Winmark (WINA) 10-Q 23 Oct 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 29, 2018	Oct. 12, 2018
Document and Entity Information
Entity Registrant Name	WINMARK CORP
Entity Central Index Key	908,315
Document Type	10-Q
Document Period End Date	Sep. 29, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		3,901,202
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 29, 2018	Dec. 30, 2017
Current Assets:
Cash and cash equivalents	$ 1,187,200	$ 1,073,200
Restricted cash	55,000	90,000
Receivables, less allowance for doubtful accounts of $900 and $400	1,756,900	1,796,000
Net investment in leases - current	17,568,700	15,332,300
Income tax receivable		2,161,800
Inventories	128,200	97,100
Prepaid expenses	1,075,400	901,600
Total current assets	21,771,400	21,452,000
Net investment in leases - long-term	26,949,600	25,945,300
Property and equipment, net	725,500	486,800
Goodwill	607,500	607,500
Other assets	440,500	350,400
Total assets	50,494,500	48,842,000
Current Liabilities:
Notes payable, net of unamortized debt issuance costs of $13,900 and $13,900	3,236,100	3,236,100
Accounts payable	1,445,000	2,073,000
Income tax payable	902,800
Accrued liabilities	3,273,000	1,837,300
Discounted lease rentals	2,555,600	570,800
Deferred revenue	1,713,100	1,714,900
Total current liabilities	13,125,600	9,432,100
Long-Term Liabilities:
Line of credit	10,100,000	35,400,000
Notes payable, net of unamortized debt issuance costs of $86,000 and $96,500	26,413,900	28,841,000
Discounted lease rentals	2,364,600	1,121,600
Deferred revenue	8,561,400	8,595,300
Other liabilities	1,211,900	845,000
Deferred income taxes	425,800	320,500
Total long-term liabilities	49,077,600	75,123,400
Shareholders' Equity (Deficit):
Common stock, no par value, 10,000,000 shares authorized, 3,901,202 and 3,843,078 shares issued and outstanding	4,597,400	1,476,200
Retained earnings (accumulated deficit)	(16,306,100)	(37,189,700)
Total shareholders' equity (deficit)	(11,708,700)	(35,713,500)
Total liabilities and shareholders' equity (deficit)	$ 50,494,500	$ 48,842,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 29, 2018	Dec. 30, 2017
CONSOLIDATED CONDENSED BALANCE SHEETS
Receivables, allowance for doubtful accounts	$ 900	$ 400
Unamortized debt issuance costs - Current	13,900	13,900
Unamortized debt issuance costs - Noncurrent	$ 86,000	$ 96,500
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,901,202	3,843,078
Common stock, shares outstanding	3,901,202	3,843,078

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Revenue:
Leasing income	$ 4,608,600	$ 3,915,800	$ 14,994,500	$ 13,722,000
Total revenue	19,118,500	17,730,900	55,439,300	51,971,500
Leasing expense	718,500	792,000	1,769,200	2,724,000
Provision for credit losses	(55,600)	(13,300)	148,400	(26,200)
Selling, general and administrative expenses	6,208,800	6,184,400	19,702,500	19,165,300
Income from operations	11,435,300	10,039,500	31,584,200	28,166,000
Interest expense	(576,900)	(613,900)	(1,978,600)	(1,559,300)
Interest and other income (expense)	(1,000)	28,000	(13,300)	29,900
Income before income taxes	10,857,400	9,453,600	29,592,300	26,636,600
Provision for income taxes	(2,493,100)	(3,593,000)	(7,124,600)	(9,694,500)
Net income	$ 8,364,300	$ 5,860,600	$ 22,467,700	$ 16,942,100
Earnings per share - basic (in dollars per share)	$ 2.15	$ 1.46	$ 5.81	$ 4.10
Earnings per share - diluted (in dollars per share)	$ 2.01	$ 1.36	$ 5.43	$ 3.84
Weighted average shares outstanding - basic	3,886,473	4,024,692	3,864,077	4,131,269
Weighted average shares outstanding - diluted	4,164,339	4,314,412	4,140,816	4,416,185
Royalties
Revenue:
Revenue	$ 12,865,900	$ 12,316,700	$ 35,735,900	$ 33,865,100
Merchandise sales
Revenue:
Revenue	858,400	773,100	2,340,200	2,058,500
Cost of merchandise sold	811,500	728,300	2,235,000	1,942,400
Franchise fees
Revenue:
Revenue	383,300	342,900	1,162,300	1,180,300
Other
Revenue:
Revenue	$ 402,300	$ 382,400	$ 1,206,400	$ 1,145,600

