Gateway Cigar Store/Newstands

Founded: 1983 Franchising since: 1983
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.

Address: 240 Chrislea Rd. Woodbridge, Ontario L4L 8V1

Phone: (800)942-5351/ (905)851-9652

Franchisor is a privately-held company with 20 employee(s); 4 employee(s) in franchise department.

Franchise Units

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2009	138	244	0	0
2008	147	233	0	0
2007	147	231	0	0
2006	145	229	0	0

Where Seeking Franchisees
Nationwide
Outside the U.S.: Canada

Total investment: $55,875 - $501,750
Franchise fee: $15,000 - $150,000
Ongoing royalty fee: 3.5%
Term of agreement: 5, 7 or 10 years, renewable


Express/kiosk option available

Type of Financing Available

	In-House	Third Party
Franchise Fee	No	No
Startup Costs	No	No
Equipment	No	Yes
Inventory	No	No
Accounts Receivable	No	No
Payroll	No	No

Qualifications
Net worth requirement: $200,000
Cash liquidity requirement: $75,000
Business Experience:

• General business experience

Operations

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

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 500® rank:
#111 (2010); #146 (2009); #285 (2008); #168 (2007); #127 (2006);

America's Top Global Franchises:
#91 (2010); #114 (2009); #196 (2007); #95 (2006);