November 11, 2025 • 26 mins
A facial can be fast, luxurious, and accessible- and still scale nationwide. We sit down with FACE FOUNDRIÉ founder Michele Henry to unpack how an open-air, under-an-hour service became a franchisable engine powered by walk-ins, memberships, and a meticulously designed client journey. From the first location next to a Starbucks to a flagship on Austin’s South Congress, Michele explains why patience in Class A real estate and the right co-tenants can change a brand’s trajectory.
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Episode Transcript
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Michele Henry (00:04):
For us, we have created a roadmap and we call it
our client journey.
And it breaks it down veryspecifically of all of the
checkpoints our estheticians andfront bar and franchisees have
to hit in that journey.
So making sure that everyexperience Brian is greeted,
we're going to make sure that weknow that we're addressing him
(00:25):
by name.
We already know a lot of hispaperwork is done.
Every single checkpoint is key.
Brian Sheehan (00:34):
Welcome to Retail Intel, the podcast dedicated to
spotlighting the mostinnovative and rapidly growing
brands in the retail sector.
I'm your host, Brian Sheehan,and I'm thrilled to guide you
through the dynamic world ofcommercial real estate, where we
explore the latest trends,groundbreaking concepts, and the
(00:54):
stories behind today's mostsuccessful retail businesses.
On this episode, I'm excited towelcome Michele Henry, the
founder of FACE FOUNDRIÉ, afast-growing facial art concept
that's redefining accessibilityand skincare.
Michele's journey began with apersonal need for effective,
flexible skincare solutionsduring a transformative time in
(01:18):
her life.
That needs sparked a vision tocreate a modern, approachable
space for skincare that fitsinto busy lifestyles.
All with same-day bookingoptions.
(01:42):
Michele's mission is clear.
Help people feel good aboutthemselves, because when you
feel good, you do good.
I'm eager to dive into herjourney, the inspiration behind
Face Foundry, and how she'sscaling a brand that's changing
the face of skincare.
Michele, welcome to RetailIntel.
(02:03):
How are you doing?
Michele Henry (02:04):
I am great.
Thank you, Brian, for havingme.
Brian Sheehan (02:07):
Yeah, thanks for being here.
And I'd love to start with yourbackground.
Would you mind talking a littleabout your career journey and
what led you to start FaceFoundry?
Michele Henry (02:17):
Of course.
Well, I'm going to take youway, way back.
I grew up in a family ofentrepreneurs.
My dad actually still is activein the company that he started
in 1991, which was a poolbusiness.
So I got to see very early onwhat it looked like to be a
business owner.
(02:38):
And I loved it.
I was obsessed and I knew rightthen and there when I started
working for my parents at 13,that's what I wanted to do.
I wanted to own my ownbusiness.
So fast forward, I had awomen's clothing chain straight
out of college, which, you know,for better or worse, you kind
of look back and I learned anabsolute ton.
(03:01):
We started that business withmy then business partner at the
time.
We each brought $8,000 becausehello, we were broke college
students.
And we ended up growing itorganically through just a ton
of hard work and perseverance.
And I ended up selling it eightyears later.
And it was the wildest ride.
(03:23):
And I will say that businesstranslates because I sold that
company on December 14th, 2018,at 10:30 a.m.
And at 10:35, I signed thelease for what would become our
flagship location in thegalleria for Face Foundry.
So gave myself five wholeminutes.
(03:44):
It was a wild ride, and Iwouldn't change a thing.
Brian Sheehan (03:48):
You have talked before in kind of other
platforms about your ownskincare challenges and maybe it
was kind of particularly afterhaving kids.
And you know how that inspiredthis concept.
Can you talk more about howthat shaped your brand?
Michele Henry (04:06):
Yeah, it was 2017.
I had just had my third childand I had just crazy hormonal
acne.
And I remember feeling soself-conscious of just going out
there after having a baby.
You know, you're excited toshare her with the world, but
ultimately I just was soinsecure about what I was
(04:28):
battling with my acne problems.
So I looked at a lot ofdifferent brands, different med
spas, how I could try to remedythis.
And I had ended up going tothis med spa close by my house
and was spending small fortunesevery time I would go in
monthly.
And I thought to myself, thereis got to be a more appealing
(04:53):
version of this that is far moreapproachable in price and
ultimately just a betterexperience.
And when I started going downthis path, there was nothing
that existed.
I mean, the idea of facefoundry and this open air
concept, it was so novel and newthat it was hard to almost do
research, right?
Because it just lived in yourbrain.
(05:14):
And so even when I was tryingto explain it to people early
on, it it left them veryconfused.
Like, wait, you're gonna do anopen air concept where people
can come in and get facials andleave after, you know, less than
an hour.
Now, in hindsight, it's likethat's exactly what I needed at
the time.
So I had kind of selfishlycreated it for myself.
(05:36):
But we found that we seecontinuous membership growth.
And it's clearly self-care andwellness is such a huge
component in a big industry thatwe're seeing grow.
It's been really fun to kind ofstart to shape what that looks
like.
Brian Sheehan (05:51):
I stopped into the Austin location maybe about
a month and a half ago, and Iguess I didn't realize how novel
it is to provide walk-ins andsame-day appointments.
And how did you land on thatmodel and why does that work so
well with your customers?
Michele Henry (06:12):
It's funny.
So, you know, looking back, youdon't know what you don't know.
We initially, our firstlocation was next to a
Starbucks.
