Segment Reporting:

6 Months Ended

Jun. 28, 2014

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 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				Six Months Ended
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Revenue:
Franchising	$	10,881,300	$	9,893,300	$	21,058,300	$	19,633,900
Leasing	3,157,600		4,130,200		7,533,200		7,538,000
Total revenue	$	14,038,900	$	14,023,500	$	28,591,500	$	27,171,900
Reconciliation to operating income:
Franchising segment contribution	$	5,311,200	$	4,840,800	$	10,012,400	$	9,674,900
Leasing segment contribution	1,781,400		2,220,400		4,514,700		4,062,200
Total operating income	$	7,092,600	$	7,061,200	$	14,527,100	$	13,737,100
Depreciation:
Franchising	$	76,600	$	82,600	$	159,700	$	166,800
Leasing	20,500		22,400		42,700		45,200
Total depreciation	$	97,100	$	105,000	$	202,400	$	212,000

	As of
	June 28, 2014		December 28, 2013
Identifiable assets:
Franchising	$	3,265,500	$	7,407,400
Leasing	44,228,100		42,490,800
Unallocated	3,221,800		3,137,900
Total	$	50,715,400	$	53,036,100