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Below is an in-depth analysis and side-by-side comparison of Gateway Newstands vs Planet RYO including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $55,875 - $501,750 | $98,225 - $208,000 |
Franchise Fee | $15,000 - $150,000 | $15,000 - $30,000 |
Royalty Fee | 3.5% | 6% |
Advertising Fee | - | 1% Nat'l +3% Local |
Year Founded | 1983 | 1993 |
Year Franchised | 1983 | 1993 |
Term Of Agreement | 5 | - |
Term Of Agreement | 5 | - |
Renewal Fee | Varies | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | Yes/Yes | -/- |
Equipment | Yes/Yes | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | On-The-Job Training: Up to 40 hours | - |
Support | Purchasing Co-ops Newsletter Toll-Free Line Grand Opening Security/Safety Procedures Field Operations | - |
Marketing | Social media Website development | - |
Operations |
Number of employees needed to run franchised unit: 1 - 2
Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | Yes | - |
International Expansion | No | - |
Founded in 1993 by Mark and Frances Tucci, Planet RYO (formerly Custom Blends) quickly rose to the cutting edge of the tobacco industry by being one of the first companies to provide an extensive line of premium roll-your-own tobaccos. Over that time we have established a one-of-a-kind, modern smoke shop experience with a full range of products for everyone from the hobbyist smoker, cigar aficionado or the cigarette smoker who chooses to enjoy premium quality tobaccos while saving money. We have also been responsible retailers, requiring everyone who enters our stores to be of legal age and never trying to attract new smokers, but catering to current smokers who are more discriminating. Our motto has always been:
If you don’t smoke, don’t start. If you do smoke, smoke smart.