So there was constantly foottraffic, and we didn't spend any
money on marketing because wehad just a revolving door of
people in front of our storesaying, What is this?
And they'd walk in and it wasokay, we can get you in right
(06:35):
now.
And then we realized, oh mygosh, it was this huge light
bulb moment.
We need to put walk-inswelcome, and that needs to be
part of our strategy when weopen new stores.
So it has been part of what weroll out with our grand openings
ever since then.
And it kind of worked out, itwas definitely happenstance, it
(06:56):
was not planned, but we realizedpeople absolutely need that
ability to walk in, be able tobook a service.
And it is really unexpected,but it's a great way for us to
continue to surprise and delightthe client.
So that's what we kind of aimto do, and we've just continued
to build off that.
Brian Sheehan (07:14):
I love that.
How how big a part of that isyour business as like say a
percentage of sales, the walk-incomponent.
Michele Henry (07:22):
I mean, well, I will say not all of our stores
can handle walk-ins now thatthey're at full capacity.
So it's a good problem to have,right?
There are times where we've hadto take down that sign because
it's almost false advertising.
We can't get people in thatsame day, but we do everything
we can within our schedulingmatrix to try to accommodate.
(07:44):
The lovely part is as wecontinue to grow, and you know,
you've experienced our Austinlocation.
We recently just opened ourTerrytown location, which is
about 10 minutes away, andthat's brand new.
So with having more locations,we can now start to see if
clients want to jump to adifferent spot to be able to get
(08:04):
in to make sure we accommodate.
Brian Sheehan (08:06):
I read that there's a lot of founders,
aspiring entrepreneurs, maybepeople who are interested in,
you know, buying a franchisebusiness.
And I had read that you builtBase Foundry debt-free.
Can you talk about why that'sbeen so important?
And yeah, how did how did youeven arrive at that decision to
(08:28):
not use debt?
Michele Henry (08:29):
I think it stems back to my first concept, right?
Where we didn't have the optionto take out a loan.
It was 2010 and we were rightout of college.
I had literally no materialassets to use really as
leverage.
So it was almost the onlyoption I knew.
And so going into Face Foundry,it's kind of the only path I
(08:53):
had ever really charted wasgoing in, knowing, okay, there's
gonna be a lot of sweat equitydumped into this.
Can I do it?
Do I have the time?
And I did.
Looking back, I definitely seethe pros and cons, right?
Of taking on capital outsidecapital.
And obviously growing faster isone of them.
(09:14):
Although I will say we werereally strategic with the
franchisees we brought inbecause I knew initially I
wanted to franchise.
So bringing in all of thesefranchisees that really believed
in the mission, I think thatwe've been able to grow rather
quickly without having to takeon, you know, any sort of debt.
Brian Sheehan (09:33):
It seems like one, I mean, you're you're
growing in the growth mode.
And you know, one of thechallenges I hear often about
expansion is, you know, how doyou ensure a consistent and high
quality customer experienceacross multiple locations?
So what's your trick?
Michele Henry (09:53):
Oh, that is, I mean, that's the number one
question, right, in franchising,that consistency is key.
For us, we have created aroadmap and we call it our
client journey.
And it breaks it down veryspecifically of all of the
checkpoints our estheticians andfront bar and franchisees have
(10:14):
to hit in that journey.
So making sure that everyexperience Brian is greeted,
we're gonna make sure that weknow that we're addressing him
by name.
We already know a lot of hispaperwork is done.
Every single checkpoint is key.
And so you have the exact sameexperience no matter which
location you're going into.
And you can't really tell thatthere's you know different
(10:37):
ownership.
It really does feel unified.
And I think that client journeyhas been really the north star
of how we look at expansion andhow we do it responsibly to make
sure that our brand isprotected.
Brian Sheehan (10:50):
I think I read your part of your mission
includes providing education,you know, beyond the walls of
the store.
And how do you bring that tolife?
Michele Henry (10:59):
Oh, we are constantly preaching education.
So our output, either throughour operations training or what
we're trying to do with a jointbusiness planning, which we
cater to, we customize for eachfranchisee, and that is hosted
quarterly, free of charge, tomake sure that everything we can
(11:20):
do to set up their team for youknow success is crucial.
We also are educating ourclients, and that happens
bedside, that happens withfollow-up emails.
There's a lot that we push onwith education and innovation.
Brian Sheehan (11:35):
I wanted to talk for a little bit about um growth
and expansion.
Michele Henry (11:39):
Yep.
Brian Sheehan (11:40):
So you currently have 65 locations?
Michele Henry (11:44):
Yep.
Brian Sheehan (11:44):
And on track for 107?
Michele Henry (11:48):
Yes.
Brian Sheehan (11:48):
By the end of 2026?
Michele Henry (11:50):
You did your research.
Good job.
Brian Sheehan (11:53):
Thank you.
Can you talk about some of thespecific challenges that you
have had to overcome in order toachieve that growth?
What have been some of thebiggest?
Michele Henry (12:03):
Oh man, that's a great question.
I would say real estate hasprobably been the biggest
challenge.
And, you know, you have tobreak down challenges, buckets
of ones that you can control anda bucket that you can't
control.
And real estate for us, we arereally picky.
So we are going in class A realestate, which means that it's
(12:27):
highly sought after, and we'recompeting with a lot of national
brands to get that real estate.
With that, you are kind of atthe mercy of something opening
up, a new development, orsomeone leaving.
