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Business Description

Novus was organized under the laws of Delaware on April 13, 2017. Our franchises are locked afj650 Pelham Boulevard, Suite 100, St. Paul, Minnesota 55114, and our telephone number is (952) 944-8000. We do business under the names “Novus,” “Novus Franchising” and “Novus Glass;” Our Company is owned by Mondofix USA LLC (“Mondpfix USA”), which is owned by Mondofix Inc. (“Mondoflx”). Both Mondofix USA and Mondofix would be considered parents of ours. The principal address of Mondofix 99 ,to Mareoux, Suite 101, Plainville, Quebec, J7C 0B4- The principal address ofMondofix USA is the; same as ours. On or about May 31, 2017, we purchased substantially ah of the operating assets of the Novus-Glass® franchise system from Novus Franchising, Inc. (“NFI”). At the same time Mondofix acquired at of the trademarks, copyrights, and patents used by the Novus Glass® franchise system from NFFs parent, TGG International Inc. (“TCG”). Thus, NFI and TCG are considered predecessors of ours. NFl's principal address was the same as Our address, and TGG's principal business address is 8658 Commerce Corirt, Burnaby, British Columbia V5A 4N6, Canada. Except for NFI and TCG, we have no other predecessors; NFI operated and/or franchised Novus Gls® businesses, from December 1993 until we purchased of the system.

Prior Experience

In 20Q7, NFI began offering a co-branded or “affiliate” Novus Glass® license to existing automotive related businesses and nonautomotive businesses that would allow them to add a “bolt on'.' Novus Glass business to their existing business. In, 2010, NFI also began allowing some Novus franchisees to become a, certified dealer of NFI's affiliate; Speedy Auto Gl, Inc., a Washington corporation (“Spicy Auto Glass”), and to include a tougher, “Speedy Glass Certified Dealer” to identify their business. This identifier is only available in certain markets where Speedy Auto Class does; not operate, and does not have any licensees who operate. We no longer offer this program. In January 2015, NFf began offering “Area Development Agreements” that grant franchisees the right to develop 2 or more Novus retail location businesses. We will continue to offer this providing you Area Development Agreement with us, you will also sign a separate Franchise Agreement with us,: for each Novus® business you. Develop.

Business Offered

The franchise you operate will provide glass repair and replacement products and, services. Existing franchisees who have only offered glass repair products and services (not replacement) will be offered an addendum when the term of the fi original agreement expires, which will allow them to continue to offer only as repair products and services (the ‘Repair Only Addendum”) but we don't offer, any new “Glass Repair” franchises. Certain existing franchisees who own a Glass Repair franchise are currently operating under a franchise agreement that allows them to offer glass replacement services and products as a separate business and hot as part ofthefi Novus® Glass Repair franchise. Ibis option will not be offered to new franchisees or franchises not currently operating a separate ^ass replacement business.

Initial Fees

The amount of the Initial Franchise Fee for all Novus® franchises is $10,500. (Last year, the Initial Franchise Fee was, $7, 5001) If you are an active member of the United States military, or have been honorably discharged from the United States military, and if you pay the Initial Franchise Fee in full without shaving to finance it we will, reduce the fee for the first franchise you acquire by $1,000. If you are reacquiring your franchise, you, do not pay any Initial Franchise Fee to us, but you must pay a Rent Franchise Fee; of $4,000 for the first franchise, and, $2,500 for- all additional Novus® businesses you re-franchise at the same time: The Repair Only, Addendum is only offered to you if you are reacquiring your: existing Repair Only franchise.. In that situation, you do not pay any Initial Franchise Fee to m. but you must pay a Re-Franchise Fee of$31000. For the first franchise, and $2,000 for all additional Novus® businesses you re-franchise at the same time. The Initial Franchise Fee is payable in full to us at the time you sign the Franchise Agreement. Except as described below, these fees are not refundable. We also offer Area Development Agreements to develop multiple (2 or more) Novus® businesses. The development fee you pay under the Area Development Agreement is $10,500, multiplied by the; number of Novus businesses you are permitted to develop under the Area Development Agreement. (Last year, the fee was $7,500, multiplied by the number of Novus® businesses a franchisee was permitted to develop under the Area Development; Agreement.) You pay this fee to us at the time you sign the Area Development Agreement. These development fees are; not refundable, but we will credit $40400 of the development fee against the Initial Franchise Fee you pay when you sign each individual Franchise Agreement

Financing

Depending on your net Worth validate collateral credit history and other credit factors, we may finance a portion of your initial investment; If you are offered financing, we will offer to finance up to §25,000 of your initial costs. This loan will be evidenced by a Promissory Note (the “Note”), a copy of which is attached as E-1 to this Disclosure Document. The fifth requires you to pay interest on the principal balance at a fixed annual rate of9.5%. The Note is payable over 12months. The monthly payment of principal and interest is $2,192.09 and payments will begin on the last day of the month in the month after you sign your Franchise Agreement. You may prepay the Note in whole or in part, without penalty. The payments you make under the Note include the lease of certain glass repair equipment under an equipment ease with Novus 2, an affiliate Of ours, which is described in more detail below, All payments must be made' either by an automatic electronic funds transfer (EFT) or an automatic monthly credit card payment. You or another person acceptable to us guarantee the Note. You must also sign a Security Agreement (Exhibit E-2 to Disclosure Document) granting in a security interest in the assets of your business. At our request, you must sign all necessary financing statements and other documents and pay the costs off lining the financing statements or other documents.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits it's to provide information about; the actual or potential financial performance of our' franchised and/or franchise of-owned outlets, if there; :is a reasonable basis for the information, and if the information is included in die Disclosure Document Financial performance information that differs from that included in Item 19 may be given only if: (1) we provide the actual records of an existing outlet you are considering buying; or (2) we supplement the information provided in this Item 19, for example, to providing information about possible performance at a particular location or under particular circumstances.