Business Description

The world's largest and oldest chain of premium cigar, tobacco, smoking accessory and gift stores, with 70 years' experience as the undisputed industry leader.

Franchisor Background

Year Established:  1928

Franchising Since:  1965

Operating Units:
Franchised Units:	104	97.2%
Company-Owned Units:	3	2.8%
Total Operating Units:	107	100.0%
Geographic Distribution: U.S.: 106 99.1% In 50 States Canada: 1 0.9% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 107 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. California	17
2. Illinois	9
3. Ohio	9

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Oregon, Rhode Island, Virginia, Washington, Wisconsin, District Of Columbia, Alberta

Financial Requirements

Investment:
Minimum Net Worth:	$250-300K
Cash Investment:	$75-100K
Total Investment:	$175-250K
Average Total Investment:	$212K
Fees:
Initial Franchise Fee:	$30K
Average Franchise Fee:	$30K
On-Going Royalty:	4-5%
Average Royalty:	4%
Advertising Fee:	3%

Average Number of Employees: 1-2 Full-time, 2-3 Part-time

Space Needs (in square footage): 800-1,500

Preferred Sites: Free-standing Building, Storefront, Strip Center, Regional Mall

Other Sites:

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	5
General Business Experience:	3
Specific Industry Experience:	1
Formal Education:	2
Psychological Profile:	4
Personal Interview(s):	5
Terms of Contract
Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	5 Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	No
Size of Corporate Staff:	10
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Direct
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	At Additional Cost
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Included in Fees
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Included in Fees
Training:
1. Home Office	5 Days
2. Franchisee's Store	3-5 Days
3. Follow-Up Store Visit	Within 30 Days
Expansion Plans
Projected New Units Over Next 12 months:	25
U.S.:	Yes, All United States
Canada:	Yes, All Canada
Overseas:	Yes, All Countries