And I think that has been areal challenge for us to just be
patient, but it's paid off, andI think we remind ourselves of
(12:49):
that every day.
You know, South Congress was afantastic location.
I waited for three years for anunbelievable site to open up.
I never thought I would be onSouth Congress next to the Herme
store, and it happened.
And I do think that locationhas really been paramount in our
brand expanding as fast as ithas.
Brian Sheehan (13:11):
So patience is a big part of the answer.
I mean, you lasered in on alocation that or corridor or
center, galleria, wherever itis, you you knew where you
wanted to be and you werepatient.
Michele Henry (13:26):
I think patience and knowing having brand
standards and not bending.
Being able to say no issomething that it's really hard
to do, especially when you areyou feel like we're on a rocket
ship.
It's like, yes, let's getlocation here and here and here.
But ultimately, you know, youstart to have locations that you
(13:46):
you don't really want in yourportfolio.
And that's for us somethingthat I've really tried to stay
strategic and keep us laserfocused on class A real estate.
And if it's not going to be anamazing fit with co-tenants,
then let's not even entertainit.
Brian Sheehan (14:03):
There's a real, I guess, balance there.
If you're a franchisee, youwant to get open and operating,
and you've committed to doingthat, but at the same time, you
don't want to make a baddecision in terms of real
estate.
Michele Henry (14:15):
Yeah.
And we've found we've gonethrough some real estate
brokers, and I feel like we havegreat partners now in the real
estate division.
But I also then go back tomaking sure that our real estate
partners understand exactlywhat the brand is.
So they aren't just coming inshowcasing one location because
(14:35):
that is the that's the singleworst thing you can do to a new
franchisee stepping into oursystem is let them fall in love
with just one space.
You lose all the leverage.
Brian Sheehan (14:46):
And you're really relying heavily on the brokers
to help educate them, guidethem, hold their hand through
that process.
Michele Henry (14:51):
Yep.
And we lay out a lot of it, uh,what our expectations are to
those brokers.
So again, it's very cohesive.
The messaging, the expectationsare very aligned when we make
that introduction.
Brian Sheehan (15:03):
So let's continue talking about real estate for a
minute.
What's the ideal size andlayout for one of your
locations?
Michele Henry (15:10):
Perfect size, anywhere between 14 to say 1700
square feet.
The lovely part about that sizeis typically we go in and we
view our sites as sisters, nottwins.
And what that means, Brian, isthat we're not your traditional
franchise that is going to makeyou take that site down to the
(15:31):
studs and completely rebuild itso every single location is the
same.
We are going in, we are workingwith the assets that are there.
So right now we've got a reallycute spot that we're helping
our franchisee develop in Lohighin Denver.
It's got a lot of exposedbrick, beautiful flooring.
Let's make it work.
Let's make the space work forthe brand and know that these
(15:57):
sites are sisters, not twins.
So for us, I love the the sweetspot of that 1500 square feet
because oftentimes it's either aretailer that's gone out of
business or a local that's goneout of business, or it's a space
that is carved out and it'sit's pretty small where we can
(16:19):
go slot in to kind of it's likethe afterthought.
Um, so there's been some goodleverage we've been able to work
with, and that seems to satisfyour eight-bed count and exactly
kind of what we want from alayout standpoint.
Brian Sheehan (16:37):
If I remember correctly, South Congress store
is it's kind of an NCAP, but youknow, it's a bit more kind of
walkable urban environment.
So, how do you think aboutinline spaces versus end caps
versus freestanding?
Michele Henry (16:53):
It all depends on the co-tenants and the
walkability.
We share a wall with Lip Lab,which again, same demos.
We the front of the store looksout to Sun Life Organics, one
of our favorite co-tenants.
And exactly their client is ourclient, and it's been really
(17:13):
beneficial.
So it doesn't really for me.
I always like an NCAP.
I mean, who who doesn't likethe corner spot?
But only if it suits the actuallayout that we want.
Our Dallas uptown location is aon a very prominent corner and
it works really well.
Beautiful lighting.
(17:34):
So I'll never turn down a goodcorner space.
Double signage, I could go onand on.
Brian Sheehan (17:40):
I love it.
So you talked about Lip Lab.
I can kind of remember seeingthat store.
Um, what other what cotenantsare you looking for?
What kind of retailenvironments?
I mean, I understand SouthCongress, but are you interested
in you know other kinds ofshopping centers, corridors?
Michele Henry (17:57):
We love being near any sort of
wellness-focused fitnessconcept.
So Pilates or any sort of sweetgreen or salad juice bar, we do
quite well.
We love high-end soft goodsthat has worked well for us,
like uh Reformations across thestreet, and Hermaze is next to
(18:19):
us on South Congress.
But really, I would say goingback to our original flagship
location, being next to thatStarbucks where you are getting
lots of eyes on your brand, andpeople are in and out and
curious.
I think that's been reallybeneficial for us.
Brian Sheehan (18:34):
And what's the kind of target demo core
customer look like?
I mean, I have a sense, but howdo you break it down?
Michele Henry (18:41):
I would say 28 to 48 is typical.
Of course, it depends on thelocation.
It can vary.
In some of our more urbanrings, we're seeing a higher
population of men attending andgetting memberships, which I
think is just I think it'sfantastic.
And I love that there'sconstant interest and there's a
(19:03):
growing need.
And so I think that's somethingthat we're gonna continue to
expand on in the coming yearswith our marketing.
