Rank no. 97 – Gateway Cigar Store/Newstands – US

Rank no. 97 – Gateway Cigar Store/Newstands – US


Rank no. 97 – Gateway Cigar Store/Newstands – US

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Products & Services: Newsstand & sundry store

Number of Locations: 384

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
2013 145 239 0 0
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

Franchise Ranking History

Franchise 500®: #97 (2013), #180 (2012), #163 (2011), #111 (2010), #146 (2009),
America’s Top Global: #102 (2013), #144 (2012), #129 (2011), #91 (2010), #114 (2009),

FRANCHISE HIGHLIGHTS

Franchise Overview
Gateway Cigar Store/Newstands is a Business-to-Business franchise in the Other market. Gateway Cigar Store/Newstands has an estimated 380 franchises, which is 243 more than the average for all Franchise Business Opportunities.

Franchise Fees
Gateway Cigar Store/Newstands’s average initial franchise fee is $82,500, which is $52,500 more than the average for all Franchise Business Opportunities. The estimated average total initial investment for Gateway Cigar Store/Newstands is $278,812, which is $65,462 more than the average for all Franchise Business Opportunities. Additionally, the franchise requires a minimum net worth of $200,000.

Franchise Specifics
The franchise term for Gateway Cigar Store/Newstands is 10 years, which is the average for all Franchise Business Opportunities. Operation training for the Gateway Cigar Store/Newstands franchise includes At franchisee’s location: 2 days-1 week.

FRANCHISE FEES

Franchise Fee

$15,000 – $150,000
Total Start-up Investment

$55,875 – $501,750
Liquid Capital Required

$75,000
Minimum Net Worth

$200,000
Royalty

4

FRANCHISE AVAILABILITY

State Availability

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District Of Columbia
Florida
Georgia
More
Country Availability
United States
Canada