Play N Trade
Encyclopedia
Play N Trade is a video game and entertainment software retailer. The company, whose headquarters are in San Clemente, California, United States currently operates stores throughout the United States and Canada and is referred to itself as in press releases as "the fastest-growing video game retail franchise" in the United States
, expected to have more than 200 outlets by the end of 2010 and 1,000 stores by the end of 2015. As of April 2008, Play N Trade has stores in over 40 U.S. State
s, as well as Canada
, Puerto Rico
, and Guam
.
Play N Trade stores sell new and used video games and consoles
, and also accept trade-ins (including old games). Services provided include disk repair, disc protection plans, and console cleaning and repair. Play N Trade is the first video game retailer to host weekly in-store tournaments, and also hosts corporate sponsored national tournaments.. Most Play N Trade stores also carry vintage games and game consoles.
In 2007, Play N Trade was ranked in the Franchise 500 and New Franchise 50 by Entrepreneur Magazine
and had been successful in recent years, almost doubling its nationwide stores in 2006. Entrepreneur Magazine also named Play N Trade one of the top ten new franchises for 2008. The franchise peaked in 2009 with a total of 248 stores in the United States and Canada. In 2011 it is listed as have dropped to a total of 159, with a decrease of 70 stores from 2009 to 2010. The drop in franchise locations may be a result of the legal troubles that have faced the company. On April 14, 2009, the California Corporations Commissioner took action against Play N Trade Franchise, Inc., filing with the Department of Corporations of the State of California, finding that they (Play N Trade), had "violated multiple provisions of the California Franchise Investment Law" , and were ordered to pay citations in the amount of $132,500 to the State Corporations Fund. They were further ordered to "pay restitution in the amount of a franchise fee to each California franchisee to which it sold a franchise". Instead the Commissioner and Play N Trade agreed on some of the following financial aspects, for Play N Trade to pay $50,000 in citations in three installments, but if they fail to make full and timely payments, they would have to pay the full citation amount of $132,500. Play N Trade also agreed to pay $5,000 to each franchisee the purchased one franchise, $7,500 to each franchisee who purchased two franchises, and $10,000 to each franchisee that purchase three or more franchises. The settlement was made without Play N Trade admitting to the charges.
Adding to the difficulties that Play N Trade has been facing, they have also been sued by Eagle‘s Flight of America, Inc., who provided corporate training. According to their filing, Play N Trade was to pay $121,000 for their services, in installments, which Play N Trade failed to make payments. On January 5, 2011, Play N Trade's motion to dismiss the complaint, or transfer the venue to California instead of Minnesota was denied.
Play N Trade has also faced complaints in online forums by individuals stating they are franchise owners, that as a corporate entity it has not been supporting the franchises, choosing rather to focus on selling new franchises. On some occasions, those representing themselves as individuals with Play N Trade corporate have also taken to the sites to personally defend the company. One complaint that seems to be recurring is the lack of a good distribution network, with the company allegedly telling a store owner at one point “get it at Target, call your competition and see what they have left” .
According to CEO Larry Plotnick, Play N Trade's competition includes GameStop
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, expected to have more than 200 outlets by the end of 2010 and 1,000 stores by the end of 2015. As of April 2008, Play N Trade has stores in over 40 U.S. State
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
s, as well as Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
, and Guam
Guam
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...
.
Play N Trade stores sell new and used video games and consoles
Video game console
A video game console is an interactive entertainment computer or customized computer system that produces a video display signal which can be used with a display device to display a video game...
, and also accept trade-ins (including old games). Services provided include disk repair, disc protection plans, and console cleaning and repair. Play N Trade is the first video game retailer to host weekly in-store tournaments, and also hosts corporate sponsored national tournaments.. Most Play N Trade stores also carry vintage games and game consoles.
In 2007, Play N Trade was ranked in the Franchise 500 and New Franchise 50 by Entrepreneur Magazine
Entrepreneur Magazine
Entrepreneur is a publication that carries news stories about entrepreneurialism, small business management, and business opportunities. It is published by Entrepreneur Media Inc., headquartered in Irvine, California....
and had been successful in recent years, almost doubling its nationwide stores in 2006. Entrepreneur Magazine also named Play N Trade one of the top ten new franchises for 2008. The franchise peaked in 2009 with a total of 248 stores in the United States and Canada. In 2011 it is listed as have dropped to a total of 159, with a decrease of 70 stores from 2009 to 2010. The drop in franchise locations may be a result of the legal troubles that have faced the company. On April 14, 2009, the California Corporations Commissioner took action against Play N Trade Franchise, Inc., filing with the Department of Corporations of the State of California, finding that they (Play N Trade), had "violated multiple provisions of the California Franchise Investment Law" , and were ordered to pay citations in the amount of $132,500 to the State Corporations Fund. They were further ordered to "pay restitution in the amount of a franchise fee to each California franchisee to which it sold a franchise". Instead the Commissioner and Play N Trade agreed on some of the following financial aspects, for Play N Trade to pay $50,000 in citations in three installments, but if they fail to make full and timely payments, they would have to pay the full citation amount of $132,500. Play N Trade also agreed to pay $5,000 to each franchisee the purchased one franchise, $7,500 to each franchisee who purchased two franchises, and $10,000 to each franchisee that purchase three or more franchises. The settlement was made without Play N Trade admitting to the charges.
Adding to the difficulties that Play N Trade has been facing, they have also been sued by Eagle‘s Flight of America, Inc., who provided corporate training. According to their filing, Play N Trade was to pay $121,000 for their services, in installments, which Play N Trade failed to make payments. On January 5, 2011, Play N Trade's motion to dismiss the complaint, or transfer the venue to California instead of Minnesota was denied.
Play N Trade has also faced complaints in online forums by individuals stating they are franchise owners, that as a corporate entity it has not been supporting the franchises, choosing rather to focus on selling new franchises. On some occasions, those representing themselves as individuals with Play N Trade corporate have also taken to the sites to personally defend the company. One complaint that seems to be recurring is the lack of a good distribution network, with the company allegedly telling a store owner at one point “get it at Target, call your competition and see what they have left” .
According to CEO Larry Plotnick, Play N Trade's competition includes GameStop
GameStop
GameStop Corporation is an American video game and entertainment software retailer. The company, whose headquarters is in Grapevine, Texas, United States, operates 6,500 retail stores throughout the United States, Canada, Australia, Austria, Denmark, Finland, France, Germany, Ireland, Italy, New...
.