WINMARK CORP Segments Disclosure
13. Segment Reporting:
The Company currently has one reportable business segment, franchising, and one non-reportable operating segment. The franchising segment franchises value-oriented retail store concepts that buy, sell and trade merchandise. The non-reportable operating segment includes the Company’s equipment leasing 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 CODM is its Chief Executive Officer. Our CODM primarily reviews revenue and income from operations for purposes of allocating resources and evaluating financial performance. Expenses are reviewed on a consolidated basis. The Company’s internal management reporting is the basis for the information disclosed for its operating segments. The following tables summarize financial information by segment and provide a reconciliation of segment contribution to income from operations:
Year ended |
| |||||||||
| December 27, 2025 | | December 28, 2024 | | December 30, 2023 |
| ||||
Revenue: | ||||||||||
Franchising | $ | 83,423,900 | $ | 79,477,300 | $ | 78,477,300 | ||||
Other |
| 2,631,800 |
| 1,811,800 |
| 4,766,200 | ||||
Total revenue | $ | 86,055,700 | $ | 81,289,100 | $ | 83,243,500 | ||||
Franchising segment operating expenses: | ||||||||||
Merchandise COGS | $ | 3,104,400 | $ | 3,379,200 | $ | 4,461,500 | ||||
Selling, general and administrative expenses | 28,262,100 | 24,504,800 | 24,639,900 | |||||||
Total franchising segment expenses | $ | 31,366,500 | $ | 27,884,000 | $ | 29,101,400 | ||||
Reconciliation to operating income: | ||||||||||
Franchising segment income from operations | $ | 52,057,400 | $ | 51,593,300 | $ | 49,375,900 | ||||
Other operating segment income from operations |
| 2,536,500 |
| 1,337,300 |
| 3,904,700 | ||||
Total income from operations | $ | 54,593,900 | $ | 52,930,600 | $ | 53,280,600 | ||||
Depreciation and amortization: | ||||||||||
Franchising | $ | 746,700 | $ | 715,500 | $ | 646,900 | ||||
Other |
| — |
| 83,800 |
| 125,800 | ||||
Total depreciation and amortization | $ | 746,700 | $ | 799,300 | $ | 772,700 | ||||
As of | ||||||
| December 27, 2025 | | December 28, 2024 | |||
Identifiable assets: | ||||||
Franchising | $ | 7,457,700 | $ | 7,289,500 | ||
Other |
| — |
| 19,400 | ||
Unallocated |
| 17,426,400 |
| 19,535,600 | ||
Total | $ | 24,884,100 | $ | 26,844,500 | ||
Revenues are all generated from United States operations other than franchising revenues from Canadian operations of $7.8 million, $7.3 million and $6.8 million in each of fiscal 2025, 2024 and 2023, respectively. All long-lived assets are located within the United States.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 8, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.