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 8,364,300	$ 5,860,600	$ 22,467,700	$ 16,942,100
Other comprehensive income (loss), before tax:
Unrealized holding net gains (losses) arising during period		(700)		15,900
Other comprehensive income (loss), before tax		(700)		15,900
Income tax (expense) benefit related to items of other comprehensive income:
Unrealized holding net gains/losses arising during period		300		(6,000)
Income tax (expense) benefit related to items of other comprehensive income		300		(6,000)
Other comprehensive income (loss), net of tax		(400)		9,900
Comprehensive income	$ 8,364,300	$ 5,860,200	$ 22,467,700	$ 16,952,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
OPERATING ACTIVITIES:
Net Income	$ 22,467,700	$ 16,942,100
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	233,700	275,700
Provision for credit losses	148,400	(26,200)
Compensation expense related to stock options	1,507,800	1,462,500
Deferred income taxes	105,300	153,400
Gain on sale of marketable securities		(1,400)
Deferred initial direct costs	(1,198,600)	(369,200)
Amortization of deferred initial direct costs	809,500	345,300
Tax benefits on exercised stock options	297,900	592,800
Change in operating assets and liabilities:
Receivables	39,100	(228,900)
Income tax receivable/payable	2,766,700	(630,600)
Inventories	(31,100)	20,500
Prepaid expenses	(173,800)	189,900
Other assets	(90,100)	(18,700)
Accounts payable	(628,000)	(217,400)
Accrued and other liabilities	1,775,800	754,400
Rents received in advance and security deposits	(376,000)	92,800
Deferred revenue	(35,700)	(98,700)
Net cash provided by operating activities	27,618,600	19,238,300
INVESTING ACTIVITIES:
Proceeds from sale of marketable securities		217,200
Purchase of property and equipment	(472,400)	(53,800)
Purchase of equipment for lease contracts	(20,219,800)	(19,253,300)
Principal collections on lease receivables	16,303,500	20,078,100
Net cash provided by (used for) investing activities	(4,388,700)	988,200
FINANCING ACTIVITIES:
Proceeds from borrowings on line of credit	7,300,000	46,900,000
Payments on line of credit	(32,600,000)	(28,400,000)
Proceeds from borrowings on notes payable		12,500,000
Payments on notes payable	(2,437,500)	(1,500,000)
Repurchases of common stock	(558,200)	(49,904,100)
Proceeds from exercises of stock options	2,171,600	1,329,200
Dividends paid	(1,584,100)	(1,343,800)
Proceeds from discounted lease rentals	4,557,300
Net cash used for financing activities	(23,150,900)	(20,418,700)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	79,000	(192,200)
Cash, cash equivalents and restricted cash, beginning of period	1,163,200	1,292,900
Cash, cash equivalents and restricted cash, end of period	$ 1,242,200	$ 1,100,700

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Dislcosures - USD ($)	9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$ 2,015,000	$ 1,349,500
Cash paid for income taxes	3,954,700	9,514,800
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	1,187,200	1,060,700
Restricted cash	55,000	40,000
Total cash, cash equivalents and restricted cash	$ 1,242,200	$ 1,100,700

Management's Interim Financial

Management's Interim Financial Statement Representation:	9 Months Ended
	Sep. 29, 2018
Management's Interim Financial Statement Representation:
Management's Interim Financial Statement Representation:	WINMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. Management’s Interim Financial Statement Representation: The accompanying consolidated condensed financial statements have been prepared by Winmark Corporation and subsidiaries (the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Company has a 52/53 week year which ends on the last Saturday in December. The information in the consolidated condensed financial statements includes normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of such financial statements. The consolidated condensed financial statements and notes are presented in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions for Form 10-Q, and therefore do not contain certain information included in the Company’s annual consolidated financial statements and notes. This report should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K. Revenues and operating results for the nine months ended September 29, 2018 are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Such reclassifications did not impact net income or shareholders’ equity (deficit) as previously reported.

Organization and Business_

Organization and Business:	9 Months Ended
	Sep. 29, 2018
Organization and Business:
Organization and Business:	2. Organization and Business: The Company offers licenses to operate franchises using the service marks Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. The Company uses its Winmark Franchise Partners® mark in connection with its strategic consulting and corporate development activities. The Company also operates both middle market and small-ticket equipment leasing businesses under the Winmark Capital® and Wirth Business Credit® marks.

