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Novus Auto Glass Franchise Cost & Fees

Date of Incorporation: 1972
Franchising Since: 1985
Headquarters: St. Paul, Minnesota

Business Description: Novus Franchising Inc. provides services in high quality automotive glass, commercial and residential glass repair, replacement services, and certain other automotive aftermarket products and services under the name Novus.

Franchise Offer: The franchise offered is for the operation of a retail or mobile business that provides the public with high quality automotive glass, commercial and residential glass repair and replacement services, and certain other automotive aftermarket products and services. Novus also offers an affiliate license to existing automotive related business and automotive related business and non-automotive glass businesses that want to add Novus Glass Repair and Replacement products and services to the products and services they already offer.

Financial Assistance: Depending on the franchisee’s net worth, available collateral, credit history and other credit factors, Novus may finance a portion of the franchisee’s initial investment. This financing is offered to all franchisees who meet Novus' credit standards. In addition, Novus Inc., an affiliate, will lease certain equipment to all new franchisees and to affiliate licensees.

Training and Assistance: Novus will provide an initial training program for up to 2 people. For a stand-alone franchise, either the franchise or the manager must attend and successfully complete the training to our satisfaction within 60 days after signing the Franchise Agreement, and before the franchisee begins operating the Novus business. However, franchisees may defer the glass replacement training until after they open the business, so long as it is taken within 60 days after they complete the glass repair training. The initial training for a Glass Repair or Glass Repair and Replacement franchise covers business and operational methods, promotional techniques, glass repair, other services, service techniques, and related methods of developing the business, and is designed to assist the franchisee in beginning the operations for the Novus franchise. Novus also provides glass repair training for up to two people for an auto affiliate license. After franchisees and/or their manager have successfully completed the required initial training, the franchisor will, for their first Novus stand-alone franchise, make a “fast start” field representative available to franchisees in their APR to provide additional training. The training will consist of up to 2 weeks (but not consecutively) of training for a stand-alone retail location franchise, and 1 week for a stand-alone mobile franchise. Novus also offers webinars for a fee of up to $300 per webinar. The webinars are optional, and all fees and costs for participation must be paid by the franchisee.

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 two 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 (five years for affiliate agreement) with an option to renew under terms offered to other franchisees or licensees acquiring a similar type of franchise or license at the time the franchisee reacquires the franchise or license.

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. There must be at least one full-time employee (who may be the franchisee or the manager) who spends substantially all of his or her working time either performing or marketing glass repair and glass replacement services. At least half of the employees must have successfully completed either the initial training program or a three-day employee technical training program. Franchisees must sell all of the products and services associated with their Novus business that the franchisor requires. Franchisees may not operate any similar or competitive business during the term of the Franchise Agreement or Affiliate or Auto Dealer License Agreement.

