Novus Glass Franchise Costs, Fees & FDD

Year Business Began: 1972

Franchising Since: 1985

Headquarters: St. Paul, Minnesota

Estimated Number of Units: 1,000

Franchise Description: Novus Franchising 2 LLC is the franchisor. 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 under the name “Novus.”
Training Overview: The franchisor will provide an initial training program for up to two people. Either franchisees or their manager must attend and successfully complete the training to the franchisor’s satisfaction within 60 days after they sign the Franchise Agreement, and before they begin operating their Novus business. The initial training covers business and operational methods, promotional techniques, glass repair, glass replacement, other services, service techniques, and related methods of developing the business, and is designed to assist franchisees in beginning the operations for their Novus franchise. After franchisees and/or their manager have successfully completed the required initial training, the franchisor will, for the first Novus franchise, make a “fast start” field representative available to franchisees in their area of primary responsibility to provide additional training. The training will consist of up to two weeks (but not consecutively) of training for a retail location franchise, and one week for a mobile franchise. In addition, at the franchisee’s request, the franchisor will provide additional telephone advice during the first 60 days after training is completed. For the first Franchise Agreement, within two months after franchisees begin operating, the franchisor will send a member of its training staff to the franchisee’s market to provide approximately one week of in-the field training. Franchisees, their manager and/or their employees must, at their expense, attend and successfully complete all additional or advanced training programs that apply to their franchise.

Territory Granted: When franchisees sign a Franchise Agreement, they will receive the right to operate one Novus business within a territory the franchisor designates and describes in their Franchise Agreement. While there is no minimum size for the territory, the franchisor uses mapping software and vehicle data from a third party source to determine the territory, which will consist of one or more zip codes, or partial zip codes. Typically, the territory the franchisor designates will include approximately 120,000 vehicles or more. However, the exact size may also depend upon various factors including demographics, geographic area, natural boundaries and access to streets and highways, neighborhood character, location and number of competing businesses (including existing Novus franchisees and licensees), site availability, and other factors. As long as franchisees are in compliance with their Franchise Agreement, the franchisor will not operate, or grant to any third party any right, franchise or license to operate another glass repair and/or glass replacement business, including a mobile business, using the marks within the territory.

Obligations and Restrictions: Franchisees 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. If the franchisee is an entity, like a corporation or limited liability company, all individuals with a direct or indirect ownership interest in the franchise that the franchisor designates must also sign a personal guaranty of the obligations of the franchisee. Franchisees and their manager must attend and successfully complete any required initial training programs for their franchise before managing or operating their Novus business. At least half of the employees must have successfully completed either the initial training program or a three-day employee technical training program. Franchisees may not operate any similar or competitive business during the term of the Franchise Agreement. Franchisees must sell all of the products and services associated with the Novus business that the franchisor requires. If franchisees enter into one of the NAPA Co-Location Addenda with the franchisor, they will be permitted to offer other non-competitive goods and/or services from the shared facility in which they operate their Novus business, as well as other related businesses. Franchisees must achieve quarterly minimum gross revenue requirements to maintain their franchise rights.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years (10-year term under the Franchise Agreement is reduced to a five-year term if the franchisee signs either the ProColor Amendment or the NAPA Co-Location Addendum). Franchisees have the option to renew under the terms offered to other franchisees by acquiring a similar type of franchise at the time they reacquire the franchise, if requirements are met.

Financial Assistance: Currently, the franchisor will lease vehicles to all franchisees for use in their Novus businesses and Novus 2, an affiliate of the franchisor, will lease certain equipment to all new franchisees. Except as set forth above, the franchisor and its affiliates do not provide any direct or indirect financing to franchisees. Novus and Novus 2 do not guaranty a franchisee’s notes, leases or other obligations.

Estimated Initial Investment

Leased Retail Location

Name of Fee	Low	High
Initial Franchise Fee	$10,500	$10,500
Initial Training Fee	$14,000	$14,000
Salaries and Expenses for Two Persons to Attend Required Training	$3,000	$9,000
First Month’s Rent	$1,000	$4,200
Leasehold Improvements / Redecoration	$2,500	$40,000
Furniture and Fixtures	$0	$25,000
Exterior Building Signage	$5,000	$10,000
Vehicle	$3,800	$50,000
Vehicle Shipping or Delivery Fee	$0	$1,700
Equipment Packages	$13,500	$25,500
Additional Tools and Supplies	$1,000	$2,500
Inventory and Supplies	$0	$10,000
Software Package	$3,000	$3,000
Calibration Package	$0	$11,990
Franchise Identification Package	$2,700	$4,200
Initial Marketing Start-up Package	$7,000	$7,000
Initial Advertising Campaign Expenditures	$0	$5,000
Insurance Premiums	$6,000	$10,000
Professional Fees	$0	$3,000
Security Deposits	$0	$3,000
Additional Funds (3 months)	$17,000	$35,000
ESTIMATED TOTAL	$90,000	$284,590

