Segment Reporting:

9 Months Ended

Sep. 26, 2020

Segment Reporting:

Segment Reporting:

13. Segment Reporting:

The Company currently has two reportable business segments, franchising and leasing. The franchising segment franchises value-oriented retail store concepts that buy, sell, trade and consign merchandise. The leasing segment includes (i) Winmark Capital Corporation, a middle-market equipment leasing business and (ii) Wirth Business Credit, Inc., a small ticket financing business. Segment reporting is intended to give financial statement users a better view of how the Company manages and evaluates its businesses. The Company’s internal management reporting is the basis for the information disclosed for its business segments and includes allocation of shared-service costs. Segment assets are those that are directly used in or identified with segment operations, including cash, restricted cash, accounts receivable, prepaid expenses, inventory, property and equipment, investment in leasing operations and goodwill. Unallocated assets include corporate cash and cash equivalents, current and deferred tax amounts, operating lease right of use assets and other corporate assets. Inter-segment balances and transactions have been eliminated. The following

tables summarize financial information by segment and provide a reconciliation of segment contribution to operating income:

	Three Months Ended				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Revenue:
Franchising	$	15,581,200	$	15,305,400	$	37,225,700	$	42,682,500
Leasing		2,695,800		4,375,500		12,040,800		12,733,800
Total revenue	$	18,277,000	$	19,680,900	$	49,266,500	$	55,416,300
Reconciliation to operating income:
Franchising segment contribution	$	10,789,900	$	9,895,700	$	22,601,000	$	25,844,500
Leasing segment contribution		1,707,900		2,379,000		6,676,400		6,343,600
Total operating income	$	12,497,800	$	12,274,700	$	29,277,400	$	32,188,100
Depreciation and amortization:
Franchising	$	70,800	$	79,000	$	216,100	$	208,900
Leasing		49,900		31,700		150,600		67,800
Total depreciation and amortization	$	120,700	$	110,700	$	366,700	$	276,700

	As of
	September 26, 2020		December 28, 2019
Identifiable assets:
Franchising	$	4,285,500	$	3,736,000
Leasing		16,772,300		26,596,700
Unallocated		14,780,800		31,509,500
Total	$	35,838,600	$	61,842,200