PLAY N TRADE: Video Game Franchise Played Out?

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• Sometimes people dont want to share personal information. Ask a franchisee, "Systemwide, for a guy that works in the store 40 hours a week, how much money does the average owner make after paying his loan expenses year 1 and year 2?"

• OK, I've been reading through a few of these threads. I am a business owner, still struggling but in business for 4 years now.
  My rules which I read in many books and information sources about business/entrepreneurship.
  -Open something you know and you like.
  -Research, research, research, particularly if you you are going the franchise route.
  -Location, location, location (which I screwed up a bit)
  -Don't expect to make money your first year, maybe even your first two years sometimes, depending on the industry. Make sure you have back up funds to live off of.
  I didn't go the franchise route, I wanted to do things my way and had read so much that franchises have so many rules (not a bad thing, just not for me)
  My understanding though, is part of what you pay for with a franchise is the name. When you buy a McDonald's, everyone knows McDonald's and that is part of what you are paying for. PNT to me, not a big name in my opinion. So why not start a solo venture doing the same thing if that's what you are in to?

  Oh, and expect to work a LOT in your first couple years, unless you can afford to pay someone else to. I put in up to 70 hours some weeks in my first few years. In the last year I've finally been able to start taking 2 days off a week and working only about 50-60 hours per week. I don't mind it at all, I'd rather work 60 for me than 40 for someone else. Make sure you warn your spouse though, chances are your mega hours are gonna cause some issues, mine did, but we made it through.

  I'm not saying that any of these failed franchisees didn't know all of this, but I do get the impression that SOME (not all) are a little naieve when buying a franchise, or even opening any business. Do your homework. And if like me you think you did it all, do more just to be sure. My intention was not to insult anyone and I apologize if I did.

• Marco Opolo is correct, expect to work most of the hours alone or with part time help. Relationships will become stressed and your patience will run thin.

  I think PNT corp is trying but with the amount of store failures, uncollectible royalties, and weak performance of stores in general (in a franchise system there will always be a percentage of stores that just will do great for a multitude of reasons) thier cash flow is changing from month to month. Staff reductions, changes and the introduction of a new POS system, hopefully will allow them to create a plan looking down the road into 2012.

  Is now the right time to get into PNT? Yes if you are heavy on cash, long on work ethic, and realize that you may really only realize 10-15% profit margins in the first 2-5 years until you establish your selves as the gaming leader in your community. Your profit will go directly into paying back creditors, vendors and rent.

  Unfortunatly in PNT there are so many stores failing due to lack of knowledge/support from the first sets of CEO/Franchisors that we are underfunded and overextended.

  The newer PNT's seem to be doing better but they have not been out there long enough to see the long term effects of low margins, limited product allocation, and the true effect of Gamestop's buying power and marketing.

  Gamestop is the big dog for a reason.

• can anyone tell me whom to contact at Play N Trade to get on their 'preferred vendor list" I was told as a franchise owner that you get a list of select vendors to buy your equipment from. If you are a franchise owner can you tell me what type of safes are offered on your list and what brand name?

  Thank you!

• Juan or any one else,

  I have a complete store (2 years old) in a POD storage unit. We closed our store. Comptuers, TV, consoles, inventory, SWAG. Disk cleaner, storage, coolers, halo suit, fixtures, indoor out door sign,you name it. Everything. Worth 150k or more. we were allowed out of our lease. Asking 60-65k, make an offer it will be shipped to you. I will provide complete inv and fixture info if you want.

• For the person who said they have a store for sale:

  If you are legit I would like a complete list of what you have. I am seriously considering pulling the trigger on a franchise soon (and yes I have read everything on this blog), and I am looking to cut some costs if I can.
  My email addy is
  [redacted]

  Thanks!

  Admin note: We don't allow posting of personal contact info, including email addresses, phones #s, etc. If you'd like to have your contact info forwarded, please email your request to site Admin at UnhappyFranchisee[at]gmail.com. Thanks.

• Jim,

  I have requested to the admin of this site to provide you with my email address or vica versa. In addition, it is a legit post. I will provide whatever info you need. We are completing the exiting of our store location and completing the paper work with corp this week. I can provide a complete inventory, assets, fixture, etc.. with all other materials as well (i.e. signs, swag, office supplies, storage). We are simply going to store it, so it is available immediately. Once I either recieve your email or you mine from the admin of this site I will pass along any info and would be available to talk.

  LRW

• Hello All,

  I am currently own a Play N Trade Franchise. I am limping toward my third year. I would highly advise against EVER OPENING a FRANCHISE!

  Don't believe me please talk to at least 5 Franchisee owners about the help corp has provided them. Also what was "PROMISED".