Brian Sheehan (19:11):
How do you think about the breakdown between men
and women?
What's what's kind of thepercentage kind of currently?
Do you see the percentage ofmen growing over time?
Michele Henry (19:21):
We do.
I would say that right now it'sa smaller percentage, but we
definitely see the opportunitythere.
So we've got some funactivations coming up.
Brian Sheehan (19:29):
And what's driving that in the space?
What's driving kind of growthin your business?
I mean, I understand there's itseems like a lot of wellness,
health, focused brands andbusinesses are growing kind of
generally today.
But fitness, for example, kindof goes up and down.
Maybe, you know, specialtyfalls a little bit, but then the
(19:53):
high value, low-cost fitnessoperators are doing really well
and you know, growing quicklynow.
How do you think about kind ofgrowth in this industry?
Michele Henry (20:02):
It's been really fun.
I love the local activationswhere we get to work with other
businesses because to yourpoint, right?
It's our franchisees aretypically that community
notable.
So I think taking a step backand looking at the profile of
our franchisees, what they do isthen they understand exactly
who they want to partner with intheir market.
(20:23):
And that local movement is sucha power play that I feel like
that's something that ourfranchisees that are doing it
really well, they know exactlywhich coffee shop they want to
partner with.
They know exactly which fitnessconcept they want to partner
with.
And a lot of that growth we'reseeing is done face to face on a
(20:43):
really organic level.
Obviously, we we do a lot ofdigital marketing and different
campaigns and nationalactivations, but I do love the
the local angle, is somethingthat it's not always the easiest
to maybe track the metrics, butit is so important for our
brand.
Brian Sheehan (21:01):
Oh, absolutely.
I'm dying to ask you abouteconomics, but I guess both from
kind of the AUV perspective,but also how services and
products break down kind ofinside the business.
Michele Henry (21:18):
Yeah, so I can tell you what I can tell you
from our FTD, which you know.
Sure.
So AUV is just over 800,000 fora location that's been open 12
months or more.
Um, our average build isanywhere between 300 to 600.
So the again, the scalabilityis there, the affordability from
(21:38):
a build-out standpoint isthere.
And for anyone that's listeningand hasn't seen our locations,
they are gorgeous.
I mean, you will walk in, youwon't think that they are done
on the cheap.
Like they are very high-endfeeling, but we've figured out
efficiencies to really tackle.
So making sure that that itemseven was one that we really had
(22:00):
a good grasp on was importantto us.
Products, you know, it variesstore to store, anywhere upwards
of you could get to 15%, 20depending.
And then services, obviously,our focus facials are our main
category, but we have a reallystrong membership base.
Brian Sheehan (22:22):
Go back a second.
So build out.
I guess I'm surprised to hearthat build out would only run
somewhere between 300 to 600,just given kind of what I saw
inside of a store, and youtalked about the efficiencies.
You mentioned item seven.
Can you talk a little bit aboutmore what that means for
somebody that's not familiarwith uh franchising?
Michele Henry (22:43):
Yeah.
Brian Sheehan (22:43):
Kind of generally.
Michele Henry (22:44):
So in the FDD, the franchise disclosure
document, the areas I alwayshone in on, item seven are all
in costs.
So you step into a franchise,not speaking specific for Face
Foundry, but any franchisesystem.
Item seven is going to breakdown your all-in costs.
And that usually includes, youknow, operations training, it
(23:07):
could be up to three monthsworth of operating capital, the
build-out inventory, all of it,everything to get doors open.
And that is going to be yourall-in cost.
And item seven will give you arange.
And we worked with what we hadin South Congress, and the
assets that were there, therewere a lot of assets that we
were able to keep as is, andthen obviously others that we
(23:30):
added in, like the curved wallsthat really elevate the space.
So that's why there's such awide range.
Um, also, we have stores thatare as small as 1100 square feet
and up to 27, 2800 square feet.
So size range also does varypretty substantially.
Brian Sheehan (23:51):
I guess two things.
One, you said there were acouple items that you like to
hone in on on the FTD.
And then also, how has the sizerate?
So the size range has come downa little bit over time, and
what's driving that?
Michele Henry (24:07):
I think overall operating costs, right?
Like we figured out kind of oursweet spot, and we like to be
in some of those smaller uhspaces because we can make them
work for us.
And the in the FDD, you know,the item seven, obviously,
that's what I covered in all incosts.
Item 19 is a breakdown of, andnot all franchisors disclose
(24:31):
item 19, but item 19 is abreakdown of what the AUVs look
like.
Brian Sheehan (24:37):
And how's it broken down in item 19?
How do you break that down?
Michele Henry (24:41):
Uh, we'll do like, you know, services,
products, memberships, all ofthat.
And then typically, and this ishow we break it down in our
FTD, it's length of time that astore has been open.
So you you get some idea ofwhat that kind of what the
runway looks like.
Brian Sheehan (24:59):
Gotcha.
Well, Michele, it's really beena pleasure speaking with you
today.
Thank you for joining me onRetail Intel.
Be sure to check out FaceFoundry in person and on
Instagram at facefoundry.
Michele Henry (25:12):
Thank you for having me.
Brian Sheehan (25:16):
Whether you're an aspiring real estate mogul, a
seasoned pro, or simply curiousabout the places where we shop,
dine, play, and work, thispodcast is your all-access path
to the world of commercial realestate.
Connect with me on LinkedIn.
