Segment Reporting:

9 Months Ended

Sep. 24, 2016

Segment Reporting:

Segment Reporting:

10.  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, prepaid expenses, 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				Nine Months Ended
	September 24, 2016		September 26, 2015		September 24, 2016		September 26, 2015
Revenue:
Franchising	$	12,560,300	$	12,752,500	$	36,375,400	$	35,580,400
Leasing		4,174,000		3,247,000		12,839,000		16,919,900
Total revenue	$	16,734,300	$	15,999,500	$	49,214,400	$	52,500,300
Reconciliation to operating income:
Franchising segment contribution	$	8,058,800	$	7,827,500	$	20,833,600	$	19,679,000
Leasing segment contribution		2,379,200		1,514,300		6,966,100		7,721,100
Total operating income	$	10,438,000	$	9,341,800	$	27,799,700	$	27,400,100
Depreciation:
Franchising	$	79,700	$	85,900	$	248,200	$	255,800
Leasing		23,600		22,700		72,400		67,000
Total depreciation	$	103,300	$	108,600	$	320,600	$	322,800

	As of
	September 24, 2016		December 26, 2015
Identifiable assets:
Franchising	$	3,538,000	$	3,100,900
Leasing		38,089,000		39,687,400
Unallocated		1,868,700		4,618,000
Total	$	43,495,700	$	47,406,300