Segment Reporting:

9 Months Ended

Sep. 28, 2013

Segment Reporting:

Segment Reporting:

11.  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, accounts receivable, prepaids, inventory, property and equipment and investment in leasing operations. Unallocated assets include corporate cash and cash equivalents, marketable securities, current and long-term investments, current and deferred tax amounts 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 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Revenue:
Franchising	$	10,981,800	$	10,486,400	$	30,615,700	$	28,835,100
Leasing	3,810,100		4,312,700		11,348,100		9,989,800
Total revenue	$	14,791,900	$	14,799,100	$	41,963,800	$	38,824,900
Reconciliation to operating income:
Franchising segment contribution	$	6,306,800	$	6,235,900	$	15,981,700	$	15,335,700
Leasing segment contribution	2,234,500		2,227,600		6,296,700		5,000,500
Total operating income	$	8,541,300	$	8,463,500	$	22,278,400	$	20,336,200
Depreciation:
Franchising	$	86,100	$	83,400	$	252,900	$	253,600
Leasing	23,300		23,800		68,500		73,000
Total depreciation	$	109,400	$	107,200	$	321,400	$	326,600

	As of
	September 28, 2013		December 29, 2012
Identifiable assets:
Franchising	$	6,594,700	$	2,957,200
Leasing	40,645,100		37,622,800
Unallocated	2,005,400		2,958,800
Total	$	49,245,200	$	43,538,800