's going to be the fit for them.

That's beautifully articulated. We don't want to get discouraged. If we went to this particular franchisor and we're not a good fit, you're going to be a good fit somewhere, which is one of the reasons it is helpful to take an assessment like the Zorakle that helps; now we're the only one kind of in the franchise space that does that kind of matching, and obviously, we're happy to help with that. But you're right. It just doesn't mean it just means that a particular concept is not the right one for you. But there are 4000 different concepts and new ones coming on all the time, you will have something that will be a good fit for you. Now, granted, some people will want to keep their corporate jobs while they're building something. And there are many franchise opportunities where you can do that. Or if it's simply you want to diversify your portfolio, you already have a business and you want to diversify with something else. We've even seen entrepreneurs that have built wonderful businesses that get to that place in their life where they want to simplify a little bit, and they can convert their business into a franchise, they can be pulled into a franchise. Franchisors are always looking for smart entrepreneurs that already put the blood sweat and tears into it, that they can then merge or acquire or pull into their franchise systems, and offload some of those responsibilities that you would have had as an entrepreneur. But there's always something.

Yeah, that's another great way to look at how the franchise industry as a whole could be a good fit. You mentioned 4000 different, you know, types. I'm curious about COVID. What, first of all, what's happened to the industry as a result to have COVID? And what did COVID produce in terms of new, you know, maybe subcategories or regular categories?

So here's what's so fascinating about franchising, and one of the reasons I'm so in love with that. Franchising always does well in a crisis. So the benefit always, we have done more business this last year as franchisors, than years and years. So our lead flow at Zorakle Profiles, meaning the number of assessments or brokers running the number of assessments, the franchisor is running has gone up by 40%. So what's happening is we have individuals who were corporate executives, who are now working remotely, they get to be with their spouses and their kids, and they're starting to question themselves, like, do I want to go back to work? Once everything is back up? Many are questioning themselves. Am I on purpose? Did this, is this as fulfilling as I think, do I want to travel that much? Did I like my co-workers, whatever it is, so it's created this step back, and reflect on your life kind of thing. And all of a sudden, people are looking at businesses like never before. So not only is lead flow up, but the number of franchisors coming in the marketplace is also up, you know, what's the saying? A necessity is a mother of invention. And so we're seeing all kinds of new concepts. The other thing that's fascinating about franchising, and guys, if you haven't studied it, study it. I don't care how entrepreneurial you are, you may become a future franchisor. So it's a market strategy. That's all it is, it's a market strategy is a franchisor has a particular role. The role of the franchisors to create operating systems is to create brand awareness, it's to create efficiency and consistency, and effectiveness. The role of the franchisee is to be the face of the brand, and have relationships with the end users. So you have a true partner there. So what happened, during COVID, is the franchisees could continue to focus on their business and the franchisor was righting the ship. They are now looking for different ways to solve a problem. The franchisee didn't have to solve the problem. The franchisor is solving the problem. So let me give you an example about one of our clients a company called Painting With a Twist. Right? And that is a location-based business. You and I would go in and we would learn how to paint and we'd have sipped on wine and we'd have wonderful conversations and we get instruction. We're building community. But is a location-based business: shut down with COVID right? So all of a sudden Painting With a Twist, our leadership is going okay, what can we do? We can teach classes online, we can have parties online, we can drop ship painting materials directly to our individuals, people are more lonely, people are isolated. Boom, parties went up. Now I'm not just buying one canvas to do a painting with you and our other friends that we've gone to, but I'm buying a six pack now because I can do a class at night, I can- So revenues went up. We're seeing the same in the food and- the franchisor's job is to right the ship and direct the ship and to be one step ahead. The franchisee is to focus on the business. So while many businesses went out of business during COVID, you know, those that were, especially startup entrepreneurs, this was a crazy time. And those of you that continue and have that grit and tenacity, you will be rewarded, Hang in there. But many, you know, like, oh, what the heck Well, how do I deal with this? So franchising, as I said, does beautifully under crises. And, so we're gonna see all kinds of opportunity come out of this new concept that we've never seen before innovative things that are going to come out of this.

That was a great example. I am, it was funny because I was actually at a franchisee this morning before we recorded our podcast, I was at the Stretch Lab. And when you think about COVID, I mean, that's a good idea anyway, right? But I was given this as a gift because I haven't been going to Bikram yoga, the hot yoga because it's been shut down for a long time. And well, I haven't been disciplined enough to keep up with it. So I was given a membership to the Stretch Lab. So somebody else will stretch me. And who doesn't need that now coming up with COVID? Yeah. I, so there's another one right there. What other category trends are you noticing that you think, well, whether or not they're out of COVID, but just ones that are even hot right now?