Recent Accounting Pronouncement

Recent Accounting Pronouncements:	9 Months Ended
	Sep. 29, 2018
Recent Accounting Pronouncements:
Recent Accounting Pronouncements:	3. Recent Accounting Pronouncements: Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , which provides guidance on accounting for leases that supersedes existing lease accounting guidance. The ASU’s core principle is that a lessee should recognize lease assets and lease liabilities for those leases classified as operating leases under existing lease accounting guidance. The new standard also makes targeted changes to lessor accounting. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) , which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. In July 2018, the FASB also issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides an optional transition method that allows entities to elect to apply the standard prospectively at its effective date, versus recasting the prior periods presented. This guidance is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently in the process of evaluating the transition method and impact of the adoption of this ASU on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments , which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This guidance will be effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption of this ASU on the Company’s consolidated financial statements. Recently Adopted Accounting Pronouncements In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows , Restricted Cash which provides guidance on the presentation of restricted cash within an entity’s cash flow statement. The Company adopted ASU 2016-18 in the first quarter of 2018 on a retrospective basis. Restricted cash is now presented with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides guidance for revenue recognition that supersedes existing revenue recognition guidance (but does not apply to nor supersede accounting guidance for lease contracts). The ASU’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted ASU 2014-09 in the first quarter of 2018, using the full retrospective method . The adoption of this guidance did not impact the Company’s recognition of leasing revenues or revenue from royalties that are based on a percentage of franchisee sales. Upon adoption, initial franchise fees, which were previously recognized upon the opening of a franchise, are deferred and recognized over the term of the estimated life of the franchise. The effect of the required deferral of initial franchise fees received in a given year was mitigated by the recognition of revenue from fees retrospectively deferred from prior years. The Company bills and collects marketing fees from its franchisees at various times throughout the year. This amount is included in the Revenue: Other line of the Consolidated Condensed Statements of Operations. Previously, marketing fees were recognized at the time of billing. In accordance with the new guidance, the Company recognizes marketing fee revenue on a straight line basis over the franchise duration. The Company previously recognized commission fees related to franchise agreement contracts as selling expenses when they were incurred. In accordance with the new guidance, the Company capitalizes the commission fees as costs of obtaining a contract and amortizes them over the franchise duration. (See Note 4 – Revenue Recognition: Franchising) Adoption of the standard using the full retrospective method also required the Company to restate certain previously reported results, as shown in the tables below: Condensed Consolidated Statement of Operations: Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated Revenue: Franchise fees $ 317,800 $ 25,100 $ 342,900 $ 1,262,500 $ (82,200) $ 1,180,300 Other 244,500 137,900 382,400 1,033,100 112,500 1,145,600 Selling, general and administrative expenses 6,208,900 (24,500) 6,184,400 19,179,400 (14,100) 19,165,300 Provision for income taxes (3,547,100) (45,900) (3,593,000) (9,683,600) (10,900) (9,694,500) Net income 5,719,000 141,600 5,860,600 16,908,600 33,500 16,942,100 Earnings per share - basic $ 1.42 $ $ 1.46 $ 4.09 $ $ 4.10 Earnings per share - diluted $ 1.33 $ $ 1.36 $ 3.83 $ $ 3.84 Consolidated Balance Sheet: December 30, 2017 As Previously Reported Adjustments As Restated ASSETS Prepaid expenses $ 814,800 $ 86,800 $ 901,600 Other assets — 350,400 350,400 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT): Deferred revenue-Current $ 1,736,200 $ (21,300) $ 1,714,900 Deferred revenue-Long term 1,465,500 7,129,800 8,595,300 Deferred income taxes 1,956,500 (1,636,000) 320,500 Retained earnings (accumulated deficit) (32,154,400) (5,035,300) (37,189,700)

Revenue Recognition_ Franchisin

Revenue Recognition: Franchising	9 Months Ended
	Sep. 29, 2018
Revenue Recognition: Franchising
Revenue Recognition: Franchising	4. Revenue Recognition: Franchising The following is a description of the principal sources of revenue for the company’s franchising segment. The Company’s performance obligations under franchise agreements consist of (a) a franchise license, including a license to use one of our brands, (b) a point-of-sale software license, (c) initial services, such as pre-opening training and marketing support, and (d) ongoing services, such as marketing services and operational support. These performance obligations are highly interrelated so we do not consider them to be individually distinct and therefore account for them under ASC 606 as a single performance obligation, which is satisfied by providing a right to use our intellectual property over the estimated life of the franchise. The disaggregation of the Company’s franchise revenue is presented within the Revenue lines of the Consolidated Condensed Statements of Operations with the amounts included in Revenue: Other delineated below. For more detailed information about reportable segments, see Note 13 – “Segment Reporting”. Royalties The Company collects royalties from each retail franchise based upon a percentage of retail store gross sales. The Company recognizes royalties as revenue when earned. Merchandise Sales Merchandise sales include the sale of point-of-sale technology equipment to franchisees and the sale of a limited amount of sporting goods to certain Play It Again Sports franchisees. Merchandise sales, which includes shipping and handling charges, are recognized at a point in time when the product has been shipped to the franchisee. Sales taxes that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore excluded from merchandise sales. Shipping and handling costs associated with outbound freight are accounted for as a fulfillment cost and included in cost of merchandise sold. Franchise Fees The Company collects initial franchise fees when franchise agreements are signed. The Company recognizes franchise fee revenue over the estimated life of the franchise, beginning with the opening of the franchise, which is when the Company has performed substantially all initial services required by the franchise agreement and the franchisee benefits from the rights afforded by the franchise agreement. Marketing Fees Marketing fee revenue is included in the Revenue: Other line of the Consolidated Condensed Statements of Operations. The Company bills and collects annual marketing fees from its franchisees at various times throughout the year. The Company recognizes marketing fee revenue on a straight line basis over the franchise duration. The Company recognized $0.3 million of marketing fee revenue for each of the three months ended September 29, 2018 and September 30, 2017, and $0.9 million for each of the nine months ended September 29, 2018 and September 30, 2017. Software License Fees Software license fee revenue is included in the Revenue: Other line of the Consolidated Condensed Statements of Operations. The Company bills and collects software license fees from its franchisees when the point-of-sale system is provided to the franchisee. The Company recognizes software license fee revenue on a straight line basis over the franchise duration. The Company recognized $0.1 million of software license fee revenue for each of the three months ended September 29, 2018 and September 30, 2017, and $0.2 million for each of the nine months ended September 29, 2018 and September 30, 2017. Contract Liabilities The Company’s contract liabilities for its franchise revenues consist of deferred revenue associated with franchise fees and software license fees described above. The table below presents the activity of the current and noncurrent deferred franchise revenue during the first nine months of 2018 and 2017, respectively: September 29, 2018 September 30, 2017 Balance at beginning of period $ 10,310,200 $ 10,408,500 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period 1,354,500 1,295,600 Fees earned that were included in the balance at the beginning of the period (1,390,200) (1,394,300) Balance at end of period $ 10,274,500 $ 10,309,800 The following table illustrates future estimated revenue to be recognized for the remainder of 2018 and full fiscal years thereafter related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 29, 2018. Contract Liabilities expected to be recognized in Amount 2018 $ 429,200 2019 1,711,800 2020 1,575,300 2021 1,436,500 2022 1,291,500 Thereafter 3,830,200 $ 10,274,500 Commission Fees The Company capitalizes incremental commission fees paid as a result of obtaining franchise agreement contracts. Capitalized commission fees of $0.5 million and $0.4 million are outstanding at September 29, 2018 and December 30, 2017, respectively and are included in Prepaid expenses and Other assets of the Consolidated Condensed Balance Sheets. Capitalized commission fees are amortized over the life of the franchise and are included in selling, general and administrative expenses. During the three months ended September 29, 2018 and September 30, 2017, the Company recognized $24,800 and $24,800 of commission fee expense, respectively. During the nine months ended September 29, 2018 and September 30, 2017, the Company recognized $73,200 and $74,700 of commission fee expense, respectively.

