Novus Glass Franchise Cost & Fees

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Description

Year Business Began: 1972 Franchising Since: 1985Headquarters: St. Paul, Minnesota Estimated Number of Units: 2,000Franchise Description: Novus Franchising Inc. 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 2 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 theirNovus franchise. The franchisor may substitute on-the-job training for some of the classroom training. If the franchisor does, the additional on-the-job training would likely be at the franchisee’s retail location. 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 2 weeks (but not consecutively) of training for a retail location franchise, and 1 week for a mobile franchise. 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, and franchisees must pay the franchisor its then-current training fee for this training. Territory Granted: When franchisees sign a Franchise Agreement, the franchisor will designate an Area of Primary Responsibility (APR) for their business. The APR is a geographically contiguous area generally consisting of one or more zip codes. The APR is non-exclusive and may be defined in a map or addendum attached to the Franchise Agreement. Franchisees may sell the products and services associated with their Novus business anywhere in the APR, but they do not have the right to conduct business outside the APR or solicit business outside the APR. In the case of a retail location franchise, the franchisor will not establish another Novus retail location franchise, or allow an existing Novus retail location to relocate, within 2 miles of the retail location. However, the franchisor does have the right to place another Novus mobile franchise within 2 miles of the retail location. If franchisees operate a mobile franchise, they will not receive an exclusive 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, the principal owners must also sign a personal guaranty of the obligations of the franchisee. Franchisees and their manager must attend and successfully complete the initial training program. At least half of the employees must have successfully completed either the initial training program or a 3-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. Franchisees must sell all of the products and services associated with the Novus business that the franchisor requires.Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the option to renew under the terms offered to other franchisees acquiring a similar type of franchise at the time they reacquires the franchise, if requirements are met.Financial Assistance: Depending on the franchisee’s net worth, available collateral, credit history and other credit factors, the franchisor may finance a portion of the franchisee’s initial investment. In addition, Novus 2, an affiliate of the franchisor, will lease certain equipment to all new franchisees. Investment Tables: Estimated Initial Investment for a Leased Retail Location Name of Fee Low High Initial Franchise Fee $7,500 $7,500 initial Training Fee $12,500 $12,500 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, Accompanying Equipment Package, and Calibration Equipment $5,200 $21,899 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 $1,500 $1,500 Computer Hardware and Other Software $1,000 $2,000 Franchise Identification Package $3,000 $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 $2,000 $2,000 Call Center Set-up Fee $300 $300 Additional Funds (3 months) $17,000 $28,000 ESTIMATED TOTAL $71,200 $249,899 Estimated Initial Investment for a Mobile Franchise Name of Fee Low High Initial Franchise Fee $7,500 $7,500 initial Training Fee $12,500 $12,500 Salaries and Expenses for 2 people to Attend Required Training $4,200 $9,000 Equipment and Accompanying Equipment Package $2,700 $5,500 Tools, Supplies, and Promotional Materials $1,000 $4,000 Vehicle $0 $50,000 Inventory $0 $5,000 Software Package $1,500 $1,500 Computer Hardware and Other Software $1,000 $2,000 Franchise Identification Package and Signage $3,000 $6,000 Initial Advertising Campaign Expenditures $3,000 $10,000 Insurance Premiums $2,500 $5,000 Professional Fees $0 $3,000 Initial Marketing Setup Package $2,000 $2,000 Call Center Set-up Fee $300 $300 Additional Funds (3 months) $5,000 $12,000 ESTIMATED TOTAL $46,200 $135,300 Other Fees Type of Fee Amount Royalty Fees 6% 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. Marketing Contributions2% of Gross Revenues from all products and services franchisees sell in their business. 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. Other Training $0 – $5,000 NOVUS Success Team Up to $1,000 per week, plus travel expenses 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 for booked windshield repair jobs and $25 referral fee on booked glass replacement jobs. Participation Fees Up to $1,500 every two years if franchisees fail to obtain 150 continuing participation credits (CPCs) as outlined in the Operations Manual. Fixed/Mobile Conversion Fee $1,000 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 $4,000 APR Modification Fee $2,500 Lease Payments $50 per month Monthly Point of Sale Software Package License Fees $125 per month, reduced to $60 per month for Repair Only franchise. 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. NSF Charge $100 Late Gross Revenues Report Fee $25 Supplier Approval Actual cost incurred by franchisor or $250, whichever is greater. The above information has been taken from the FDD of Novus Auto Glass. Year of FDD: 2018Franchise Direct’s Disclaimer

Estimated Initial Investment for a Mobile Franchise
Name of Fee Low High
Initial Franchise Fee $7,500 $7,500
initial Training Fee $12,500 $12,500
Salaries and Expenses for 2 people to Attend Required Training $4,200 $9,000
Equipment and Accompanying Equipment Package $2,700 $5,500
Tools, Supplies, and Promotional Materials $1,000 $4,000
Vehicle $0 $50,000
Inventory $0 $5,000
Software Package $1,500 $1,500
Computer Hardware and Other Software $1,000 $2,000
Franchise Identification Package and Signage $3,000 $6,000
Initial Advertising Campaign Expenditures $3,000 $10,000
Insurance Premiums $2,500 $5,000
Professional Fees $0 $3,000
Initial Marketing Setup Package $2,000 $2,000
Call Center Set-up Fee $300 $300
Additional Funds (3 months) $5,000 $12,000
ESTIMATED TOTAL $46,200 $135,300