So you know, that's always a number one question that's hot right now, but it goes back to what you said earlier. It's, it's what's hot for you, right? Because it's, it- won't chase the fads, don't chase those kinds of thing. Chase the trends, go after those kinds of things. But some of the trends, of course, are around fitness and health and well-being. And there's a lot of reason for that. My generation getting older, getting less fit, and needing to get in shape. So and then, of course, younger generations, much more physically fitness minded than ever before. So the physical fitness ones are big. Another really big one is eldercare, again, looking at the baby boomer and their parents and the ages that they are now big generations, you know, we're talking massive amounts of people that have money, and are looking for options in their later years, whether that's at home care. And there are many of those kinds of things, or facilities, including group homes instead of nursing homes and skilled care. Now there are real homes where there are just three or four of you where it has a feeling of being part of a family. So the other thing that's kind of hot right now, is anything that is in grooming beauty, especially for men. So you got high-end grooming salons, where you can get your beard trimmed and get a facial and get a pedicure and all of those things. So men's grooming is taking off. And then anything kind of fashion, or food foreign, is also you're thinking like macaroons as an example, are starting to get some highlight. And then finally another hot trend. And I think this one is going to go for a long, long time is anything in STEM. So anything robotics, engineering, you know, the maths, the sciences for children. So we're computer programming, those kinds of things. We're starting to see some wonderful concepts coming in the marketplace, dealing with STEM-like market niches.

Yeah. That extends so far beyond what we tend to look at first, right? Like when we see the list of some of the biggest franchisors, and it tends to be, you know, quick service meals and things like that. So it's fascinating. And I have to say, encouraging to hear, I'll just categorize it as like the intellectual side of businesses emerging. So somebody is interested in exploring what the franchise industry might be able to do for them and if they you know, and even explore, like, what kind of concept might be something that they're drawn to? Where do they start? What's a good place?

So I always recommend if you're in the early stages, two things, find a good franchise broker that can get to know who you are ideally one that's working with Zorakle. So, so they will also give you an assessment and narrow down those hundreds of opportunities, it's going to be overwhelming if you try to do it on your own, there are too many. And you won't know the criteria to make those decisions. A franchise broker is paid based on a success fee. He or she does not care what business you buy, they are not in any way going to direct you. They are going to care about what's a good fit for you. So enlist a franchise broker, ideally, one that's using either Zorakle or a Zorakle-like a tool to know who you are and where you're going to be fit. That's the number one thing.

Do you have a, what would it be, like, on your website, do you have a listing so by state people can find who brokers are that you work with?

No, I don't. But we work with about 230 brokers, they're all over the world. So if you do go to the website, you could fill out the assessment there and put in there what exactly you're looking for that includes these zip codes where you are. So we're happy to do some matches. But currently, no, it doesn't sort that way. In large part, honestly, because we've become a virtual world. You could have you could be in Des Moines and working with a broker from Tallahassee, and he or she could still help you. There was a date and time- Yeah, there was a day in a time when you worked in a local marketplace. When I first started, you owned a territory. You were a broker in a territory. Nowadays, everything has become virtual thanks to COVID and other things, but you're going to still find a good broker that has territory no matter where.

I love that we've been in lockdown for 15 months, and it never occurred to me, that it would all be virtual. (laughing) Oh, okay. Guess I haven't caught on yet.

(laughing) Welcome to the twenty-first century!

Yeah. Oh, that's awesome. Okay, I also want to talk about it because you help franchisors and franchisees, you know, find a good fit. But you also have other support systems with The Coterie for Women and then the magazine that you started, The Franchise Woman. So what kind of jumpstart started these projects for you?

