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Home > Franchises > Gateway Cigar Store Newstands
Gateway Cigar Store Newstands
A franchise agreement takes place when the concerned parties involved are bound together through certain contractual provisions. This is an arrangement whereby someone with an idea for a business, the franchisor, sells to another person the franchisee the rights to use the business's name, sell a product, or provide a service to someone else. A franchise agreement will usually specify the given territory the franchisee retains exclusive control over the area protection, as well as the extent to which the franchisee will be supported by the franchisor.
Gateway Cigar Store was established 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 big office buildings, selling snacks, drinks, candy, cards, tobacco, reading material, lottery tickets and other impulse buys. The principals of the company have a collective sum of 43 years of experience in the industry.
Costs and fees include total investment of $55900-362800, express kiosk option available, franchise fee $15000-125000; ongoing royalty fee is 3.5 percent. Term of agreement is 5, 7 or 10 years, renewable and the fee is variable. They provide good service and ranked 127 in 2006, rank 107 in 2005, 96 in 2004, and 99 in 2003, 86 in 2002 in Franchise 500. Ranked 1 in category in 2005, 2004, 2003, and 2002. In America's Top Global Franchises, ranked 95 in 2006, 71 in 2004, according in Rankings in Entrepreneur magazine 2002-2006.
Gateway Newstands provides the individual franchisee with a turnkey operation in a location that he would not be able to secure on his own. Gateway has outstanding relationships with potential landlords that the typical franchisee could not hope to achieve. The future for Gateway is bright since the company is expanding at a faster rate than any competitors. The Franchisee operator has a vested interest in promoting the store sales and customer satisfaction. This level of service is difficult to duplicate with corporate staff and therefore, the Gateway Store will continue to be a pleasant shopping experience for customers and a successful addition to any new or existing office, retail or transit development.
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