Segment Reporting:

6 Months Ended

Jun. 27, 2020

Segment Reporting:

Segment Reporting:

13. 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, restricted cash, accounts receivable, prepaid expenses, inventory, property and equipment, investment in leasing operations and goodwill. Unallocated assets include corporate cash and cash equivalents, current and deferred tax amounts, operating lease right of use assets 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 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Revenue:
Franchising	$	8,915,700	$	14,201,200	$	21,644,500	$	27,377,100
Leasing		3,473,800		3,203,000		9,345,000		8,358,300
Total revenue	$	12,389,500	$	17,404,200	$	30,989,500	$	35,735,400
Reconciliation to operating income:
Franchising segment contribution	$	4,599,700	$	8,450,800	$	11,811,100	$	15,948,800
Leasing segment contribution		2,078,100		1,396,100		4,968,500		3,964,600
Total operating income	$	6,677,800	$	9,846,900	$	16,779,600	$	19,913,400
Depreciation and amortization:
Franchising	$	72,700	$	67,400	$	145,300	$	129,900
Leasing		50,200		18,500		100,700		36,100
Total depreciation and amortization	$	122,900	$	85,900	$	246,000	$	166,000

	As of
	June 27, 2020		December 28, 2019
Identifiable assets:
Franchising	$	4,405,700	$	3,736,000
Leasing		19,834,200		26,596,700
Unallocated		7,386,500		31,509,500
Total	$	31,626,400	$	61,842,200