Multiply Your Success with Dr. Tom DuFore

264. The Face of Innovation in Self-Care Franchising—Michele Henry

• Franchise Your Business | BigSkyFranchiseTeam.com

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Are you interested in franchising your business, but wondering when the right time is to do so? Or maybe, you recently franchise and you are faced with some challenges. Our guest today is Michele Henry, and she shares with us her miss of not franchising her first business and her make of inviting the right franchisees into her system. 

TODAY'S WIN-WIN:
Invite the right franchisees to join her system. 

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ABOUT OUR GUEST:
Michele Henry, grew up in a family of entrepreneurs and knew from a young age that she wanted to follow in their footsteps. Following the birth of her third child, Michele struggled to find skincare treatments that addressed the changes in her skin caused by hormonal shifts, age, pregnancies, and life’s demands. This prompted her mission to fill a void in the aesthetics market. From inception, FACE FOUNDRIÉ was designed to be a franchise concept, empowering entrepreneurs to grow + scale their businesses through FACE FOUNDRIÉ’s franchise opportunities. Michele has achieved success, multiple accolades, having been named EY Entrepreneur of the Year + profiled in Forbes. She is a member of Young President Organization (YPO) and serves on the Board of Directors. Michele was recognized on the Minnesota 40 under 40. FACE FOUNDRIÉ also ranked as the 35th fastest-growing private company in the Midwest by Inc Magazine, demonstrating its commitment to growth + innovation.

ABOUT BIG SKY FRANCHISE TEAM:
This episode is powered by Big Sky Franchise Team. If you are ready to talk about franchising your business you can schedule your free, no-obligation, franchise consultation online at: https://bigskyfranchiseteam.com/.

The information provided in this podcast is for informational and educational purposes only and should not be considered financial, legal, or professional advice. Always consult with a qualified professional before making any business decisions. The views and opinions expressed by guests are their own and do not necessarily reflect those of the host, Big Sky Franchise Team, or our affiliates. Additionally, this podcast may feature sponsors or advertisers, but any mention of products or services does not constitute an endorsement. Please do your own research before making any purchasing or business decisions.

Tom DuFore:

Welcome to the Multiply your Success podcast, where each week, we help growth-minded entrepreneurs and franchise leaders take the next step in their expansion journey. I'm your host, tom DuFore, ceo of Big Sky Franchise Team, and as we open today, I'm wondering if you are interested in maybe franchising your business, but wondering when the right time is to do so. Or maybe you recently franchised and you're faced with some challenges. Well, our guest today is Michele Henry, and she shares with us her myths of not franchising with her first business and her make of inviting the right franchisees into her system Now.

Tom DuFore:

Michele grew up in a family of entrepreneurs and knew from a young age that she wanted to follow in their footsteps. Following the birth of her third child, Michele struggled to find skincare treatments that addressed the challenges in her skin caused by hormone shifts, age, pregnancies and life's demands. This prompted her mission to fill a void in the aesthetics market. From inception, face Foundry was designed to be a franchise concept empowering entrepreneurs to grow and scale their business through Faze Foundry's franchise opportunities. Michele has received multiple accolades, having been named Ernst Young's Entrepreneur of the Year and profiled in Forbes. She's a member of the Young President Organization, ypo, and serves on the board of directors, Michele was recognized on the Minnesota 40 Under 40, and Faze Foundry is also ranked as the 35th fastest growing private company in the Midwest by Inc Magazine. You're going to love this interview, so let's go ahead and jump right into it.

Michele Henry:

Happy to be here. Thank you, tom. My name is Michele Henry. I am the founder and CEO of Face Foundry and we are a focused facial bar and the franchisor of now 56 locations across the country.

Tom DuFore:

Wonderful. Well, congratulations on your growth and the expansion you've had, and we always like having franchise guests on to talk about their franchise journey and part of what they've done and our business. We kind of are in this threshold or precipice between an entrepreneur and franchising and kind of teeter-totter between them. I'd love for you to just talk a little bit about your journey to starting your business.

Michele Henry:

Yeah, absolutely. So I'm going to take you way back. I actually grew up in a family business and it was the best education I could have ever had, because I learned a lot about entrepreneurship and what it took and my parents worked super hard. My dad actually still owns that business and I lived it. I breathed it. I worked for him for almost 13 years. It's an in-ground pool company, so learned a ton Fast forward.