And if you're interested inbeing a part of the Retail Intel
podcast, send a message tonationalaccounts at
(25:40):
philipsedison.com.
If you want to hear more aboutnew and expanding brands like
FACE FOUNDRIÉ, keep tuning into Retail Intel.
And please subscribe, follow,like, and repost.
Talk to you next time.
For us, we have created a roadmap and we call it
our client journey.
And it breaks it down veryspecifically of all of the
checkpoints our estheticians andfront bar and franchisees have
to hit in that journey.
So making sure that everyexperience Brian is greeted,
we're going to make sure that weknow that we're addressing him
(00:25):
by name.
We already know a lot of hispaperwork is done.
Every single checkpoint is key.
Brian Sheehan (00:34):
Welcome to Retail Intel, the podcast dedicated to
spotlighting the mostinnovative and rapidly growing
brands in the retail sector.
I'm your host, Brian Sheehan,and I'm thrilled to guide you
through the dynamic world ofcommercial real estate, where we
explore the latest trends,groundbreaking concepts, and the
(00:54):
stories behind today's mostsuccessful retail businesses.
On this episode, I'm excited towelcome Michele Henry, the
founder of FACE FOUNDRIÉ, afast-growing facial art concept
that's redefining accessibilityand skincare.
Michele's journey began with apersonal need for effective,
flexible skincare solutionsduring a transformative time in
(01:18):
her life.
That needs sparked a vision tocreate a modern, approachable
space for skincare that fitsinto busy lifestyles.
All with same-day bookingoptions.
(01:42):
Michele's mission is clear.
Help people feel good aboutthemselves, because when you
feel good, you do good.
I'm eager to dive into herjourney, the inspiration behind
Face Foundry, and how she'sscaling a brand that's changing
the face of skincare.
Michele, welcome to RetailIntel.
(02:03):
How are you doing?
Michele Henry (02:04):
I am great.
Thank you, Brian, for havingme.
Brian Sheehan (02:07):
Yeah, thanks for being here.
And I'd love to start with yourbackground.
Would you mind talking a littleabout your career journey and
what led you to start FaceFoundry?
Michele Henry (02:17):
Of course.
Well, I'm going to take youway, way back.
I grew up in a family ofentrepreneurs.
My dad actually still is activein the company that he started
in 1991, which was a poolbusiness.
So I got to see very early onwhat it looked like to be a
business owner.
(02:38):
And I loved it.
I was obsessed and I knew rightthen and there when I started
working for my parents at 13,that's what I wanted to do.
I wanted to own my ownbusiness.
So fast forward, I had awomen's clothing chain straight
out of college, which, you know,for better or worse, you kind
of look back and I learned anabsolute ton.
(03:01):
We started that business withmy then business partner at the
time.
We each brought $8,000 becausehello, we were broke college
students.
And we ended up growing itorganically through just a ton
of hard work and perseverance.
And I ended up selling it eightyears later.
And it was the wildest ride.
(03:23):
And I will say that businesstranslates because I sold that
company on December 14th, 2018,at 10:30 a.m.
And at 10:35, I signed thelease for what would become our
flagship location in thegalleria for Face Foundry.
So gave myself five wholeminutes.
(03:44):
It was a wild ride, and Iwouldn't change a thing.
Brian Sheehan (03:48):
You have talked before in kind of other
platforms about your ownskincare challenges and maybe it
was kind of particularly afterhaving kids.
And you know how that inspiredthis concept.
Can you talk more about howthat shaped your brand?
Michele Henry (04:06):
Yeah, it was 2017.
I had just had my third childand I had just crazy hormonal
acne.
And I remember feeling soself-conscious of just going out
there after having a baby.
You know, you're excited toshare her with the world, but
ultimately I just was soinsecure about what I was
(04:28):
battling with my acne problems.
So I looked at a lot ofdifferent brands, different med
spas, how I could try to remedythis.
And I had ended up going tothis med spa close by my house
and was spending small fortunesevery time I would go in
monthly.
And I thought to myself, thereis got to be a more appealing
(04:53):
version of this that is far moreapproachable in price and
ultimately just a betterexperience.
And when I started going downthis path, there was nothing
that existed.
I mean, the idea of facefoundry and this open air
concept, it was so novel and newthat it was hard to almost do
research, right?
Because it just lived in yourbrain.
(05:14):
And so even when I was tryingto explain it to people early
on, it it left them veryconfused.
Like, wait, you're gonna do anopen air concept where people
can come in and get facials andleave after, you know, less than
an hour.
Now, in hindsight, it's likethat's exactly what I needed at
the time.
So I had kind of selfishlycreated it for myself.
(05:36):
But we found that we seecontinuous membership growth.
And it's clearly self-care andwellness is such a huge
component in a big industry thatwe're seeing grow.
It's been really fun to kind ofstart to shape what that looks
like.
Brian Sheehan (05:51):
I stopped into the Austin location maybe about
a month and a half ago, and Iguess I didn't realize how novel
it is to provide walk-ins andsame-day appointments.
And how did you land on thatmodel and why does that work so
well with your customers?
Michele Henry (06:12):
It's funny.
So, you know, looking back, youdon't know what you don't know.
We initially, our firstlocation was next to a
Starbucks.
So there was constantly foottraffic, and we didn't spend any
money on marketing because wehad just a revolving door of
people in front of our storesaying, What is this?
And they'd walk in and it wasokay, we can get you in right
(06:35):
now.
And then we realized, oh mygosh, it was this huge light
bulb moment.
