1. Organization and Business:

Winmark Corporation and subsidiaries (the Company) offers licenses to operate franchises using the service marks Plato’s Closet®, Play It Again Sports®, Once Upon A Child®, Style Encore® and Music Go Round®. In addition, the Company sells point-of-sale system hardware to its franchisees and certain merchandise to its Play It Again Sports franchisees. The Company uses its Winmark Franchise Partners® mark in connection with its strategic consulting and corporate development activities. The Company also operates both middle market and small-ticket equipment leasing businesses under the Winmark Capital® and Wirth Business Credit® marks. The Company has a 52/53-week fiscal year that ends on the last Saturday in December. Fiscal years 2018 and 2017 were 52-week fiscal years, while 2016 was a 53-week fiscal year.

Following is a summary of our franchising activity for the fiscal year ended December 29, 2018:


	12/30/2017	OPENED	CLOSED	12/29/2018
Plato’s Closet
Franchises - US and Canada	476	11	(7)	480
Once Upon A Child
Franchises - US and Canada	360	24	(5)	379
Play It Again Sports
Franchises - US and Canada	281	6	(6)	281
Style Encore
Franchises - US and Canada	61	9	(3)	67
Music Go Round
Franchises - US	33	2	(1)	34
Total Franchised Stores	1,211	52	(22)	1,241