Fair Value Measurements_

Fair Value Measurements:	9 Months Ended
	Sep. 29, 2018
Fair Value Measurements:
Fair Value Measurements:	5. Fair Value Measurements: The Company defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses three levels of inputs to measure fair value: · Level 1 – quoted prices in active markets for identical assets and liabilities. · Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities. · Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. Due to their nature, the carrying value of cash equivalents, receivables, payables and debt obligations approximates fair value.

Investment in Leasing Operation

Investment in Leasing Operations:	9 Months Ended
	Sep. 29, 2018
Investment in Leasing Operations:
Investment in Leasing Operations:	6. Investment in Leasing Operations: Investment in leasing operations consists of the following: September 29, 2018 December 30, 2017 Direct financing and sales-type leases: Minimum lease payments receivable $ 41,669,100 $ 36,119,700 Estimated residual value of equipment 4,254,200 4,762,700 Unearned lease income net of initial direct costs deferred (7,222,200) (5,371,900) Security deposits (4,112,700) (4,526,000) Equipment installed on leases not yet commenced 10,861,600 10,989,700 Total investment in direct financing and sales-type leases 45,450,000 41,974,200 Allowance for credit losses (969,200) (711,200) Net investment in direct financing and sales-type leases 44,480,800 41,263,000 Operating leases: Operating lease assets 736,800 1,045,400 Less accumulated depreciation and amortization (699,300) (1,030,800) Net investment in operating leases 37,500 14,600 Total net investment in leasing operations $ 44,518,300 $ 41,277,600 As of September 29, 2018, the $44.5 million total net investment in leases consists of $17.6 million classified as current and $26.9 million classified as long-term. As of December 30, 2017, the $41.3 million total net investment in leases consists of $15.3 million classified as current and $26.0 million classified as long-term. As of September 29, 2018, leased assets with two customers approximated 24% and 11%, respectively, of the Company’s total assets. A portion of the lease payments receivable from these customers is assigned as collateral in non-recourse financing with financial institutions. See Note 10 – “Discounted Lease Rentals”. Future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred, is as follows for the remainder of fiscal 2018 and the full fiscal years thereafter as of September 29, 2018: Direct Financing and Sales-Type Leases Operating Leases Minimum Lease Income Minimum Lease Fiscal Year Payments Receivable Amortization Payments Receivable 2018 $ 6,522,300 $ 1,832,900 $ 42,100 2019 23,754,600 4,580,700 76,900 2020 9,623,900 752,700 — 2021 1,742,200 54,000 — 2022 13,700 1,300 — Thereafter 12,400 600 — $ 41,669,100 $ 7,222,200 $ 119,000 The activity in the allowance for credit losses for leasing operations during the first nine months of 2018 and 2017, respectively, is as follows: September 29, 2018 September 30, 2017 Balance at beginning of period $ 711,200 $ 896,000 Provisions charged to expense 148,400 (26,200) Recoveries 210,700 13,800 Deductions for amounts written-off (101,100) — Balance at end of period $ 969,200 $ 883,600 The Company’s investment in direct financing and sales-type leases (“Investment In Leases”) and allowance for credit losses by loss evaluation methodology are as follows: September 29, 2018 December 30, 2017 Investment Allowance for Investment Allowance for In Leases Credit Losses In Leases Credit Losses Collectively evaluated for loss potential $ 45,450,000 $ 969,200 $ 41,974,200 $ 711,200 Individually evaluated for loss potential — — — — Total $ 45,450,000 $ 969,200 $ 41,974,200 $ 711,200 The Company’s key credit quality indicator for its investment in direct financing and sales-type leases is the status of the lease, defined as accruing or non-accrual. Leases that are accruing income are considered to have a lower risk of loss. Non-accrual leases are those that the Company believes have a higher risk of loss. The following table sets forth information regarding the Company’s accruing and non-accrual leases. Delinquent balances are determined based on the contractual terms of the lease. September 29, 2018 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Middle-Market $ 44,145,700 $ — $ — $ — $ 44,145,700 Small-Ticket 1,304,300 — — — 1,304,300 Total Investment in Leases $ 45,450,000 $ — $ — $ — $ 45,450,000 December 30, 2017 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Middle-Market $ 40,657,500 $ 133,700 $ — $ — $ 40,791,200 Small-Ticket 1,183,000 — — — 1,183,000 Total Investment in Leases $ 41,840,500 $ 133,700 $ — $ — $ 41,974,200