We need to put walk-inswelcome, and that needs to be
part of our strategy when weopen new stores.
So it has been part of what weroll out with our grand openings
ever since then.
And it kind of worked out, itwas definitely happenstance, it
(06:56):
was not planned, but we realizedpeople absolutely need that
ability to walk in, be able tobook a service.
And it is really unexpected,but it's a great way for us to
continue to surprise and delightthe client.
So that's what we kind of aimto do, and we've just continued
to build off that.
Brian Sheehan (07:14):
I love that.
How how big a part of that isyour business as like say a
percentage of sales, the walk-incomponent.
Michele Henry (07:22):
I mean, well, I will say not all of our stores
can handle walk-ins now thatthey're at full capacity.
So it's a good problem to have,right?
There are times where we've hadto take down that sign because
it's almost false advertising.
We can't get people in thatsame day, but we do everything
we can within our schedulingmatrix to try to accommodate.
(07:44):
The lovely part is as wecontinue to grow, and you know,
you've experienced our Austinlocation.
We recently just opened ourTerrytown location, which is
about 10 minutes away, andthat's brand new.
So with having more locations,we can now start to see if
clients want to jump to adifferent spot to be able to get
(08:04):
in to make sure we accommodate.
Brian Sheehan (08:06):
I read that there's a lot of founders,
aspiring entrepreneurs, maybepeople who are interested in,
you know, buying a franchisebusiness.
And I had read that you builtBase Foundry debt-free.
Can you talk about why that'sbeen so important?
And yeah, how did how did youeven arrive at that decision to
(08:28):
not use debt?
Michele Henry (08:29):
I think it stems back to my first concept, right?
Where we didn't have the optionto take out a loan.
It was 2010 and we were rightout of college.
I had literally no materialassets to use really as
leverage.
So it was almost the onlyoption I knew.
And so going into Face Foundry,it's kind of the only path I
(08:53):
had ever really charted wasgoing in, knowing, okay, there's
gonna be a lot of sweat equitydumped into this.
Can I do it?
Do I have the time?
And I did.
Looking back, I definitely seethe pros and cons, right?
Of taking on capital outsidecapital.
And obviously growing faster isone of them.
(09:14):
Although I will say we werereally strategic with the
franchisees we brought inbecause I knew initially I
wanted to franchise.
So bringing in all of thesefranchisees that really believed
in the mission, I think thatwe've been able to grow rather
quickly without having to takeon, you know, any sort of debt.
Brian Sheehan (09:33):
It seems like one, I mean, you're you're
growing in the growth mode.
And you know, one of thechallenges I hear often about
expansion is, you know, how doyou ensure a consistent and high
quality customer experienceacross multiple locations?
So what's your trick?
Michele Henry (09:53):
Oh, that is, I mean, that's the number one
question, right, in franchising,that consistency is key.
For us, we have created aroadmap and we call it our
client journey.
And it breaks it down veryspecifically of all of the
checkpoints our estheticians andfront bar and franchisees have
(10:14):
to hit in that journey.
So making sure that everyexperience Brian is greeted,
we're gonna make sure that weknow that we're addressing him
by name.
We already know a lot of hispaperwork is done.
Every single checkpoint is key.
And so you have the exact sameexperience no matter which
location you're going into.
And you can't really tell thatthere's you know different
(10:37):
ownership.
It really does feel unified.
And I think that client journeyhas been really the north star
of how we look at expansion andhow we do it responsibly to make
sure that our brand isprotected.
Brian Sheehan (10:50):
I think I read your part of your mission
includes providing education,you know, beyond the walls of
the store.
And how do you bring that tolife?
Michele Henry (10:59):
Oh, we are constantly preaching education.
So our output, either throughour operations training or what
we're trying to do with a jointbusiness planning, which we
cater to, we customize for eachfranchisee, and that is hosted
quarterly, free of charge, tomake sure that everything we can
(11:20):
do to set up their team for youknow success is crucial.
We also are educating ourclients, and that happens
bedside, that happens withfollow-up emails.
There's a lot that we push onwith education and innovation.
Brian Sheehan (11:35):
I wanted to talk for a little bit about um growth
and expansion.
Michele Henry (11:39):
Yep.
Brian Sheehan (11:40):
So you currently have 65 locations?
Michele Henry (11:44):
Yep.
Brian Sheehan (11:44):
And on track for 107?
Michele Henry (11:48):
Yes.
Brian Sheehan (11:48):
By the end of 2026?
Michele Henry (11:50):
You did your research.
Good job.
Brian Sheehan (11:53):
Thank you.
Can you talk about some of thespecific challenges that you
have had to overcome in order toachieve that growth?
What have been some of thebiggest?
Michele Henry (12:03):
Oh man, that's a great question.
I would say real estate hasprobably been the biggest
challenge.
And, you know, you have tobreak down challenges, buckets
of ones that you can control anda bucket that you can't
control.
And real estate for us, we arereally picky.
So we are going in class A realestate, which means that it's
(12:27):
highly sought after, and we'recompeting with a lot of national
brands to get that real estate.
With that, you are kind of atthe mercy of something opening
up, a new development, orsomeone leaving.
And I think that has been areal challenge for us to just be
patient, but it's paid off, andI think we remind ourselves of
(12:49):
that every day.
You know, South Congress was afantastic location.
I waited for three years for anunbelievable site to open up.
I never thought I would be onSouth Congress next to the Herme
store, and it happened.