Estimated Number of Units: 2,115

Investment Tables:
Initial Investment for a Leased Retail Location
Name of Fee Low High
Initial Franchise Fee $29,995 $29,995
initial Training Fee $15,000 $15,000
Salaries and Expenses for 2 people to Attend Required Training $4,200 $9,000
First Month's Rent $1,000 $4,200
Leasehold Improvements/ Redecoration $2,500 $40,000
Furniture and Fixtures $0 $25,000
Equipment $4,550 $7,500
Tools, Supplies, and Promotional Materials $2,000 $4,000
Exterior Building Signage $5,000 $10,000
Vehicle $0 $50,000
Inventory $0 $5,000
Software Package $2,400 $2,400
Computer Hardware and Other Software $2,000 $2,500
Franchise Identification Package $4,000 $6,000
Initial Advertising Campaign Expenditures $5,000 $10,000
Insurance Premiums $1,500 $5,000
Professional Fees $0 $3,000
Security deposits $0 $3,000
Initial Marketing Setup Package $7,500 $15,000
Call Center Set-up Fee $300 $300
Additional Funds (3 months) $15,000 $22,000
ESTIMATED TOTAL $101,945 $268,895
Initial Investment for a Mobile Franchise
Name of Fee Low High
Initial Franchise Fee $14,995 $14,995
initial Training Fee $10,000 $10,000
Salaries and Expenses for 2 people to Attend Required Training $4,200 $9,000
Equipment $2,275 $5,000
Tools, Supplies, and Promotional Materials $1,000 $4,000
Vehicle $0 $50,000
Inventory $0 $5,000
Software Package $1,200 $1,200
Computer Hardware and Other Software $1,000 $2,500
Franchise Identification Package $2,000 $4,000
Initial Advertising Campaign Expenditures $2,000 $10,000
Insurance Premiums $2,500 $5,000
Professional Fees $0 $3,000
Initial Marketing Setup Package $3,500 $3,500
Call Center Set-up Fee $300 $300
Additional Funds (3 months) $5,000 $12,000
ESTIMATED TOTAL $49,970 $139,495
Initial Investment for an Affiliate Dealer License
Name of Fee Low High
Initial Franchise Fee $7,500 $7,500
initial Training Fee $5,000 $10,000
Salaries and Expenses for 2 people to Attend Required Training $2,100 $8,000
Equipment $1,500 $5,000
Tools, Supplies, and Promotional Materials $1,000 $4,000
Inventory $0 $5,000
Software Package $1,200 $1,200
Computer Hardware and Other Software $0 $2,500
License Identification Package $1,000 $1,000
Building Signage $500 $5,000
Initial Advertising Campaign Expenditures $2,000 $10,000
Insurance Premiums $0 $5,000
Professional Fees $0 $3,000
Web Page Set-up $300 $300
Call Center Set-up Fee $300 $300
Additional Funds (3 months) $500 $10,000
ESTIMATED TOTAL $22,900 $77,800
Other Fees
Type of Fee Amount
Royalty Fees 8% of Gross Revenues from glass repair products and services, from glass replacement products and services, and from any other products and services sold under the Novus name, or the "Minimum Monthly Royalty Fees," whichever is greater.
Local Advertising A minimum of 4% of Gross Revenues (payable to local advertising suppliers) .
Website Maintenance Fees Currently, up to $50 per month.
Speedy Glass License Fee $2,500 per year.
Reimbursement of Audit Costs Dependent upon the costs to the franchisor in conducting an audit of the business records.
State, Regional and National Meetings $0 to $800 for each person attending.
Novus On-Line University Training Fees $3-$5 per course.
Other Training $0-$4,000
Electronic Data and Galaxis Interchange Up to $2 per transaction.
Image Fee Up to $500 per month.
Call Center Fee $25 per month administrative fee, $15 referral fee on in-bound windshield repairs calls and $25 referral fee on in-bound glass replacement calls.
Affiliate License Conversion Fee $22,500 to convert to a stand-alone retail location, and $7,500 to convert to a stand-alone mobile franchise.
Fixed/Mobile Conversion Fee $17,000
Transfer Fee $7,500, which the franchisor reduces to $5,000 if the purchaser is an existing Novus Glass franchisee.
Re-franchise or Re-license Fee $5,000 for a stand-alone fixed location franchise, and $3,000 for others.
APR Modification Fee $2,500
Lease Payments $90 per month for a stand-alone franchise, $45 per month for a stand-alone mobile franchise and $50 per month for an affiliate license.
Monthly Point of Sale Software Package License Fees $180 per month for a stand-alone retail location franchise, $90 per month for a stand-alone mobile unit franchise, and $60 per month for Repair Only franchises.
Late Payment Fees $100 per month or the maximum legal rate allowable in the state where the franchisee’s business is located, whichever is less.
Diagnostic Service Technical Support $99 per month, plus $25 for each vehicle in excess of 5 in a month for which the franchisee receives technical support from the franchisor.
NSF Charge $100
Late Gross Revenues Report Fee $25
Supplier Approval Actual cost incurred by franchisor or $250, whichever is greater.
Novus On-Line University and Training Fees $3-$5 per course.
Auto Glass Safety Council Technician Certification $0 - $99
Participation Fees Up to $1,500 every two years if you fail to obtain 150 continuing participation credits (“CPCs”) as outlined in the Operations Manual.

The above information has been taken from the FDD of Novus Auto Glass. Year of FDD: 2016

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