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What is The Actual Cost of A Novus Glass Franchise?
According to Linchpin SEO, less than 20% of American households may seek an auto repair service more than once a year. With that number in mind, car auto repair services have become crucial in helping maintain every aspect of your vehicle. But what most may overlook is the repair of windshields in cars. Fortunately, there are companies like Novus Glass that offer franchising opportunities for interested franchisees.
How much then does a Novus Glass franchise cost, and what should you expect when franchising one?
Novus Glass Franchise Overview
Novus Glass was born in 1972 after its founder, Dr. Frank Werner, realized the cost of replacing windshields. It wasn’t until 1985 when Novus Glass made its mark publicly, as more people had access to affordable windshield repair.
According to Novus Glass, there are more than 1300 locations in 30 countries.
Here are the services that Novus Glass provides:
- Windshield repair and replacement
- Commercial and residential glass
- Windshield treatment
- Headlight restoration
- Mirror replacement
- Tinting
- Wiper replacement
They also offer these products:
- NOVUS Plastic Polish
- Glass cleaner
Training for A Novus Glass Franchise
The franchisor has an initial training program, allowing two people to attend it. It can be the owner or a designated manager. It should be completed 60 days upon signing the Franchise Agreement (FA) and before opening the franchise.
The training covers the following topics:
- Business and operations
- Promotional techniques
- Glass repair and replacement
- Other services
At their discretion, the franchisor could replace classroom training with on-the-job training. In that case, the on-the-job training would be conducted in a retail location.
Once the franchisee completes initial training, a fast start representative may conduct additional training. This might take up to two weeks for the retail location, but one week for a mobile one.
In instances where franchisees may need more training or advice, they could call the franchisor within 60 days of training completion. Based on the first FA, a member of the training staff will evaluate the franchise’s market and conduct on-the-field training.
In the event of additional training, franchisees or their employees may attend any training, and they will shoulder the cost of training.
Novus Glass Territory
For franchisees of Novus Glass, the franchisor will grant them an Area of Primary Responsibility (APR). It’s the location that covers a zip code or more. Aside from that, it’s also a non-exclusive territory. However, franchisees may only do business inside the APR.
Those looking to establish a retail location franchise, no other retail locations may operate one within two miles of a nearby store. Meanwhile, those who will have a mobile location may operate one within two miles of a nearby store. But mobile locations won’t have an exclusive site.
Obligations and Terms of Agreement
The franchisor expects the owner or a manager to dedicate their time to operate the business full time. Franchisees are not allowed to run a similar business.
If, in any case, the franchisee is an entity, the owners should sign a guaranty. Aside from that, the franchisor requires the franchisee and the manager should complete their training before opening the Novus Glass franchise. Half of their staff should complete the training courses or the three-day technical training course.
The franchisor requires franchisees to sell only approved goods and services. Plus, the franchisee should meet the quarterly revenue quota to keep their rights in operating the franchise.
The initial franchise term for all franchisees is ten years. Renewal is possible based on several arrangements.
Novus Glass Franchise Cost
The affiliate, Novus 2, will lease equipment to the franchisee; this will be ten years– based on the longevity of the FA. Unfortunately, there are no direct or indirect financing options for franchisees. There’s also no guaranty of notes and obligations from Novus and Novus 2.
Check out the breakdown of costs below.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,500 | $10,500 |
| Initial Training Fee | $14,000 | $14,000 |
| 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 Packages | $10,000 | $23,500 |
| Exterior Building Signage | $5,000 | $10,000 |
| Vehicle | $0 | $50,000 |
| Inventory and Supplies | $0 | $10,000 |
| Software Package | $1,500 | $1,500 |
| Calibration Package | $0 | $11,990 |
| Franchise Identification Package | $3,000 | $3,000 |
| Initial Marketing Start-up Package | $5,000 | $5,000 |
| Initial Advertising Campaign Expenditures | $0 | $5,000 |
| Insurance Premiums | $2,500 | $5,000 |
| Professional Fees | $0 | $3,000 |
| Security Deposits | $0 | $3,000 |
| Additional Funds (3 months) | $17,000 | $28,000 |
| ESTIMATED TOTAL | $76,000 | $264,190 |
Other Costs
| 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. |
| Website Fees | There is no regular maintenance fee but franchisees must pay the programming costs for custom changes to their web page. |
| Reimbursement of Audit Costs | Dependent upon the costs to the franchisor in conducting an audit of the franchisee’s 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 Interchange | Up to $2 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 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 or Re-license Fee | $4,000 |
| APR Modification Fee | $2,500 |
| Lease Payments | $50 per month. |
| Monthly Point of Sale Software Package License Fees | $83.95 per month per license. |
| 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. |
Did You Know?
- In 2020, Novus Glass made it to Entrepreneur’s Global Franchise List. They were ranked #21. However, for 2021, they’re #1 for Auto Glass, #4 automotive franchise, and #140 for the Top 500.
- Aside from that, they were in the Top 50 Franchise in the Franchise Business Review.
- They’ve done some charity work and contributed to causes such as Ronald McDonald House, Feed Spokane, and the White Rock Fire Fighters Charity Association.
- Veterans are welcome to franchise Novus.
Ready to franchise Novus Glass? Here’s how to get started.
For information about other franchises, check out Franchise How!