Gateway Newstands

Newsstand and sundry stores

2023 Franchise 500 Rank: N/R Not ranked last year

Initial investment: $56K - $502K

Units as of 2018: 367 3% over 3 years

Company Overview

Gateway Newstands 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.

About Gateway Newstands

Industry	Retail
Related Categories	Miscellaneous Retail Businesses
Founded	1983
Parent Company	Tobmar Investments Int'l. Inc.
Leadership	Steve Tennant, CEO
Corporate Address	240 Chrislea Rd. Woodbridge, ON L4L 8V1
Social	Facebook

Business Overview

Franchising Since	1983 (40 years)
# of employees at HQ	25
Where seeking	This company is offering new franchisees worldwide.
# of Units	367 (as of 2018)

Information for Franchisees

Here's what you need to know if you're interested in opening a Gateway Newstands franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$15,000 - $150,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$55,875 - $501,750
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$200,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$75,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	3.5%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	5, 7 or 10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing	Gateway Newstands offers in-house financing to cover the following: startup costs, equipment
Third Party Financing	Gateway Newstands has relationships with third-party sources which offer financing to cover the following: startup costs, equipment

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	1-2 weeks
Ongoing Support	Purchasing Co-ops Newsletter Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection
Marketing Support	Co-op Advertising Ad Templates Regional Advertising Social Media Website Development

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	1-2
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No

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Franchise 500 Ranking History

Compare where Gateway Newstands landed on this year's Franchise 500 Ranking versus previous years.

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Updated: December 12th, 2022

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Gateway Newstands

Company Overview

About Gateway Newstands

Business Overview

Information for Franchisees

Financial Requirements & Ongoing Fees

Financing Options

Training & Support Offered

Operations

Franchise 500 Ranking History

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