Novus Glass Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$69,500 - $284,590
Total US Locations
128
Business Summary
Novus Franchising 2 LLC operates retail locations or mobile businesses that provide high-quality automotive glass, commercial, and residential glass repair and replacement services. Novus also offers other automotive after-market products and services to the public.
Corporate History
Novus Franchising 2 LLC was organized in Delaware in April 2017. In May 2017, it acquired the operating assets of the Novus Glass franchise system from its predecessor, Novus Franchising, Inc. (NFI). NFI had been operating and franchising Novus Glass businesses since December 1993. Simultaneously, Novus Franchising 2 LLC's parent company acquired all trademarks, copyrights, and patents for the Novus Glass system from NFI's parent company. Novus Franchising 2 LLC began offering Novus franchises in July 2017.
Financial Overview
Investment Range
$69,500 - $284,590
Franchise Fee (High)
$10,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$14,500
Equipment Costs (High)
$114,990
Working Capital
$26,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Novus Franchising 2 LLC's financial statements indicate that in 2024, the company had positive working capital of $29,236 and reported a net income of $799,994. This is an improvement from 2023, where the company experienced negative working capital of $653,664, despite reporting a net income of $1,195,667. The independent auditors have provided an unqualified opinion for both 2023 and 2024, signifying that the financial statements fairly present the company's financial position without any concerns about its ability to continue operations.
Financing Details
Novus Franchising 2 LLC primarily offers indirect financing to franchisees through a vehicle leasing program and an equipment leasing program with an affiliate. Franchisees must lease all vehicles used in their Novus business from Novus Franchising 2 LLC under a 60-month lease agreement. The initial payment for a vehicle ranges from $3,800 to $4,100, which includes the first monthly lease payment, an administrative fee, any applicable taxes (if not paid as a lump sum), and a $2,500 security deposit. Monthly lease payments typically range from $1,300 to $1,600. While there's no prepayment penalty, there is no right to early termination of the lease. Novus Franchising 2 LLC retains a security interest in the leased vehicle, and in case of default, can repossess the vehicle and recover associated costs. Novus 2 LLC, an affiliate, leases certain equipment to new franchisees. Aside from these leasing arrangements, Novus Franchising 2 LLC and its affiliates do not provide any other direct or indirect financing.
Performance Metrics
Total US Locations
128
Franchised Units
128
Corporate Units
0
Avg Square Footage
3,250
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
Novus Franchising 2 LLC has two past litigation cases disclosed, both involving its predecessor, Novus Franchising, Inc. (NFI). The first case, NFI v. Michael L. Dawson and CarMike, Inc., was filed in February 2012. NFI sued a former franchisee for breach of contract and violating a non-compete clause after termination. The franchisee counterclaimed, alleging NFI violated the Minnesota Franchise Act and committed fraud through an oral promise for a right of first refusal. The case settled in August 2013, with the franchisee agreeing to a limited non-compete and both parties releasing most claims. The second case, NFI v. Superior Entrance Systems, Inc., Superior Glass, Inc., and Knute R. Pedersen, was filed in March 2012. NFI sought to collect $12,600 owed, prohibit trademark use, and enforce a non-compete. The former franchisee counterclaimed, alleging NFI breached the agreement and made false statements regarding the non-compete. The court upheld NFI's non-compete, awarded NFI $12,600 plus attorneys' fees, and rejected the counterclaims. This matter settled in October 2013 for $100,000 from the former franchisee. Novus Franchising 2 LLC states that neither it nor its affiliates initiated any lawsuits against franchisees in 2024, and no other litigation is required to be disclosed.
Bankruptcy History
Novus Franchising 2 LLC has no bankruptcy history to disclose, as indicated by the FDD stating that no bankruptcy information is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Novus Franchising 2 LLC franchisees must provide 210 days' written notice before the end of their current agreement. They must have fully complied with all terms and operating standards of their existing franchise agreement, including timely payment of all monetary obligations to Novus Franchising 2 LLC and its affiliates. Franchisees are required to make reasonable capital expenditures to modernize their business and ensure it conforms to current Novus brand standards, including leasing any required vehicles. They must then sign Novus Franchising 2 LLC's then-current form of franchise agreement and pay a re-franchise fee of $4,000 (reduced to $2,500 for additional franchises renewed simultaneously, or $2,500 if they signed the 5-Year NAPA Co-Location Addendum).
