Play N Trade Video Game Franchise

[bubblyboy]

They will be on "The Big Idea" with Donny Deustche tonight.

[Nadira]

Yes, whyme...please share what you've learned.  We're considering opening two PNT stores but have never owned/operated a franchise before.  We've started our research into PNT and were initially impressed and excited to get going, however, the more I learn the less impressed I am.  For one thing, they won't tell us how much money we could possibly make.  That's a HUGE detail they're leaving out.  Now that I read that so many stores are closing, I can see why they don't want to give that information out.

Nadira

[bubblyboy]

Don't do it.

[dd300]

PNT is a good idea, but they are having a hard time with Game Stop's buying power and deep pockets. The future of video games will be with the Activisions and Electronic Arts as they navigate towards the direct down load from the consumer and bypass the middle men. Also. PNT owns another franchise that has not done very well and that is Yakety Yak.

[craigs]

Has anyone heard of 3D games? Another franchise model that seems like copy cating playntrade.

3dgamescorp.com

With Playntrade not seeming like they are doing that well, what chances does 3d games have. Playntrade seems a lot better than that company.

[Marty]

Play N Trade is the best thing to happen to the Video Game Industry since the NES. It’s a franchise model, which means the owners have the ability to make alot of money or screw it up. The store and everything it stands for, is the best thing out there. Why does everyone jump on the Franchisor and forget about the moron that didn’t follow their proven system? If you are going to let negative blogs affect you decision about Quiznos, or Play N Trade or any other franchise out there, Stay in your dead end job! Your too weak minded to make it anyway. Owning a franchise is for the strong minded, not the weak and pathetic.

[Franchise Pundit]

Play N Trade is the best thing to happen to the Video Game Industry since the NES. It’s a franchise model, which means the owners have the ability to make alot of money or screw it up. The store and everything it stands for, is the best thing out there. Why does everyone jump on the Franchisor and forget about the moron that didn’t follow their proven system? If you are going to let negative blogs affect you decision about Quiznos, or Play N Trade or any other franchise out there, Stay in your dead end job! Your too weak minded to make it anyway. Owning a franchise is for the strong minded, not the weak and pathetic.

Your premise is faulty.  Strictly following a franchise model does not ensure success by any means, just like those franchisees who fail cannot universally be attributed to straying from the franchise system. 

You need to have

• an obvious competitive advantage,
• systematic and reliable customer acquisition process,
• great location with a lease premium no higher than the additional revenue the premium location will generate,
• franchisor offering innovative and increasingly profitable product or service offerings.

 

[FuwaFuwaUsagi]

Frame Ryan's last post.

Great post!!!

FuwaFuwaUsagi

[Big Mistake]

OH My It is us The X Georgia PLAYNTRADE Owners

I never publically bashed them,but if you have a week to take notes i can fill you in on how horrible they are!!!!!!!!

[droolpillow]

A week's worth of notes is not necessary, but in short... why are they so horrible?

[Raider Joe]

Wonder if this model works on a 1000 sq. ft with annual rent at $25,000?  This location is in front of a high school and good density.  I don't like the 1/2 mile radius that PNT offers. 

Avg. GameStop is doing $1,000,000 in annual sales.  Does anyone out there know the PNT avg. sales?

   

[Interested ...]

Big Mistake ... it's been a few months since your post.  I'm looking into opening a PNT in the midwest and would love to hear what you have to say about the company/your experience.

[Gillis]

Before you buy a franchise there are some things you should learn.  Learn how the franchise company works and how they make their money of their franchisees.  What kind of support systems do they have? What kind of protection to your territory is there. Is there an owners community or association.

There are a lot of factors to you decision in buying a franchise, not just that this is a cool place and I want one.  The bottom line is ROI, return on investment.  Though legally the franchisor can not disclose the numbers of an actual store, you can contact a store and let them know the situation that you are in and would like some feedback.  If they are willing to disclose their number great.  Don't just poll the owners that they tell you to call.  Usually these are the owners that are hand picked that they can show off as successful.  Ask them for a list of all the owners so you can call who you want.

From what I understand PNT only protects you for a half a mile.  WTF!  Seriously if you had one of the most successfull stores in the franchise what keeps them from building 2 more on each side of you half a mile away and splitting your revenue into1/3 of what it was.

For those of you looking to purchase a franchise it is best to contact a professional that can help you find the best one.  There are many great companies out there that broker sales.  Companies like myfranchisepath.com and franchisethis.com are some of the many that will help you make the right decision.  Don't get your heart set on one franchise.  PNT is not the only game franchise out there.  There are 4 more that have just gotten started.  I hear a lot of complaints and have actually read their UFDD and have questions on some of the fees.

Do your research!  Then seek a professional.

[Gillis]

GameStop Offering Franchises?  I’ve been in the video game industry a while and thinking about a franchise and just heard from a well connected distributor contact of mine in the business that GameStop’s looking at starting to sell franchises for their stores in the near future.  As the dominant game retailer, I wonder what that will do to other video game franchisors that have to deal with all GameStop’s aggressive competitive marketing and their volume cost advantages with game manufacturers.  Need more info on pricing, etc, but this might be my way in -- seems smart to join forces with the giant instead of trying to compete against it.

Anyone that buys a franchise from a corporation that has 5000 corporate stores is just asking to get punished.  If you know nothing about franchising retain this.  CONFLICT OF INTEREST!

You give them 25k as the franchise fee.  You sink 350k on your store.  They build 2 new corporate stores 1/2 a mile beside you and 1/4 mile in front of you after they analyze your number and see that this is a prime location.  Now your out of business and owe someone 400k.  Now was that a good idea.  Look at PNT, Gamer Doc and Game ON.  PNT has some stuff they are hidding.  Gamer Doc is a spin off of PNT, Game On is new and have some good alternative revenue streams.


Good Luck

[Microplay]

This is a VERY cyclical industry.  Many have tried to do it before.  BIG competition from Blockbuster, Hollywood Video et al on the rental and the Big boxes (using Video Games as a loss leader). 

Check out the Microplay example. 

Also look for what your competitive advantages are if you join the franchise.  Now compare that to what the costs (fees, royalties etc.) will be.  Hope it helps.