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 | Gateway Newstands |
Business Type
FranchiseMin Liquid Capital
$75,000Total Investment
$55,900 to $362,800Required Net Worth
$200,000Number of Units
489In Business Since
1982* For Current Info See:
Franchise Disclosure Document
Overview
Gateway Newstands currently is franchisor to over 400 Gateway Newstands, leasing space from 75 square feet to 700 square feet in high traffic, easily accessed, lobby locations in high rise office towers, transit locations and shopping centres in Canada, and the U.S.A.
Gateway is totally franchised, and does not operate corporate units. Franchisees are obtained primarily by referral in major cities like Toronto, Ottawa, Montreal, Chicago, and Philadelphia, although periodic advertising is necessary to increase the selection of good quality potential operators of the company's business. The Gateway franchise system has proven to be a successful business proposition.
Gateway is totally franchised, and does not operate corporate units. Franchisees are obtained primarily by referral in major cities like Toronto, Ottawa, Montreal, Chicago, and Philadelphia, although periodic advertising is necessary to increase the selection of good quality potential operators of the company's business. The Gateway franchise system has proven to be a successful business proposition.
Products & Services
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Basically, Gateway is a convenience store operating out of kiosks, and in-line stores in large office buildings, shopping centres, and transit locations, selling tobacco and related products, lottery tickets, confectionery, newspapers, magazines, pocket books, cards, gifts, hot & cold beverages, snack foods, food products and other related needs.
The major strength of this franchise relates primarily to its traditional merchandising, featuring nationally advertised, pre-packaged, every day consumer needs sold to a captive population generally with an exclusive use clause for its merchandise for the full term of the lease and options thereofStore fit-up, and construction is tendered, and let to the lowest qualified bidder.
Currently, Gateway sources leasehold improvements through a number of competing suppliers. Gateway management assists franchisees to inventory the units, and obtain necessary permits to operate the company's business. Legals, documentation, and supervision, are handled in house with minimal staff. Sales reports are taken monthly from electronic cash registers to determine royalty percentages.
The Franchisees operates by way of a Sublease signed by the Landlord principal, which affords the franchisee with all the rights and obligations of the franchisors head Lease.
The major strength of this franchise relates primarily to its traditional merchandising, featuring nationally advertised, pre-packaged, every day consumer needs sold to a captive population generally with an exclusive use clause for its merchandise for the full term of the lease and options thereofStore fit-up, and construction is tendered, and let to the lowest qualified bidder.
Currently, Gateway sources leasehold improvements through a number of competing suppliers. Gateway management assists franchisees to inventory the units, and obtain necessary permits to operate the company's business. Legals, documentation, and supervision, are handled in house with minimal staff. Sales reports are taken monthly from electronic cash registers to determine royalty percentages.
The Franchisees operates by way of a Sublease signed by the Landlord principal, which affords the franchisee with all the rights and obligations of the franchisors head Lease.
Training & Support
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Gateway provides the franchisee with a prime location and leasehold improvements, fixtures, and equipment, and operations expertise. For this service the franchisee pays Gateway a franchise fee and reimburses it for the cost of the leasehold improvements, furniture, and equipment. 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 excellent relationships with potential landlords that the typical franchisee could not hope to achieve. In addition, the co-ordination of the construction of the leasehold improvements is also provided to the franchisee. This coordination is also a skill that the franchisee does not normally possess.
Why Gateway Newstands?
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Aggressive management at Gateway has been successful in cultivating a market niche, previously ignored by corporations, and thereby has created a virtual lock on potential sites by establishing itself as the foremost newstand operation.
The working hours for a Gateway location in office towers and some transit locations are less demanding (7:30 to 6:00) than most convenience store locations. Consequently, there is a high demand for Gateway franchises by experienced operators as well as by high quality operators who would not normally be attracted to a convenience store operation because of the long hours.
Finally, and most importantly, Gateway is not vulnerable to significant operational problems. Gateway is a simple turnkey franchise operation. It has resisted the temptation to provide additional services (e.g. warehousing, etc.) to franchisees after start-up for additional royalties. Traditionally, the extra service areas have left franchisors vulnerable to operational problems leading to a significant impact on profits and returns.
The working hours for a Gateway location in office towers and some transit locations are less demanding (7:30 to 6:00) than most convenience store locations. Consequently, there is a high demand for Gateway franchises by experienced operators as well as by high quality operators who would not normally be attracted to a convenience store operation because of the long hours.
Finally, and most importantly, Gateway is not vulnerable to significant operational problems. Gateway is a simple turnkey franchise operation. It has resisted the temptation to provide additional services (e.g. warehousing, etc.) to franchisees after start-up for additional royalties. Traditionally, the extra service areas have left franchisors vulnerable to operational problems leading to a significant impact on profits and returns.