And I do think that locationhas really been paramount in our
brand expanding as fast as ithas.
Brian Sheehan (13:11):
So patience is a big part of the answer.
I mean, you lasered in on alocation that or corridor or
center, galleria, wherever itis, you you knew where you
wanted to be and you werepatient.
Michele Henry (13:26):
I think patience and knowing having brand
standards and not bending.
Being able to say no issomething that it's really hard
to do, especially when you areyou feel like we're on a rocket
ship.
It's like, yes, let's getlocation here and here and here.
But ultimately, you know, youstart to have locations that you
(13:46):
you don't really want in yourportfolio.
And that's for us somethingthat I've really tried to stay
strategic and keep us laserfocused on class A real estate.
And if it's not going to be anamazing fit with co-tenants,
then let's not even entertainit.
Brian Sheehan (14:03):
There's a real, I guess, balance there.
If you're a franchisee, youwant to get open and operating,
and you've committed to doingthat, but at the same time, you
don't want to make a baddecision in terms of real
estate.
Michele Henry (14:15):
Yeah.
And we've found we've gonethrough some real estate
brokers, and I feel like we havegreat partners now in the real
estate division.
But I also then go back tomaking sure that our real estate
partners understand exactlywhat the brand is.
So they aren't just coming inshowcasing one location because
(14:35):
that is the that's the singleworst thing you can do to a new
franchisee stepping into oursystem is let them fall in love
with just one space.
You lose all the leverage.
Brian Sheehan (14:46):
And you're really relying heavily on the brokers
to help educate them, guidethem, hold their hand through
that process.
Michele Henry (14:51):
Yep.
And we lay out a lot of it, uh,what our expectations are to
those brokers.
So again, it's very cohesive.
The messaging, the expectationsare very aligned when we make
that introduction.
Brian Sheehan (15:03):
So let's continue talking about real estate for a
minute.
What's the ideal size andlayout for one of your
locations?
Michele Henry (15:10):
Perfect size, anywhere between 14 to say 1700
square feet.
The lovely part about that sizeis typically we go in and we
view our sites as sisters, nottwins.
And what that means, Brian, isthat we're not your traditional
franchise that is going to makeyou take that site down to the
(15:31):
studs and completely rebuild itso every single location is the
same.
We are going in, we are workingwith the assets that are there.
So right now we've got a reallycute spot that we're helping
our franchisee develop in Lohighin Denver.
It's got a lot of exposedbrick, beautiful flooring.
Let's make it work.
Let's make the space work forthe brand and know that these
(15:57):
sites are sisters, not twins.
So for us, I love the the sweetspot of that 1500 square feet
because oftentimes it's either aretailer that's gone out of
business or a local that's goneout of business, or it's a space
that is carved out and it'sit's pretty small where we can
(16:19):
go slot in to kind of it's likethe afterthought.
Um, so there's been some goodleverage we've been able to work
with, and that seems to satisfyour eight-bed count and exactly
kind of what we want from alayout standpoint.
Brian Sheehan (16:37):
If I remember correctly, South Congress store
is it's kind of an NCAP, but youknow, it's a bit more kind of
walkable urban environment.
So, how do you think aboutinline spaces versus end caps
versus freestanding?
Michele Henry (16:53):
It all depends on the co-tenants and the
walkability.
We share a wall with Lip Lab,which again, same demos.
We the front of the store looksout to Sun Life Organics, one
of our favorite co-tenants.
And exactly their client is ourclient, and it's been really
(17:13):
beneficial.
So it doesn't really for me.
I always like an NCAP.
I mean, who who doesn't likethe corner spot?
But only if it suits the actuallayout that we want.
Our Dallas uptown location is aon a very prominent corner and
it works really well.
Beautiful lighting.
(17:34):
So I'll never turn down a goodcorner space.
Double signage, I could go onand on.
Brian Sheehan (17:40):
I love it.
So you talked about Lip Lab.
I can kind of remember seeingthat store.
Um, what other what cotenantsare you looking for?
What kind of retailenvironments?
I mean, I understand SouthCongress, but are you interested
in you know other kinds ofshopping centers, corridors?
Michele Henry (17:57):
We love being near any sort of
wellness-focused fitnessconcept.
So Pilates or any sort of sweetgreen or salad juice bar, we do
quite well.
We love high-end soft goodsthat has worked well for us,
like uh Reformations across thestreet, and Hermaze is next to
(18:19):
us on South Congress.
But really, I would say goingback to our original flagship
location, being next to thatStarbucks where you are getting
lots of eyes on your brand, andpeople are in and out and
curious.
I think that's been reallybeneficial for us.
Brian Sheehan (18:34):
And what's the kind of target demo core
customer look like?
I mean, I have a sense, but howdo you break it down?
Michele Henry (18:41):
I would say 28 to 48 is typical.
Of course, it depends on thelocation.
It can vary.
In some of our more urbanrings, we're seeing a higher
population of men attending andgetting memberships, which I
think is just I think it'sfantastic.
And I love that there'sconstant interest and there's a
(19:03):
growing need.
And so I think that's somethingthat we're gonna continue to
expand on in the coming yearswith our marketing.
Brian Sheehan (19:11):
How do you think about the breakdown between men
and women?
What's what's kind of thepercentage kind of currently?
Do you see the percentage ofmen growing over time?
Michele Henry (19:21):
We do.
I would say that right now it'sa smaller percentage, but we
definitely see the opportunitythere.
