Novus
Date of Incorporation: December 1993
Franchising Since: December 1993
Address: Minnesota
Country: USA
Description: Novus Franchising Inc. provides services in high quality automotive glass, commercial and residential glass repair, replacement services, and certain other automotive after market products and services under the name Novus®.
Franchise Offer: Novus offers three types of franchise:
i) Novus® Glass Repair and Replacement offers the operation of a retail or mobile business providing glass repair and replacement products and services.
ii) Novus® Glass Repair provides the repair (but not replacement) of products and services.
iii) Affiliate Novus® Glass Repair and Replacement offers a license to existing automotive related businesses or glass businesses to add Novus Glass Repair and Replacement products and services to the products and services they already offer.
Financial Assistance: Novus does not offer any financing programs. Its affiliate Novus Inc., does lease certain glass repair equipment to the franchisee.
Training and Assistance: Training for Novus Glass Repair comprises of 22 hours of classroom training and 72 hours on the job training. The classroom training is held at the offices in Minneapolis, Minnesota and on the job training for the Novus Glass Replacement is held at the Regional Training Center (Morven, NC or Sheridan, WY).
Territory: An area of primary responsibility (APR), generally consisting of one or more counties, will be designated to the franchisee. No other Novus retail franchise will be located within 2 miles of this area. Mobile franchise units or affiliates will not receive an exclusive territory.
Term of Agreement and Renewal: The term of the franchise agreement is for 10 years with an option to renew under terms offered to other franchisees at the time. The franchisee must give 210 days notice of renewal, and satisfy all the material requirements of the current Franchise Agreement.
Obligations and Restrictions: The franchisee must devote full time and best efforts, or have a manager devote his or her full time and best efforts to the operation of the Novus® business. The franchisee and manager must attend and successfully complete the initial training program.
Total Number of Units: 246 franchised outlets at the end of the year 2007
Investment Table:
Initial Investment:
| Name of fee | Low | High |
|---|---|---|
| Initial Fee | $7,500 | $7,500 |
| Initial Training Fee | $7,000 | $7,000 |
| Salaries and expenses for 2 persons to attend required training | $4,200 | $9,000 |
| First month’s rent | $1,040 | $4,170 |
| Leasehold Improvements/ Redecoration | $0 | $40,000 |
| Furniture and Fixtures | $0 | $25,000 |
| Equipment | $1,800 | $5,000 |
| Tools, Supplies, and Promotional Materials | $500 | $2,100 |
| Exterior Building Signage | $4,000 | $10,000 |
| Vehicle | $0 | $40,000 |
| Inventory | $0 | $5,000 |
| Software Package | $900 | $1,350 |
| Computer Hardware and other Software | $0 | $2,000 |
| Franchise Identification Package | $1,200 | $1,200 |
| Initial Advertising Campaign Expenditures | $2,000 | $10,000 |
| Insurance Premiums | $3,000 | $5,000 |
| Attorneys Fees | $0 | $3,000 |
| Security Deposits | $0 | $3,000 |
| Additional Funds (3 months) | $15,000 | $20,000 |
| Total | $48,140 | $200,320 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee |
8% of Gross Revenues from repair products and services, 5% of Gross Revenues from replacement products and services and 5% of Gross Revenues from any other products and services under the Novus® name |
| Local Advertising | 4% of Gross Revenue |
| State, Regional and National Meetings | $0- to $4200 for each person attending. |
| Novus On-Line University Training Fees | $3-$5 per course. |
| Other Training | $0-$4000 |
| Electronic Data Interchange | $0.75 per transaction. |
| Audit Fee | Dependent upon the costs incurred in conducting an audit of the business records. |
| Transfer Fee | $2,500 for a stand franchise |
| Re-franchise or Re-license fee | $2,500 |
| APR or Service Area fee | $1,500 |
| Lease payments | $45 per month |
| Annual Point-Sale software package | $900-$1,000 per year |
| Windshields.com participation fee | Currently, one time $5 activation fee, plus $5.99 for each glass repair referral, and $19.99 for each glass replacement referral. |
| Interest charges | 1 ½% per month interest or the maximum legal rate allowable, whichever is less. |
| Supplier Approval | Actual cost incurred |
The above information has been taken from the UFOC/FDD of Novus Franchising Inc.
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