Is the Novus Glass franchise opportunity a “total scam”?
“NOVUS has been awarded more U.S. Patents for windshield repair than the rest of the windshield repair industry combined.”
Novus Glass claims that it provides dedicated support to all Novus franchise owners.
The Novus website promises prospective franchisees that “The NOVUS staff of management, technical, marketing and research specialists will support you in the beginning and as your business grows.
“This means you are never alone and help is always a call or a click away. NOVUS’ more than 39 years of experience in the auto glass industry and the experience of our franchise network provide our franchisees with best practices to help their business thrive.”
However, we received an email from a person who claims that his experience as a Novus Glass franchisee was a disaster.
He has numerous Novus Glass franchise complaints, including:
”Novus Franchisee” wrote:
Novus Glass franchise is a total scam.
Their holding companies compete with franchisees through 800 numbers on their websites (which were way better than the franchise network website that they provide) and then subletting the work to some local guy in that area.
They have this attitude that they trained us and gave us their name and logo so we are really stupid to be asking for help. Their regional manager would never call or return calls and will only answer our calls after 3 or 4 days of our persistent calls to him.
They never tell us what is working for successful franchisees so we could implement the same in our areas but would continually give us new untested and unproven ideas on a whim that sometimes would send us on a wild goose chase.
Auto glass business is mostly dependent upon receiving referrals from insurance companies without which you are doomed to fail. They give us all the information to be able to become part of the insurance network but there are so many companies on it that you receive 1 or 2 referrals a week from them if you are lucky.
Their [FDD] does tell you that the company is showing a loss on their tax returns but when I had called other franchisees before buying,
most had positive things to say about them because they have a vested interest but there was 1 that talked to me for over an hour, kept engaging me in a lengthy conversation… After I became a franchisee… a lot of things suggested that he night be a shill who was actually receiving jobs through them.
READ: NOVUS GLASS FRANCHISE DISCLOSURE DOCUMENT (FDD) 2011
ARE YOU FAMILIAR WITH THE NOVUS GLASS FRANCHISE? IS NOVUS A SOLID OPPORTUNITY OR A FRANCHISE SCAM? SHARE A COMMENT BELOW.
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Your comments have been helpful. Whats sad is they get your savings and then if it doesn't work for you (which it is not going to work for all) they still expect more money as long as the agreement is in effect. How can someone get out by minimizing their losses?
Concerned:
You are right. The agreement may be in effect and the franchisor tries to portray that they are on the right side of the law.
But, you and I both know that they have never really upheld their part of the bargain and never given us the support needed to effectively market their product in order to grow the business. Their regional manager (as “nice” as he is on the surface- and they all behave nicely except for their VP operations, it’s just that actions always speak louder than words) only spent half the time in marketing training during which he comes up with all these untested, failed and sometimes illegal marketing ideas. For instance, when he says that we should recruit kids from high school to pass out fliers or business cards with special identifying codes on them to link them with that “kid” and then we should pay that kid $10 or $20 commission on each customer that converts. Well, I knew on some level that it was an immoral suggestion and never had any intentions to go that route, I found out that it was also illegal to hire kids to work for you on commission basis.
All of Novus’ marketing tools that you can buy at a premium from their so called marketing manager are only meant to promote their brand name instead of landing retail or fleet customers.
What I mean to say is that current franchisees need to document all this stuff. Get the RM or others at Novus Glass to respond to you in writing or type a type a quick minutes after each phone conversation with them and email to them and copy their superiors including their CEO in Canada.
Call the Federal Trade Commission and see what they say. Ask them if they keep your identity and personal information confidential before you even provide them with your name to make you feel comfortable. The FTC told me that they have many complaints about Novus Glass but the cases who get the priority is the one with the most complaints.
Novus Glass will threaten you with lawsuits and they know you will call them to reach a compromise and settle for a lesser amount to save what you are left with. It’s disgusting that you give them your life savings and borrowings and did not do anything wrong and you have to be the one to pay them much more to get out of this mess!
If you are confused about sticking with this business or giving up on it, I think the right way would be to approach a CPA first and see what he says based on the trend in your sales for the amount of time and efforts you have spent. Then it’s time to consult a lawyer and see if there is an effective way to get out of this and still save what you are left with. If the lawyer suggests a lawsuit or settlement during the free consultation, go to another lawyer as you don’t want to slug this out in court at your expense which is extremely risky and expensive and I have heard horror stories from franchisees where they hate their lawyers more than the franchisors after a while.
You don’t want to pay huge amounts to these NOCLASS Frauds either just to get out. You need a lawyer who can tell you how to protect yourself and your remaining assets and I am sure you will find one after meeting a few.
Don't let that RM talk you into signing another contract with them for being speedy glass certified so that you can get referrals through speedyglass.com. Think about it- one contract got you into this much trouble already- sign another one with same people?