Oh, my goodness, The Coterie for Women has been part of something, you know, back here for the last 30 years. And back then I called it friendshipping. What's happened since women have become more active in the marketplace and jobs? And, you know, juggling motherhood and juggling businesses. And all of that is we don't have what our great grandparents had, which was women coming together, to knit together, to do quilts together, to cook together, to have conversations together. So we've all become more isolated. COVID hasn't helped. But women in particular are wired to be together, right? We don't even go to the restroom alone if we're out, right? So we are designed to be in a tribe, let's call it. And so this idea of friend shipping was something that I kind of conceived 30 years ago. Now when I say friend shipping, I'm talking about what true friendship is, not Facebook friends, right? I'm talking about loyalty, commitment, being there for one another, having each other's back, and sacrificing. I'm talking about what true friendship is about. Unconditional acceptance, giving feedback, what friendship was designed to be. And I think, because we've been so busy as women and separated now, we don't always have those women. So The Coterie for Women was founded in October. We have about 250 members now. It is a software platform where women come together for discussion groups. We have all kinds of great topics, happy hours, articles, and podcasts, and it's just fascinating to watch what is happening, just these friendships are building. women who've never met face to face and never had a cup of coffee together, literally there for one another building these long-term relationships. Now business is being done too. Don't get me wrong, because these are entrepreneurs. They're business owners. They're franchisees, they're, these are movers and shakers that are part of our group which is growing every day. But that's what The Coterie is. It's a place to come for unconditional love, unconditional acceptance, unconditional support. It's a place to learn. It's a place to contribute. It's a place to belong.

That's great. And to emphasize this, you don't have to be a franchise- a franchisee, to participate. Just any women business owner can come and be part of The Coterie.

That's correct, Michael, yeah. Anyone? You're a woman. You're looking for a tribe. You're welcome.

Yes, and they do have great programs. I've been on when you've had guest speakers. It is it's very quality, quality information and you have content and there you go. Thank you. Tell us about the magazine.

Now The Franchise Woman magazine was a magazine started by Elizabeth Denham. She had never been in franchising. She saw a niche. She created The Franchise Woman magazine, something I thought someone should do years ago because women in business, women in franchising are way under-represented. It's about 30% women to men in franchising, it was even worse when I started back in 1993, it's slowly progressing. And yet, again and again, our research shows women rise to the top and franchising. They frequently are the superstars, the top performers, and women, and franchising fits like hand and glove. It's unbelievable how well women do in the franchise space.

What do you think that is? What do you attribute that to?

I think it's many things. One, women are good at following systems and processes. Women also have a level of empathy and compassion. So they're good at building teams and mentoring teams and managing teams. But they're also good at customer service and, and holding onto a customer. They also seem to be just a little less. They're a little more humble, right, a little more capable of taking instruction, and are more trainable and coachable than men are. And in franchising, that's important because you're following a system. It's you're not doing your own thing. You're following a system. And men are pioneers, and they're, they push the envelope and they break rules. That's kind of how they're wired. And nothing wrong with that, right? But when you're talking franchising, there are rules and there are systems and there are processes, and women just seem to be great at mastering it. And then of course, there's that women do well in partnerships, and they see the franchisor as a partner to them, so they don't have as much need to, it's all about me, kind of thing, and I'm no slam against men, we are all gifted in a different, different way. But again, and again, we see women rise to the top in franchising. So The Franchise Woman magazine, when Elizabeth published it was something I'm like, this should have been done a long time ago. And so I reached out to Elizabeth and I said, What do you need? What introductions can I make for you? Do you need money? Do you need support? What do you need because this needs to be out there? And especially since she had no connections in franchising was new herself. So we became fast friends, absolutely fast friends at that point. And within just a handful of months, I bought her partner out who wasn't quite as committed to this vision. And we are now co-publishers of the magazine and then founded The Coterie together, so she's now been immersed in franchising for about a year and a half. And learning to love it about as much as I do.

Yeah. Ah, that is great. So what makes you excited, what's on the horizon for the next 12 months?

So, um, many things excite me obviously, The Coterie and its continued growth and watching women develop and build friendships. I just warm my heart when I you know, get notes, and I'm part of that. And then in terms of Zorakle and myself, we recently launched what we are calling directly to a consumer platform, which allows prospective franchisees through various affiliates to take the assessment and get those matches and be introduced to franchisors. We at Zorakle have never gone direct to the potential franchisee we've always worked the broker, we've always worked with the core. But we know we're missing a whole lot of people that would consider business ownership if they just had a tool that could help them do some matching and make some introductions. So that's on the horizon. We're hoping to launch that this year,, from a technological perspective, we have everything in place to make that happen.

That is fascinating. People are gonna want to tap into that, for sure. So how can people find you and follow you, Rebecca

So you can find more about Zorak e at Zorakleprofiles.com. Rebec a Monet, like Claude Monet, the painter, you can find me o LinkedIn and of course, also o Facebook.

Thank you so much. I, you shed a lot of light on the franchise industry to ay and just appreciate your time I am fascinated by the work that you do. So thank you for being a guest on the Champions f RISK podcast.

Thanks for having me, Michael.

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