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 year 2016 was a 53-week fiscal year, while 2015 and 2014 were 52-week fiscal years.

Following is a summary of our franchising activity for the fiscal year ended December 31, 2016:


	12/26/2015	OPENED	CLOSED	12/31/2016
Plato’s Closet
Franchises - US and Canada	456	17	(5)	468
Once Upon A Child
Franchises - US and Canada	326	25	(3)	348
Play It Again Sports
Franchises - US and Canada	297	2	(16)	283
Style Encore
Franchises - US	38	15	(1)	52
Music Go Round
Franchises - US	33	2	—	35
Total Franchised Stores	1,150	61	(25)	1,186