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 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 2015, 2014 and 2013 were 52-week fiscal years.

Following is a summary of our franchising activity for the fiscal year ended December 26, 2015:

	12/27/14	OPENED	CLOSED		12/26/15
Plato’s Closet
Franchises - US and Canada	426	31	(1	)	456
Once Upon A Child
Franchises - US and Canada	308	20	(2	)	326
Play It Again Sports
Franchises - US and Canada	301	7	(11	)	297
Style Encore
Franchises - US	24	14	(0	)	38
Music Go Round
Franchises - US	33	1	(1	)	33

Total Franchised Stores	1,092	73	(15	)	1,150