Call your bank and cancel the Automatic EFT to them so that you have more control of your account. Get a prepaid debit card from Walmart and just pay by that.
If you do find something that they did which was an obvious fraud and criminal (don’t be surprised) then the best thing to do is go to your local POLICE STATION and file a formal COMPLAINT.
Once you do decide to quit this franchise, make sure you get all your pending payments from customers and then do NOT be in this business at all. If the covenant not to compete in invalid in your state, you can be in the business but can't service any customers you obtained through Novus including ones you obtained as being Novus franchisee. Novus Glass and windshields.com will magically start sending you more leads by email. Just ignore them as I think it's a bait as if you research their lawsuits, most of them involve covenant not to compete
Don’t let these crooks intimidate you about a lawsuit in MN as Novus Franchising Inc. is a Washington corporation with a CEO who is in Canada and mails the signed agreement from WA. Please refer to my post above on this subject.
I think we need to start complaining against these crooks on other complaint sites and also leave comments on sites they advertise their franchise.
@ Todd A. Peterson:
I completely agree with you on IFA guiding these fraudulent franchisors which explains why they all behave the same and have identical FDDs. I want to thank you for your informative posts and commend you for raising a voice.
I think the Ponzis and Madoffs finally get caught but the Skidmores of the world are free to move about the world and perpetually scam honest and hardworking people and still be on the "right side of the law" because the franchisees are AFRAID.
1. The current franchisees are afraid as they are hoping to receive help from the franchisor to be able to "make it".
2. The franchisees who have realized the fact they are failing are afraid as they are hoping that the franchisor will help them sell this franchise to someone else! And that the franchisor will waive the future royalties for however many years remain in their agreement.
(The franchisees who want to sell their failing franchise and dump the deal they wish they had never bought on to someone else are no better than the crooks they bought it from!)
3. The former franchisees are afraid as they have signed a Gag Order / Confidentiality Clause with the franchisor as part of the exit deal.
With so many afraid franchisees, what percentage do you think are actually complaining to the FTC or the Attorney General? Heck, if the media decided to do a story on this, it would be the franchisees hiding their faces with jackets instead of the crook franchisors!
Before I signed a franchise agreement, I had no idea that the law allows people to make deals with each other in which they agree not to follow the law! I had no idea that one could actually have his neighbor sign a document (which he signs in good faith) that one could damage his property whenever and the neighbor can't do anything because he signed an agreement which his lawyer told him was "one sided but pretty standard".
I now have trouble signing a simple release forms for my kid's school!
Very good points scammed franchisee!
It is sad but I think EVERYTHING you said is true! Scammed franchisees that I am reading about in other ventures are trying to sell off their franchises KNOWING that the next person with AMBITION and (this is very important) GOOD CREDIT and SOMETHING TO LOSE is fixing to get SCREWED!!! Where have we come as a country? We go to other countries to fight for other peoples freedom and to give them a voice and be able to vote but we DON'T have a VOICE in our own country and with the candidates running for office I wonder if we really have a say so in who is ELECTED to run this country. Much like politics when you sign up for a franchise your destiny is already fulfilled and it is NOT promising.
Actually, franchisees are the “batteries” the “power supply” for this fraud and corrupt system of franchising just like the Matrix.
The government needs to create more jobs, the consumer needs a known product and service he can trust, the successful businessman wants to expand his business. It's a win-win situation for all of them. These objectives are achieved by using a franchisee's money, good credit and hard work. The franchisee comes out to be the ONLY LOOSER in all of this.
The investors in Ponzi and Madoff schemes were people who just wanted to invest money and watch it grow without committing any significant time to it. They usually get so mad about being ripped off that they make a lot of NOISE and then someone eventually listens. They don't even get their money back in most cases but the culprits are eventually caught. Even when a culprit isn't caught, there is a general consensus and acknowledgment that something immoral and/or illegal happened and that there are victims.
Franchisees devote themselves full time to these franchises for free along with investing their life savings and borrowings. After loosing everything, including their dreams and self confidence, they decide to PAY even MORE to their crook franchisor and agree to remain QUIET about it all to avoid being sued by the franchisors. (wait- who wronged whom again?)
If the scammed franchisees do not complain to the FTC and the Attorney General on a much larger scale, this scam will not only continue but be promoted by the government (oh wait, is that already happening?) because it benefits everyone else while the hurt party does not cry or even let out a shriek.
If only less than 20% complain, the government writes it off as being normal scenario that does not require action (They actually allow 20% of Franchise Churning). I think the FTC does ask for your information but keeps it confidential but ask them and see what they say before you provide your personal information.
Peace
Wanna be franchisees need to do a lot more due diligence but there is a catch. How many can they spend thousands of dollars on for PROPER due diligence? ($500 spent on a regular business lawyer or his paralegal to read the FDD is worthless). If they actually spend all that money and time on investigating a franchise, we all know what they will find- that it's not for them (or anybody)!