Earnings Per Share_

Earnings Per Share:	9 Months Ended
	Sep. 29, 2018
Earnings Per Share:
Earnings Per Share:	7. Earnings Per Share: The following table sets forth the presentation of shares outstanding used in the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Denominator for basic EPS — weighted average common shares 3,886,473 4,024,692 3,864,077 4,131,269 Dilutive shares associated with option plans 277,866 289,720 276,739 284,916 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 4,164,339 4,314,412 4,140,816 4,416,185 Options excluded from EPS calculation — anti-dilutive 6,116 10,753 15,428 16,057

Shareholders' Equity (Deficit)_

Shareholders' Equity (Deficit):	9 Months Ended
	Sep. 29, 2018
Shareholders' Equity (Deficit):
Shareholders' Equity (Deficit):	8. Shareholders’ Equity (Deficit): Dividends On January 24, 2018, the Company’s Board of Directors approved the payment of a $0.11 per share quarterly cash dividend to shareholders of record at the close of business on February 7, 2018, which was paid on March 1, 2018. On April 25, 2018, the Company’s Board of Directors approved the payment of a $0.15 per share quarterly cash dividend to shareholders of record at the close of business on May 9, 2018, which was paid on June 1, 2018. On July 25, 2018, the Company’s Board of Directors approved the payment of a $0.15 per share quarterly cash dividend to shareholders of record at the close of business on August 8, 2018, which was paid on September 4, 2018. Repurchase of Common Stock In the first nine months of 2018 the Company repurchased 3,770 shares of its common stock. Under the Board of Directors’ authorization, as of September 29, 2018, the Company has the ability to repurchase an additional 139,218 shares of its common stock. Repurchases may be made from time to time at prevailing prices, subject to certain restrictions on volume, pricing and timing. Stock Option Plans and Stock-Based Compensation The Company had authorized up to 750,000 shares of common stock be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2001 Stock Option Plan (the “2001 Plan”). The 2001 Plan expired on February 20, 2011. As of September 29, 2018, the Company has authorized up to 700,000 shares of common stock to be reserved for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2010 Stock Option Plan (the “2010 Plan”). The Company also sponsors a Stock Option Plan for Nonemployee Directors (the “Nonemployee Directors Plan”) and has reserved a total of 350,000 shares for issuance to directors of the Company who are not employees. Stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan (collectively, the “Option Plans”) as of September 29, 2018 was as follows: Weighted Average Remaining Number of Weighted Average Contractual Life Shares Exercise Price (years) Intrinsic Value Outstanding, December 30, 2017 658,184 $ 72.33 5.87 $ 37,723,800 Granted 35,000 143.20 Exercised (64,143) 38.53 Forfeited (4,063) 113.95 Outstanding, September 29, 2018 624,978 $ 79.50 5.57 $ 54,061,200 Exercisable, September 29, 2018 450,889 $ 64.15 4.50 $ 45,923,100 The fair value of options granted under the Option Plans during the first nine months of 2018 and 2017 were estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Nine Months Ended September 29, 2018 September 30, 2017 Risk free interest rate 2.73 % % Expected life (years) 6 6 Expected volatility 20.40 % % Dividend yield 1.17 % 1.14 % Option fair value $ 31.44 $ During the nine months ended September 29, 2018, option holders surrendered 2,249 shares of previously owned common shares as payment for options shares exercised as provided for by the Option Plans. All unexercised options at September 29, 2018 have an exercise price equal to the fair market value on the date of the grant. Compensation expense of $1,507,800 and $1,462,500 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first nine months of 2018 and 2017, respectively. As of September 29, 2018, the Company had $3.9 million of total unrecognized compensation expense related to stock options that is expected to be recognized over the remaining weighted average vesting period of approximately 2.3 years.

Debt_

Debt:	9 Months Ended
	Sep. 29, 2018
Debt:
Debt:	9. Debt: Line of Credit As of September 29, 2018, there was $10.1 million in borrowings outstanding under the Company’s revolving credit facility with CIBC Bank USA and BMO Harris Bank N.A. (the “Line of Credit”) bearing interest ranging from 4.16% to 5.25% leaving $39.9 million available for additional borrowings. The Line of Credit has been and will continue to be used for general corporate purposes. The Line of Credit is secured by a lien against substantially all of the Company’s assets, contains customary financial conditions and covenants, and requires maintenance of minimum levels of debt service coverage and tangible net worth and maximum levels of leverage (all as defined within the Line of Credit). As of September 29, 2018, the Company was in compliance with all of its financial covenants. Notes Payable As of September 29, 2018, the Company had $18.5 million in principal outstanding from the $25.0 million Series A notes issued in May 2015 and $11.3 million in principal outstanding from the $12.5 million Series B notes issued in August 2017 under its Note Agreement with Prudential Investment Management, Inc., its affiliates and managed accounts (“Prudential”). The final maturity of the Series A and Series B notes is 10 years from the issuance date. For the Series A notes, interest at a rate of 5.50% per annum on the outstanding principal balance is payable quarterly, along with required prepayments of the principal of $500,000 quarterly for the first five years, and $750,000 quarterly thereafter until the principal is paid in full. For the Series B notes, interest at a rate of 5.10% per annum on the outstanding principal balance is payable quarterly, along with required prepayments of the principal of $312,500 quarterly until the principal is paid in full. The Series A and Series B notes may be prepaid, at the option of the Company, in whole or in part (in a minimum amount of $1.0 million), but prepayments require payment of a Yield Maintenance Amount, as defined in the Note Agreement. The Company’s obligations under the Note Agreement are secured by a lien against substantially all of the Company’s assets (as the notes rank pari passu with the Line of Credit), and the Note Agreement contains customary financial conditions and covenants, and requires maintenance of minimum levels of fixed charge coverage and tangible net worth and maximum levels of leverage (all as defined within the Note Agreement). As of September 29, 2018, the Company was in compliance with all of its financial covenants. In connection with the Note Agreement, the Company incurred debt issuance costs, of which unamortized amounts are presented as a direct deduction from the carrying amount of the related liability.

