Segment Reporting:

6 Months Ended

Jul. 01, 2017

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 as well as provides strategic consulting services related to franchising. 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				Six Months Ended
	July 1, 2017		June 25, 2016		July 1, 2017		June 25, 2016
Revenue:
Franchising	$	12,802,900	$	12,147,500	$	24,567,100	$	23,815,100
Leasing		3,946,600		4,152,300		9,806,200		8,665,000
Total revenue	$	16,749,500	$	16,299,800	$	34,373,300	$	32,480,100
Reconciliation to operating income:
Franchising segment contribution	$	7,212,300	$	6,865,100	$	13,354,800	$	12,774,800
Leasing segment contribution		1,921,900		2,458,000		4,914,800		4,586,900
Total operating income	$	9,134,200	$	9,323,100	$	18,269,600	$	17,361,700
Depreciation and amortization:
Franchising	$	69,100	$	83,700	$	144,900	$	168,500
Leasing		21,100		24,400		43,800		48,800
Total depreciation and amortization	$	90,200	$	108,100	$	188,700	$	217,300

	As of
	July 1, 2017		December 31, 2016
Identifiable assets:
Franchising	$	3,041,100	$	3,141,300
Leasing		41,758,100		42,735,600
Unallocated		2,239,200		2,704,700
Total	$	47,038,400	$	48,581,600