So we've got some funactivations coming up.
Brian Sheehan (19:29):
And what's driving that in the space?
What's driving kind of growthin your business?
I mean, I understand there's itseems like a lot of wellness,
health, focused brands andbusinesses are growing kind of
generally today.
But fitness, for example, kindof goes up and down.
Maybe, you know, specialtyfalls a little bit, but then the
(19:53):
high value, low-cost fitnessoperators are doing really well
and you know, growing quicklynow.
How do you think about kind ofgrowth in this industry?
Michele Henry (20:02):
It's been really fun.
I love the local activationswhere we get to work with other
businesses because to yourpoint, right?
It's our franchisees aretypically that community
notable.
So I think taking a step backand looking at the profile of
our franchisees, what they do isthen they understand exactly
who they want to partner with intheir market.
(20:23):
And that local movement is sucha power play that I feel like
that's something that ourfranchisees that are doing it
really well, they know exactlywhich coffee shop they want to
partner with.
They know exactly which fitnessconcept they want to partner
with.
And a lot of that growth we'reseeing is done face to face on a
(20:43):
really organic level.
Obviously, we we do a lot ofdigital marketing and different
campaigns and nationalactivations, but I do love the
the local angle, is somethingthat it's not always the easiest
to maybe track the metrics, butit is so important for our
brand.
Brian Sheehan (21:01):
Oh, absolutely.
I'm dying to ask you abouteconomics, but I guess both from
kind of the AUV perspective,but also how services and
products break down kind ofinside the business.
Michele Henry (21:18):
Yeah, so I can tell you what I can tell you
from our FTD, which you know.
Sure.
So AUV is just over 800,000 fora location that's been open 12
months or more.
Um, our average build isanywhere between 300 to 600.
So the again, the scalabilityis there, the affordability from
(21:38):
a build-out standpoint isthere.
And for anyone that's listeningand hasn't seen our locations,
they are gorgeous.
I mean, you will walk in, youwon't think that they are done
on the cheap.
Like they are very high-endfeeling, but we've figured out
efficiencies to really tackle.
So making sure that that itemseven was one that we really had
(22:00):
a good grasp on was importantto us.
Products, you know, it variesstore to store, anywhere upwards
of you could get to 15%, 20depending.
And then services, obviously,our focus facials are our main
category, but we have a reallystrong membership base.
Brian Sheehan (22:22):
Go back a second.
So build out.
I guess I'm surprised to hearthat build out would only run
somewhere between 300 to 600,just given kind of what I saw
inside of a store, and youtalked about the efficiencies.
You mentioned item seven.
Can you talk a little bit aboutmore what that means for
somebody that's not familiarwith uh franchising?
Michele Henry (22:43):
Yeah.
Brian Sheehan (22:43):
Kind of generally.
Michele Henry (22:44):
So in the FDD, the franchise disclosure
document, the areas I alwayshone in on, item seven are all
in costs.
So you step into a franchise,not speaking specific for Face
Foundry, but any franchisesystem.
Item seven is going to breakdown your all-in costs.
And that usually includes, youknow, operations training, it
(23:07):
could be up to three monthsworth of operating capital, the
build-out inventory, all of it,everything to get doors open.
And that is going to be yourall-in cost.
And item seven will give you arange.
And we worked with what we hadin South Congress, and the
assets that were there, therewere a lot of assets that we
were able to keep as is, andthen obviously others that we
(23:30):
added in, like the curved wallsthat really elevate the space.
So that's why there's such awide range.
Um, also, we have stores thatare as small as 1100 square feet
and up to 27, 2800 square feet.
So size range also does varypretty substantially.
Brian Sheehan (23:51):
I guess two things.
One, you said there were acouple items that you like to
hone in on on the FTD.
And then also, how has the sizerate?
So the size range has come downa little bit over time, and
what's driving that?
Michele Henry (24:07):
I think overall operating costs, right?
Like we figured out kind of oursweet spot, and we like to be
in some of those smaller uhspaces because we can make them
work for us.
And the in the FDD, you know,the item seven, obviously,
that's what I covered in all incosts.
Item 19 is a breakdown of, andnot all franchisors disclose
(24:31):
item 19, but item 19 is abreakdown of what the AUVs look
like.
Brian Sheehan (24:37):
And how's it broken down in item 19?
How do you break that down?
Michele Henry (24:41):
Uh, we'll do like, you know, services,
products, memberships, all ofthat.
And then typically, and this ishow we break it down in our
FTD, it's length of time that astore has been open.
So you you get some idea ofwhat that kind of what the
runway looks like.
Brian Sheehan (24:59):
Gotcha.
Well, Michele, it's really beena pleasure speaking with you
today.
Thank you for joining me onRetail Intel.
Be sure to check out FaceFoundry in person and on
Instagram at facefoundry.
Michele Henry (25:12):
Thank you for having me.
Brian Sheehan (25:16):
Whether you're an aspiring real estate mogul, a
seasoned pro, or simply curiousabout the places where we shop,
dine, play, and work, thispodcast is your all-access path
to the world of commercial realestate.
Connect with me on LinkedIn.
And if you're interested inbeing a part of the Retail Intel
podcast, send a message tonationalaccounts at
(25:40):
philipsedison.com.
If you want to hear more aboutnew and expanding brands like
FACE FOUNDRIÉ, keep tuning into Retail Intel.
And please subscribe, follow,like, and repost.
Talk to you next time.
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