Discounted Lease Rentals_

Discounted Lease Rentals:	9 Months Ended
	Sep. 29, 2018
Discounted Lease Rentals:
Discounted Lease Rentals:	10. Discounted Lease Rentals: The Company utilized certain lease receivables and underlying equipment as collateral to borrow from financial institutions at a weighted average rate of 6.34% at September 29, 2018 on a non-recourse basis. As of September 29, 2018, $2.6 million of the $4.9 million liability balance is classified as current.

Income Taxes_

Income Taxes:	9 Months Ended
	Sep. 29, 2018
Income Taxes:
Income Taxes:	11. Income Taxes: For the three months ended September 29, 2018 and September 30, 2017, the effective income tax rate was 23.0% and 38.0%, respectively. For the nine months ended September 29, 2018 and September 30, 2017, the effective income tax rate was 24.1% and 36.4%, respectively. The lower effective income tax rates in the 2018 periods when compared to the 2017 periods are primarily due to the enactment of the Tax Cuts and Jobs Act that reduced the federal corporate income tax rate from 35% to 21% beginning in 2018.

Commitments and Contingencies_

Commitments and Contingencies:	9 Months Ended
	Sep. 29, 2018
Commitments and Contingencies:
Commitments and Contingencies:	12. Commitments and Contingencies: In May 2018, the Company entered into an amendment to its lease for its corporate headquarters facility that, among other things, provides for an extension of the lease term for ten years and four months, commencing on September 1, 2019. The Company is obligated to pay rent monthly under the lease, and will pay an estimated $8.0 million in total rental payments over the entire term of the extended period of the lease. The Company is also obligated to pay estimated taxes and operating expenses (which change annually).

Segment Reporting_

Segment Reporting:	9 Months Ended
	Sep. 29, 2018
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, accounts receivable, prepaid expenses, inventory, property and equipment and investment in leasing operations. Unallocated assets include corporate cash and cash equivalents, 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 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue: Franchising $ 14,509,900 $ 13,815,100 $ 40,444,800 $ 38,249,500 Leasing 4,608,600 3,915,800 14,994,500 13,722,000 Total revenue $ 19,118,500 $ 17,730,900 $ 55,439,300 $ 51,971,500 Reconciliation to operating income: Franchising segment contribution $ $ $ $ Leasing segment contribution Total operating income $ 11,435,300 $ 10,039,500 $ 31,584,200 $ 28,166,000 Depreciation and amortization: Franchising $ 60,300 $ 66,300 $ 178,200 $ 211,200 Leasing 18,300 20,700 55,500 64,500 Total depreciation and amortization $ 78,600 $ 87,000 $ 233,700 $ 275,700 As of September 29, 2018 December 30, 2017 Identifiable assets: Franchising $ 4,061,400 $ 4,051,400 Leasing 45,981,600 42,153,600 Unallocated 451,500 2,637,000 Total $ 50,494,500 $ 48,842,000

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements: (Tables)	9 Months Ended
	Sep. 29, 2018
Accounting Standards Update 2014-09
Recent Accounting Pronouncements:
Schedule of previously reported amounts as restated	Condensed Consolidated Statement of Operations: Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated Revenue: Franchise fees $ 317,800 $ 25,100 $ 342,900 $ 1,262,500 $ (82,200) $ 1,180,300 Other 244,500 137,900 382,400 1,033,100 112,500 1,145,600 Selling, general and administrative expenses 6,208,900 (24,500) 6,184,400 19,179,400 (14,100) 19,165,300 Provision for income taxes (3,547,100) (45,900) (3,593,000) (9,683,600) (10,900) (9,694,500) Net income 5,719,000 141,600 5,860,600 16,908,600 33,500 16,942,100 Earnings per share - basic $ 1.42 $ $ 1.46 $ 4.09 $ $ 4.10 Earnings per share - diluted $ 1.33 $ $ 1.36 $ 3.83 $ $ 3.84 Consolidated Balance Sheet: December 30, 2017 As Previously Reported Adjustments As Restated ASSETS Prepaid expenses $ 814,800 $ 86,800 $ 901,600 Other assets — 350,400 350,400 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT): Deferred revenue-Current $ 1,736,200 $ (21,300) $ 1,714,900 Deferred revenue-Long term 1,465,500 7,129,800 8,595,300 Deferred income taxes 1,956,500 (1,636,000) 320,500 Retained earnings (accumulated deficit) (32,154,400) (5,035,300) (37,189,700)