Training & Support Program
Franchisor Assistance
Before opening, Novus Franchising 2 LLC or its affiliate, Novus 2, provides the initial vehicle (unless delayed), equipment, tools, supplies, and promotional materials, arranging for their delivery. For retail locations, Novus Franchising 2 LLC offers consultation for site selection and can assist with lease negotiation upon request. It provides an initial training program for up to two individuals, covering business operations, sales, management, advertising, marketing, glass repair, and glass replacement. For the first franchise, a "fast start" field representative offers up to two weeks (retail) or one week (mobile) of in-field training during the first two months, along with 60 days of telephone advice on business development. Manuals and opening advertising materials are also provided. During operation, Novus Franchising 2 LLC or its affiliates continue to provide vehicles, equipment, and products. Ongoing assistance includes approved training programs in glass repair and replacement, management and selling techniques, and telephone support from a representative. Novus Franchising 2 LLC promotes franchisees for national or regional accounts (like insurance and fleet accounts), handling claims management and remitting payments after deducting any outstanding franchisee obligations. Additional or advanced training programs are periodically offered (with potential fees). A business coach may be sent to the market if requested or deemed necessary, with the franchisee covering fees and travel expenses. Franchisees are provided a laptop and printer pre-loaded with point-of-sale and accounting software, and Novus Franchising 2 LLC establishes and maintains a homepage on its website for each business.
Initial Training Hours
140
Training Location
Franchisor's office in St. Paul, Minnesota, or at designated regional training centers in Concord, California, Atmore, Alabama, Newton, Iowa, or Longmont, Colorado. Some training is also available online or via webinar.
Ongoing Support
Novus Franchising 2 LLC provides ongoing support to its franchisees through various means. This includes offering approved training programs for glass repair and replacement, as well as management and selling techniques. Franchisees have telephone access to a representative for assistance with implementing the business system. Novus Franchising 2 LLC actively promotes franchisees for involvement with national or regional accounts, such as insurance companies and fleet accounts, and manages the claims payment process for these accounts, remitting funds to the franchisee after deducting any outstanding financial obligations. Periodically, additional or advanced training programs are offered, which may incur fees. If a franchisee requests or requires additional assistance, Novus Franchising 2 LLC may send a business coach to their market, with associated fees and travel expenses borne by the franchisee. Franchisees are equipped with a laptop and printer pre-loaded with point-of-sale and accounting software, and Novus Franchising 2 LLC establishes and maintains a homepage for their business on its website.
Franchise Requirements
Ideal Candidate Profile
Novus Franchising 2 LLC seeks individuals who are committed to dedicating their full-time efforts to operating the Novus business, either personally or through a full-time manager. The ideal candidate or their designated manager must successfully complete all required initial training programs. The business needs to have at least one full-time employee, who can be the owner or manager, primarily focused on performing or marketing glass repair and replacement services. Additionally, at least half of the total employees must successfully complete either the initial training program or a 3-day employee technical training program. While not a strict requirement for all franchisees, being an experienced master auto glass technician certified by the Auto Glass Safety Council (AGSC), or employing such a certified technician, can allow for a waiver of specific glass replacement training. All drivers of company vehicles must possess valid licenses, be covered by vehicle insurance, and adhere to any additional requirements set by Novus Franchising 2 LLC.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Novus Franchising 2 LLC defines its franchise territories using mapping software and vehicle data from a third-party source. Each territory consists of one or more zip codes or partial zip codes, and typically includes approximately 120,000 vehicles or more.
Staffing Notes
Novus Franchising 2 LLC requires that the Novus business be operated by the franchisee or a full-time manager who devotes their full efforts. The franchisee or manager, along with at least one additional employee, must successfully complete the required initial training programs. At least one full-time employee (who can be the owner or manager) must dedicate their time to performing or marketing glass repair and replacement services. Furthermore, at least half of the total employees must successfully complete either the initial training program or a 3-day employee technical training program. Novus Franchising 2 LLC does not impose specific hiring restrictions on managers, nor does it require them to have an ownership interest. All managers and employees must agree to maintain the confidentiality of the company's proprietary information. Drivers of any vehicles used in the business must hold valid licenses, be authorized by the vehicle insurance, and meet any additional specifications set by Novus Franchising 2 LLC.