(There is usually NO small time franchise worth buying. McDonalds or Burger King franchisees are usually millionaires before they even buy those franchises and have deeper pockets, access to better lawyers and managers and above all, command a CONTINUED respect of their franchisor's employees as they are placed much above those employees already in terms of status and power).
So the (Proper) due diligence will not let them buy any franchise. And now they have spent a major chunk of their savings on bogus franchise due diligence and probably can't afford to get in to any business.
Well, today's entrepreneur is lucky. Use the internet, search about franchises, type words like “scam” or “fraud” or “rip-off” after their franchise name to see if people have negative comments on them. Type stuff from the FDD you don't understand on google search box and you will probably get your answer for free. Only THEN spend the money on a lawyer for the 1 that you do like.
When you buy a Novus Windshield Repair franchise, just signing on the dotted line leaves you on the hook for about $60,000 even if you don't do any business in it or the franchise is terminated by either party. What did you buy if the thing fails- a GHOST? I know franchisees who had to get a job after realizing the franchise won't work and now pay the minimum royalties and monthly installments while hoping to sell the so called franchise and unload the worst mistake of their life on someone else!
Paying for such a franchise is like paying a Tarot card reader to predict your future. Just like a Tarot card reader has disclaimers saying "it's for entertainment purposes only", a bogus franchisor agreement is not a partnership agreement but an agreement to buy a brand name, equipment, supplies, training, etc. which YOU agree is priced at what they say and agree to keep paying for it even if it fails. The franchisors don't have any liability towards your success as their lawyers have put in all those disclaimers to protect them. They actually make more money by churning those franchises. Novus Auto Glass Franchise makes even more by suing franchisees after they have failed!
Trust your instincts and if you still like an idea presented to you by a prospective franchisor, listen to what he has to say, do some research and start your own legally without letting other people control your money or YOU.
What's that? They have a brand name recognition you say? Well, if you grew up in America and you never heard their name before, chances are they don't have that big a recognition to begin with.
Good luck
Hey Scammed Franchisee,
NOVUS Glass windshield repair franchise is bringing in new franchisees like never before and you have stopped barking.
What happened? Did the competitors of NOVUS cut you loose or did you finally realize that you could get in some major trouble if you keep bad mouthing NOVUS?
Franchisees are scavengers building their success on franchisor's success and they know it. Scammed Franchisee, you could not even follow a simple road map to success. Shame on you and and all your likes. Franchisees like you are the scum of the earth.
This is another update on Novus Glass Windshield Repair Franchise Review:
What these NOCLASS Frauds are doing now is called ENTRAPMENT and is illegal in all states.
They are sending windshield repair & replacement leads to former Novus Glass Franchisees by email in hopes that the former franchisees will take the bait and either go and perform the repair work themselves or pass it to someone else so that Novus Franchising can slap the former franchisee with a hefty lawsuit about covenant not to compete.
This is called Entrapment and is illegal. Therefore, do not perform work yourself or pass it to anyone else even for free! Instead, report it to the FTC.
As far as Novus Happy and his colleagues are concerned, why are they so mad if they are selling like never before?
Scavengers are animals who don't hunt themselves but are on the look out for leftovers. I thought scamsters and frauds are usually referred to as such by society. The franchisees are hardworking people who had built a good credit and savings through a lot of hardwork. The FRAUD Franchisors scam them. Who is the scavenger and scum in the eyes of a generally benevolent society?
To future NOVUS franchisees:
We know that most of you researching NOVUS Glass windshield repair and replacement land on this page and unfortunately receive a bad impression about a business that is the best in it's field.
If you take a closer look at the posts, you will know them to be obvious plants by competitors of NOVUS.
Mr. A. Allan Skidmore, CEO of TCGI, the company that owns Trans America Glass which in turn owns NOVUS Franchising Inc., is a true Christian featured on the Entrepreneurial Leaders Organization.
He deeply cares about his franchisees and works with all his team to ensure their success. He is working with his legal team to take firm action against this website and it's posters for posting false and misleading information about a company of high repute and good financial and legal standing.
So, if you are looking to be your own boss but lack the skills or education and looking to join a network that shares the Christian ideology with you, NOVUS is the right franchise for you.
I have NEVER been more dissatisfied with any service, even at a fast food restaurant. DO NOT HIRE NOVUS to replace your windshield. They came out on 9/3/14 to replace my new 2014 Pathfinder and did $3,100 worth of damage. They are refusing to pay - mostly b/c the asshat didn't have INSURANCE when he drove a NOVUS vehicle on to my property and attempted to replace my windshield. Corporate has been no help. I am no 9 days out with no vehicle. Mother of 2 and having to borrow a car from friends. This is ridiculous and has to stop. Obviously the franchise is shit and I would never recommend anyone buying in to it.