Revenue Recognition_ Franchis_2

Revenue Recognition: Franchising (Tables)	9 Months Ended
	Sep. 29, 2018
Revenue Recognition: Franchising
Schedule of activity of current and noncurrent deferred franchise revenue	September 29, 2018 September 30, 2017 Balance at beginning of period $ 10,310,200 $ 10,408,500 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period 1,354,500 1,295,600 Fees earned that were included in the balance at the beginning of the period (1,390,200) (1,394,300) Balance at end of period $ 10,274,500 $ 10,309,800
Schedule of future estimated revenue to be recognized related to performance obligations	Contract Liabilities expected to be recognized in Amount 2018 $ 429,200 2019 1,711,800 2020 1,575,300 2021 1,436,500 2022 1,291,500 Thereafter 3,830,200 $ 10,274,500

Investment in Leasing Operati_2

Investment in Leasing Operations: (Tables)	9 Months Ended
	Sep. 29, 2018
Investment in Leasing Operations:
Schedule of investment in leasing operations	September 29, 2018 December 30, 2017 Direct financing and sales-type leases: Minimum lease payments receivable $ 41,669,100 $ 36,119,700 Estimated residual value of equipment 4,254,200 4,762,700 Unearned lease income net of initial direct costs deferred (7,222,200) (5,371,900) Security deposits (4,112,700) (4,526,000) Equipment installed on leases not yet commenced 10,861,600 10,989,700 Total investment in direct financing and sales-type leases 45,450,000 41,974,200 Allowance for credit losses (969,200) (711,200) Net investment in direct financing and sales-type leases 44,480,800 41,263,000 Operating leases: Operating lease assets 736,800 1,045,400 Less accumulated depreciation and amortization (699,300) (1,030,800) Net investment in operating leases 37,500 14,600 Total net investment in leasing operations $ 44,518,300 $ 41,277,600
Schedule of future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred	Direct Financing and Sales-Type Leases Operating Leases Minimum Lease Income Minimum Lease Fiscal Year Payments Receivable Amortization Payments Receivable 2018 $ 6,522,300 $ 1,832,900 $ 42,100 2019 23,754,600 4,580,700 76,900 2020 9,623,900 752,700 — 2021 1,742,200 54,000 — 2022 13,700 1,300 — Thereafter 12,400 600 — $ 41,669,100 $ 7,222,200 $ 119,000
Schedule of activity in the allowance for credit losses for leasing operations	September 29, 2018 September 30, 2017 Balance at beginning of period $ 711,200 $ 896,000 Provisions charged to expense 148,400 (26,200) Recoveries 210,700 13,800 Deductions for amounts written-off (101,100) — Balance at end of period $ 969,200 $ 883,600
Schedule of investment in direct financing and sales-type leases (investment in leases) and allowance for credit losses by loss evaluation methodology	September 29, 2018 December 30, 2017 Investment Allowance for Investment Allowance for In Leases Credit Losses In Leases Credit Losses Collectively evaluated for loss potential $ 45,450,000 $ 969,200 $ 41,974,200 $ 711,200 Individually evaluated for loss potential — — — — Total $ 45,450,000 $ 969,200 $ 41,974,200 $ 711,200
Schedule of information regarding accruing and non-accrual leases	September 29, 2018 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Middle-Market $ 44,145,700 $ — $ — $ — $ 44,145,700 Small-Ticket 1,304,300 — — — 1,304,300 Total Investment in Leases $ 45,450,000 $ — $ — $ — $ 45,450,000 December 30, 2017 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Middle-Market $ 40,657,500 $ 133,700 $ — $ — $ 40,791,200 Small-Ticket 1,183,000 — — — 1,183,000 Total Investment in Leases $ 41,840,500 $ 133,700 $ — $ — $ 41,974,200

Earnings Per Share_ (Tables)

Earnings Per Share: (Tables)	9 Months Ended
	Sep. 29, 2018
Earnings Per Share:
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share	Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Denominator for basic EPS — weighted average common shares 3,886,473 4,024,692 3,864,077 4,131,269 Dilutive shares associated with option plans 277,866 289,720 276,739 284,916 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 4,164,339 4,314,412 4,140,816 4,416,185 Options excluded from EPS calculation — anti-dilutive 6,116 10,753 15,428 16,057

Shareholders' Equity (Deficit_2

Shareholders' Equity (Deficit): (Tables)	9 Months Ended
	Sep. 29, 2018
Shareholders' Equity (Deficit):
Schedule of stock option activity	Weighted Average Remaining Number of Weighted Average Contractual Life Shares Exercise Price (years) Intrinsic Value Outstanding, December 30, 2017 658,184 $ 72.33 5.87 $ 37,723,800 Granted 35,000 143.20 Exercised (64,143) 38.53 Forfeited (4,063) 113.95 Outstanding, September 29, 2018 624,978 $ 79.50 5.57 $ 54,061,200 Exercisable, September 29, 2018 450,889 $ 64.15 4.50 $ 45,923,100
Schedule of weighted average assumptions used in estimation of fair value of options granted	Nine Months Ended September 29, 2018 September 30, 2017 Risk free interest rate 2.73 % % Expected life (years) 6 6 Expected volatility 20.40 % % Dividend yield 1.17 % 1.14 % Option fair value $ 31.44 $