Mobile Franchise

Name of Fee	Low	High
Initial Franchise Fee	$10,500	$10,500
Initial Training Fee	$14,000	$14,000
Salaries and Expenses for Two Persons to Attend Required Training	$3,000	$9,000
Vehicle	$3,800	$50,000
Vehicle Shipping or Delivery Fee	$0	$1,700
Equipment Packages	$13,500	$13,500
Additional Tools and Supplies	$1,000	$2,500
Inventory and Supplies	$0	$5,000
Software Package	$3,000	$3,000
Calibration Package	$0	$11,990
Franchise Identification Package and Signage	$2,700	$4,200
Initial Marketing Start-Up Package	$7,000	$7,000
Initial Advertising Campaign Expenditures	$0	$5,000
Insurance Premiums	$6,000	$10,000
Professional Fees	$0	$3,000
Additional Funds (3 months)	$5,000	$19,000
ESTIMATED TOTAL	$69,500	$169,390

Other Fees

Type of Fee	Amount
Royalty Fees	6% of gross revenues from all products and services franchisees sell in their business, or the minimum monthly royalty fees, whichever is greater.
Marketing Contributions	2% of gross revenues from all products and services franchisees sell in their business.
Local Advertising	A minimum of 4% of gross revenues.
Vehicle Lease Payments	$1,300 to $1,600 per month.
Vehicle Shipping or Delivery Fees	$800 to $1,700
Vehicle Maintenance (if vehicle leased from the franchisor)	Actual costs.
Fees and Costs Relating to Defaults Under Vehicle Lease Agreement	Will vary under the circumstances.
Fees Relating to Unpaid Fines or Unremoved Liens or Encumbrances Under Vehicle Lease Agreement	Will vary under the circumstances.
Website Fees	There is no regular maintenance fee, but franchisees must pay the programming costs for custom changes to their web page.
Email Fees	Each email address will be available for $6.30 per month. If franchisees would like an email address with Office 365 Web, the cost will be $8.82 per month. For an email address with both Office 365 Web and Microsoft Teams, the cost will be $9.18 per month.
Reimbursement of Audit Costs	Actual costs the franchisor incurs in conducting an audit of the franchisee’s business records.
State, Regional and National Meetings	$1,000 to $1,500 for each person attending.
Other Training	$0 to $5,000
NOVUS Success Team	Up to $1,000 per week, plus travel expenses.
Electronic Data Interchange	Up to $2.00 per transaction.
Branding Non-Compliance Fee	Up to $500 per month.
TAG Network Fees	Franchisees must use any claims referral services the franchisor designates. The franchisor currently requires franchisees to use the TAG Network, operated by an affiliate of the franchisor. There is an initial fee of $300 franchisees will pay when they start receiving referrals from the TAG Network. There are additional fees for referrals. The current maximum fees are $15 referral fee for booked windshield repair jobs and $25 referral fee on booked glass replacement jobs.
Fixed/Mobile Conversion Fee	$250
Transfer Fee	$7,500, which the franchisor reduces to $5,000 if the purchaser is an existing Novus Glass franchisee.
Re-Franchise Fee	$4,000 (reduced to $2,500 if franchisees sign the 5-Year NAPA Co-Location Addendum).
Territory Modification Fee	$2,500
Monthly Point-of-Sale Software Package License Fees	$300 to $350 per month (includes 5 user licenses).
Shop Onboarding Fee	$300 to $350 per location.
Yearly NAGS License Fees	$700 to $950 per user per year.
Liquidated Damages	See FDD.
Interest on Late Payments	Lesser of 1.5% per month or highest rate of interest allowed by applicable law.
NSF Charge	$100 (subject to state law).
Late Gross Revenues Report Fee	$100
Supplier Approval	Actual cost incurred by franchisor or $250, whichever is greater.

The above information has been compiled from the FDD of Novus Auto Glass. Year of FDD: 2025.
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