  Do the Math! Build OUT, franchisee fees, Advertising fees, percentage of gross sales, equals a very large whole with no rope.

  Unfortunately when I opened only 2 stores closed. So I had nothing to go on. But I guess meeting the area developer should have caused some red flags. He basically told me to pay for the franchisee fee and your in. OK my family were shopping other franchises and this never happed. I said what!? NO, financial background check!??? He said not needed. I came to find out later. That this guy was just collecting part of the Franchise fee. And promising the world to cash in. He could give two craps if you survived or not. He left in his and PNT wake of destroyed families and peoples financial in ruins.

  I went to Headquarters and met other new franchise owners. I was shocked to see that most of them were not really into games and was told this was basically a turn key operation. This is NOT TRUE. I have retail gaming experience and sales experience so I knew how retailed worked. These poor folks were relying on corp to train them. You would think if your making a $300k investment they would train you right?!? WRONG! A week of video game history and company over was it. Still I already put my money in this so Im gonna make it work!!

  Back home im trying to open with NO CORP help at all. They DO NOT SEND anyone from corp to help you open. I guess you just watch videos and read manuals. Wait a min they have manuals!?! At the time they didnt really. So because of some helpful franchisees near me. They helped me open and did training. They also stated the same frustration with corp. They said it's us against them. Sad that it's franchises vs corp.

  Ok well like I said my retail side kicked in and hired well. Focusing on customer service and knowledgeable staff. We overcame alot by local events, flyers, social networking. Also getting the word out. Corp was like wrap your car. Also all the while NO CORP ADS. They DO NOT ADVERTISE FOR YOU!! Even quizno's the worst of the worst has national ads!

  Now all the franchisees that helped me started closing one by one. As corp stays on the side line watching their slow demise. I still refuse to go out. I actually could make it if I didnt have to pay their ridiculous fees. My advise is if you really want to get into play n trade. Buy someone's store. You get training, save money on fixtures and build out. If you are a business owner already. Try to open a game store yourself. Dont worry about vendors. Play N trade has not helped us at all. You could google it your self and probably get better terms and pricing.

  I tell the truth when "Potential" Franchisees ask me about play n trade. I will not let corp hide the truth and destroy another family!!! So please do your homework folks and ask around. You'll see im not the only one.

  I've left out other horrible details. But you guys get the picture. I plan to get the monkey of PLayNTrade off my back. But now im doing my homework with my lawyers!

  Take Care,
  Frustrated.

• Thanks for sharing your story. My heart goes out to you. When you started no one knew what failure rate Play N Trade would have, and how many Play N Trade stores would close and fail. Today though, people know, and if they don't see that as a red flag, then that is a business decision that they are free to make.

• PNT is a pile of crap from the top down plain and simple....I've gone over there company records and minutes from the day I bought my franchise to the day it was closed down. A five year old could come up with a better plan....I'm jokin there but only slightly. PNT's basic plan is hey give us 300k, we will train you for 1week and you are on your own....oh they have customer support but its a different guy every other month cause they move on to other jobs and nobody at there corporate headquarters communicates. We sent them a notice by mail, fax, and email to several different addresses 3 months before we closed letting them know the appropriate info about the shutdown date and signing the proper paper work....but as usual this company cut F-up a cup of coffee....we get a call 1 week after the store is closed from one of the VP's saying "we've been calling your store MR. **** and we are getting no dial tone, are you having some kind of problem?"

  My Response "No problem we went out of business"

  His Reply in a smarta** tone "well did you think to tell anyone?"

  My Reply "Yessir I did I emailed you personally as well as your staff. I also faxed you a copy of our termination agreement and sent you a registered letter 3 months ago, do you people communicate out there or not?"

  His Reply "Yes we have perfect communication and teamwork out here, I'll have to check in to this"...obviously not believing me.

  Well since they had milked us for all they could we never got a call back saying yes we got that paper work sorry for the confusion thanks for 5 years of your time and 100s of thousands of dollars of your money. We got basically the middle finger from this company. I work for a much larger and more well put together operation now. Its like the difference between Pre-School and Grad-School, and I'm not even saying this place is that great, thats just how bad PNT is.

  Ingram the company that supplied us was late, and consistently sending incorrect orders for the entire 5 years. PNT didnt do jack about it despite constant complaints and Ingram did nothing. My new company had a supply problem and took care of that crap in 1 week....I'm not exaggerating here people, PNT is a gigantic pyramid scheme, designed for those in corporate to pick apart the few stores that succeed, turn them corporate and suck them dry.

  What are we on CEO number 5 or 6 in just 5 years.....oh well after Larry Plotnick leaves I'm sure the next guy will come up with the 7th plan that is supposed to save the company and make the owners rich.