Michele Henry:

I ended up starting a clothing company and we grew organically. We ended up servicing about a million women over our tenure and grew it to about 25 million in sales. The day I sold that company, I gave myself five minutes. So I signed the purchase agreement for that company and I had five minutes. I walked downstairs, I signed the lease for the Galleria Face Foundry, which was our flagship location, and I knew whatever I did next, it had to be a franchise, because I absolutely love that model. I love being able to meet really inspired, excited individuals that want to be entrepreneurs, that want that roadmap to success, and that was really important. So I really charted out a path to make sure that we could franchise FaceFoundry from day one. So we wrote down all of our operations. We made sure that we had a really nice roadmap and, oddly enough, we went to go franchise, we had a year's worth of data and it was March 1st 2020. So you can probably guess the timing was impeccable. I'm kidding, that's a joke.

Tom DuFore:

COVID hit. Oh my goodness gracious, wow. Talk about, like you said, timing for your business model. That's incredible. So what'd you do then when you hit the crossroads?

Michele Henry:

Yeah, we had two corporate locations open. The whole idea was to have a proof of concept, so I ideally wanted three locations in different various trade areas. We had to pause. We actually were mandated by the state of Minnesota, like many others, to close down and it ended up being, you know, several months before we could open back up and it was such a guessing game when are we gonna be able to open? In hindsight it was such a blessing in disguise because we kind of reestablished all of our operating manuals, all of our training to be online, so it really was able to catapult us and we were able to jumpstart. When we did launch franchising again, it was very fast and furious. We sold the state out in 30 days. We ended up selling 34 units very quickly in that first year. So blessing in disguise, but hindsight's everything right.

Tom DuFore:

Absolutely, and that's really really rapid growth that you share and with 34 units coming on in one year. One question I'm always curious about is how you manage that, especially as a brand new franchisor. That kind of growth I've seen actually crush franchise systems and obviously that did not happen with you all. So how did you respond to that growth to make sure you could support the franchisees that were coming on board?

Michele Henry:

I think it's with any business, you have to have a really strong team and a strong team that can understand what their role and responsibility is, and that was just very important. We are very fortunate. I think our team is world class. They are such hard workers, they have that kind of small business mentality, they feel a sense of ownership. So I would bring it back to our team is phenomenal, and they understand what growing pains might look like and they help work through as a team to make our system better.

Tom DuFore:

As you launched this business, the plan was to franchise right from the get-go. So I know you mentioned you knew you wanted to franchise, but how did you decide that, or what led you to be so certain that was what you wanted to do?

Michele Henry:

That's a great question, tom. So I touched on this my previous business. It was a women's clothing chain. We grew it debt-free. It was very bootstrapped and we explored franchising with that business model very early on and there was a lot of long conversations Is this the concept to franchise? What are the nuances? And I learned a lot about franchising through that process and understanding. You know, actually this isn't the right concept to franchise. In turn, I think then I really fell in love with the franchising model in general. So I love that I could read FDDs and I started to become obsessed. If there was a franchise concept that caught my eye, I was paging through, you know, nighttime reading 200 pages. Later I'm reading these FDDs and learning what makes a strong concept and what doesn't, and how could I apply this in the future for future businesses. So I think I learned a lot in that process that we eventually didn't pull the trigger on with that model, but it was a learning process for sure.

Tom DuFore:

You definitely are the exception to the rule. It's rare to find entrepreneurs, especially entrepreneurs that are willing to and interested in reading the FDDs and many of them it is not light reading, so kudos to you on making that commitment to do that. That's wonderful. As you've talked about growing your over 50 units and continuing to expand, and you talked about your great team that's in place, will you share a little bit about, maybe some of the types of roles and things that you have your team doing to support the growth of your franchise system, to make sure that those franchisees are not just opening but the goal is that they open and they sustain and hopefully thrive long-term. So talk through that if you wouldn't mind.

