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Gateway Cigar Store/Newstands

2014 Franchise 500
#121
At a Glance

Products & Services: Newsstand and sundry store

Number of Locations: 392

Total Investment: $55.9K - $501.8K

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
2014 131 261 0 0
2013 145 239 0 0
2012 139 241 0 0
2011 136 241 0 0
2010 133 246 0 0
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S. and Canada.
Direct Capital

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).
Direct Capital
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

Franchise Ranking History

Franchise 500®: #121 (2014), #97 (2013), #180 (2012), #163 (2011), #111 (2010),
America's Top Global: #185 (2014), #102 (2013), #144 (2012), #129 (2011), #91 (2010),

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