Gateway Cigar Store/Newstands

#97

At a Glance

Products & Services: Newsstand & sundry store

Number of Locations: 380

Total Investment: $55.88K - 501.75K

Founded: 1983

Began Franchising: 1983

About Gateway Cigar Store/Newstands

Gateway Newsstands was founded in 1983 by Michael Aychental and David Goldman, who started franchising the concept the same year. A family-owned and -operated partnership based in Canada, Gateway has grown to more than 300 stores in North America, including locations in Toronto, New York and Chicago.

Gateway emphasizes a hands-on business approach, putting a franchise owner in each of its locations. Franchisees work from kiosks or stores in large office buildings, selling snacks, drinks, candy, cards, tobacco, reading material, lottery tickets and other impulse buys. Open from 7:30 a.m. to 6:00 p.m., Gateway stores have less demanding working hours than most convenience stores.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2012	139	241	0	0
2011	136	241	0	0
2010	133	246	0	0
2009	138	244	0	0

Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S. and Canada.

Startup Costs, Ongoing Fees and Financing

Total Investment: $55,875 - $501,750
Franchise Fee: $15,000 - $150,000
Ongoing Royalty Fee: 3.5%
Term of Franchise Agreement: 5, 7 or 10 years, renewable

Financial Requirements

Net Worth: $200,000
Liquid Cash Available: $75,000

Operations

Number of employees needed to run franchised unit: 1 - 2. Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: At franchisee's location: 2 days-1 week.

Ongoing Support: Newsletter, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives

Other marketing support: Head office & field support