Michele Henry:

Yeah, absolutely. I think that our system and the way we operate, we take our franchisees through every single process and meet them where they're at, so I think that's something that's really unique and our ability to go in and work with a franchisee. If they have a marketing background, great, we can build off of that. If they don't, wonderful, let's take a few steps back and let's start the process from you know, square one. Same with build outs. I think it's so important Our head of development actually built out.

Michele Henry:

He worked for SEB brands for a long time, so self-esteem brands, wax in the City. He also built out a lot of caribous. He knows, start to finish, what it takes to open a face foundry and having that person in your corner, especially as a new franchisee, especially if you've never ever built out a retail store before that's a huge asset. And he breaks it down step by step, and so that project management is crucial and I think it just starts you out on the right foot so you can really focus then on your operations.

Michele Henry:

Most people think, okay, they hear face foundry, they hear we're a facial bar.

Michele Henry:

They might assume, okay, I have to be an esthetician or have some sort of skincare background. That's actually not the case. I would say very few of our franchisees come from the aesthetics world, and what's wonderful is we have a great team that teaches our franchisees what to look for when they are hiring, when they are training, when they are doing test outs. All of that is spelled out for them, so you really do leave and feel like you have an honorary degree in aesthetics and you can then jumpstart your business from there. On top of that, I would say what's really unique is we have quarterly coaching conversations where we can come in and help develop your team if they need refreshers on, say, membership, sales or how to approach products. We are trying to touch on every single level, and so marketing is always going that's always in the background. Development is always going that's in the forefront but making sure that, no matter where our franchisees are at, we are able to fill those gaps or areas of opportunities.

Tom DuFore:

You mentioned a word that stood out to me in terms of being unique, and I always like to ask, in terms of your business model, what are some of the things that differentiate your business or make your company unique?

Michele Henry:

Oh, so many, Tom. I would say, first of all, what's really attractive is our price point. I think we surprise and delight clients with the level of service that we offer, knowing that it is an approachable price point. Most people think of going to the spa or getting a facial and they think of that kind of special birthday celebration or once a year celebration and truly, what we've been able to do is disrupt that industry and offer monthly memberships that are very, very price conscious and make sure that we're awarding and really surprising people with our level of services, with our estheticians. So I think that's first and foremost. We offer consistency too. I think that's very important. What we found in our competitor set is that you can go to different spas or facial bars and it's an inconsistent experience, and we've really taken our client journey and broken it down to make sure that if you get a service in Sioux Falls or Sarasota, it's the exact same thing and you know exactly what to expect as a client.

Tom DuFore:

One question I always like to ask every franchisor that comes on the show at this stage is what advice you would give to an emerging franchisor that's launching, that's maybe trying to sell their first 5, 10, 20 franchises. You saw some rapid growth as you first launched. What advice would you give to someone? I?

Michele Henry:

always love this question right, because I think that, looking back you, you can pull so much information as to what you wish you would have done. One thing I feel like I was fortunate to have, from the jump, a fantastic franchise attorney that understands what growth would look like. So having an FDD, that's something that you can understand and that you can answer all of the questions, because you're going to get a lot of them right From potential franchisees. So having amazing counsel is, first and foremost, goes back to that team mentality. Make sure your team is fantastic.

Michele Henry:

On that same note, making sure that you know your numbers, understand your business, and that goes hand in hand. If you are an entrepreneur and you understand your business, you have to know your numbers. That goes hand in hand. If you are an entrepreneur and you understand your business, you have to know your numbers, because the FDD is an open book right, and everybody gets to see your numbers and see where sales come from and see, obviously, at the end of the day, what your net income is. So knowing those numbers are crucial.

Tom DuFore:

I think those are two call-outs how can someone get in touch with you or learn a little bit more about what you're doing, or if they might listen to this say hey, I'm interested.

Michele Henry:

Absolutely so. If you go on the Face Foundry website, foundry is spelled with an I-E at the end, so facefoundrycom there is a franchising tab. You'll be able to flip through our franchising book. You'll be able to see our sites, different locations, we have all of the benefits of being an owner and you will also see a contact page. That's probably the best way to do it.

Tom DuFore:

Well, this is a great time in the show, Michele, and we make a transition and we ask every guest the same four questions before they go.

Michele Henry:

And the first question we ask is have you had a miss or two on your journey and something you learned from it? Yeah, I. Okay, let me I'll touch on a miss that I had very early on. I committed to a new product that I really wanted to push. It was this beautiful Gua Sha stone set and we had to commit to a huge number of them, so flying them over it was very costly and we ended up really missing on that and that product launch just did not take, and I think that was a miss that I learned very early in that process that over committing to too high of a quantity of products can really drown you and it's a capital suck and a time suck.

Michele Henry:

And so beta testing, something on a smaller scale, aim small, miss small. I think that's crucial. And so, keeping that mindset it's hard because, of course, as a entrepreneur and as a dreamer and as a visionary, you want to just, you know take comfort in this idea is going to blow it out of the water, and I think taking a step back, as a entrepreneur and as a dreamer and as a visionary, you want to, just, you know take comfort in this idea is going to blow it out of the water. And I think taking a step back and understanding that you know there's real capital constraints if you, if you aim too big and ultimately time constraints.

Tom DuFore:

Well, let's look at the flip side of this. Let's talk about a highlight, a win or a make that you'd like to share.

Michele Henry:

I would say the make has been inviting brilliant franchisees into our system. I can't give enough credit to the franchisees that have come in and they've come in from other brands or they've owned their own businesses. Either way, they have been instrumental in building FaceFoundry into what it is today. So I definitely think that the make would be the franchisees that we have in FaceFoundry.

Tom DuFore:

Well and you used a really interesting word there the franchisees that you invited into your system and I love that is keeping this focused on an award you're granting or awarding, or allowing folks to come into the system. I think that's the right mindset. Well, let's talk about a multiplier. The name of the show is Multiply your Success. Have you used a multiplier to grow yourself personally, professionally or any of the organizations you've run?

Michele Henry:

You know what? Actually, the multiplier that comes to mind, truthfully, is a group that I'm a part of and I have gained so many mentors through this group, and it's a leadership group that has really challenged me to continue to grow and change my thought process around business in general. So it's called YPO, and I don't know if you've heard of it before, but it's truly changed my life, and the people you surround yourself with and their mentality really does get absorbed into who you become, and I think that's so important to surround yourself with like-minded, positive people, and YPO has done just that for me. So I'm very, very gracious and grateful.

Tom DuFore:

Networking groups, mastermind groups, these leadership groups that like a YPO and there are others out there, and finding the right fit is so critical. I think that's great. Well, Michele, the final question we ask every guest is what does success mean to you?

Michele Henry:

question we ask every guest is what does success mean to you? I would say success to me is how my kids view me. As a mother, as a business owner, as a parent. I think about success and to me it's a synonym for legacy, and the legacy I want to leave behind is, hopefully, inspiring confidence through, obviously, our facial bars, through Face Foundry, being able to build legacies with our franchisees and our staff members, but ultimately being able to build a legacy that my kids are proud of. So I would say they're very much intertwined.

Tom DuFore:

Michele, thank you so much for a fantastic interview and let's go ahead and jump into today's three key takeaways. So takeaway number one is when she talked about when she knew she wanted to franchise and she said she knew she had missed the opportunity with her first company that she started. So when she launched her second business, she came into it with the mindset of franchising right from the get-go. Takeaway number two is when she gave some advice to emerging franchisors and she said find a quality franchise attorney and know your numbers. I thought that was great and, by the way, part of what we do with our company is make sure we refer you and get you connected with some great franchise attorneys as part of the process.

Tom DuFore:

Takeaway number three is what she defined as success and I loved her view of it. She said success is how her kids view her and building a legacy her kids are proud of. And now it's time for today's win-win. So today's win-win is when she said she made sure and this was her make that she made sure she invited the right franchisees to join her system, and I loved how she chose that word invited the right franchisees to join her system. That's a win for her, it's a win for the franchisees as well, because it's the right match for both of them to be pairing up together, and so that's a win for her. It's a win for the franchisees as well, because it's the right match for both of them to be pairing up together, and so that's the episode today.

Tom DuFore:

Folks, please make sure you subscribe to the podcast and give us a review, and remember if you or anyone you know might be ready to franchise their business or take their franchise company to the next level. Please connect with us at bigskyfranchiseteamcom. Thanks for tuning in and we look forward to having you back next week.

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