Segment Reporting_ (Tables)

Segment Reporting: (Tables)	9 Months Ended
	Sep. 29, 2018
Segment Reporting:
Schedule of financial information by segment and reconciliation of segment contribution to operating income	Three Months Ended Nine Months Ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Revenue: Franchising $ 14,509,900 $ 13,815,100 $ 40,444,800 $ 38,249,500 Leasing 4,608,600 3,915,800 14,994,500 13,722,000 Total revenue $ 19,118,500 $ 17,730,900 $ 55,439,300 $ 51,971,500 Reconciliation to operating income: Franchising segment contribution $ $ $ $ Leasing segment contribution Total operating income $ 11,435,300 $ 10,039,500 $ 31,584,200 $ 28,166,000 Depreciation and amortization: Franchising $ 60,300 $ 66,300 $ 178,200 $ 211,200 Leasing 18,300 20,700 55,500 64,500 Total depreciation and amortization $ 78,600 $ 87,000 $ 233,700 $ 275,700 As of September 29, 2018 December 30, 2017 Identifiable assets: Franchising $ 4,061,400 $ 4,051,400 Leasing 45,981,600 42,153,600 Unallocated 451,500 2,637,000 Total $ 50,494,500 $ 48,842,000

Management's Interim Financia_2

Management's Interim Financial Statement Representation: (Details)	9 Months Ended
	Sep. 29, 2018item
Minimum
Number of Weeks in Fiscal Year	52
Maximum
Number of Weeks in Fiscal Year	53

Recent Accounting Pronounceme_3

Recent Accounting Pronouncements: ASU 2014-09 (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Consolidated Statement of Operations
Selling, general and administrative expenses	$ 6,208,800	$ 6,184,400	$ 19,702,500	$ 19,165,300
Provision for income taxes	(2,493,100)	(3,593,000)	(7,124,600)	(9,694,500)
Net Income	$ 8,364,300	$ 5,860,600	$ 22,467,700	$ 16,942,100
Earnings per share - basic (in dollars per share)	$ 2.15	$ 1.46	$ 5.81	$ 4.10
Earnings per share - diluted (in dollars per share)	$ 2.01	$ 1.36	$ 5.43	$ 3.84
ASSETS
Prepaid expenses	$ 1,075,400		$ 1,075,400		$ 901,600
Other assets	440,500		440,500		350,400
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Deferred revenue - Current	1,713,100		1,713,100		1,714,900
Deferred revenue - Long term	8,561,400		8,561,400		8,595,300
Deferred income taxes	425,800		425,800		320,500
Retained earnings (accumulated deficit)	(16,306,100)		(16,306,100)		(37,189,700)
Franchise fees
Consolidated Statement of Operations
Revenue	383,300	$ 342,900	1,162,300	$ 1,180,300
Other
Consolidated Statement of Operations
Revenue	$ 402,300	382,400	$ 1,206,400	1,145,600
As Previously Reported
Consolidated Statement of Operations
Selling, general and administrative expenses		6,208,900		19,179,400
Provision for income taxes		(3,547,100)		(9,683,600)
Net Income		$ 5,719,000		$ 16,908,600
Earnings per share - basic (in dollars per share)		$ 1.42		$ 4.09
Earnings per share - diluted (in dollars per share)		$ 1.33		$ 3.83
ASSETS
Prepaid expenses					814,800
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Deferred revenue - Current					1,736,200
Deferred revenue - Long term					1,465,500
Deferred income taxes					1,956,500
Retained earnings (accumulated deficit)					(32,154,400)
As Previously Reported | Franchise fees
Consolidated Statement of Operations
Revenue		$ 317,800		$ 1,262,500
As Previously Reported | Other
Consolidated Statement of Operations
Revenue		244,500		1,033,100
Adjustments
Consolidated Statement of Operations
Selling, general and administrative expenses		(24,500)		(14,100)
Provision for income taxes		(45,900)		(10,900)
Net Income		$ 141,600		$ 33,500
Earnings per share - basic (in dollars per share)		$ 0.04		$ 0.01
Earnings per share - diluted (in dollars per share)		$ 0.03		$ 0.01
ASSETS
Prepaid expenses					86,800
Other assets					350,400
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Deferred revenue - Current					(21,300)
Deferred revenue - Long term					7,129,800
Deferred income taxes					(1,636,000)
Retained earnings (accumulated deficit)					$ (5,035,300)
Adjustments | Franchise fees
Consolidated Statement of Operations
Revenue		$ 25,100		$ (82,200)
Adjustments | Other
Consolidated Statement of Operations
Revenue		$ 137,900		$ 112,500

Revenue Recognition_ Franchis_3

Revenue Recognition: Franchising - Other (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Marketing Fees
Revenue recognition
Revenue	$ 0.3	$ 0.3	$ 0.9	$ 0.9
Software License Fees
Revenue recognition
Revenue	$ 0.1	$ 0.1	$ 0.2	$ 0.2

Revenue Recognition_ Franchis_4

Revenue Recognition: Franchising - Contract Liabilities (Details) - USD ($)	9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Revenue Recognition: Franchising
Balance at beginning of period	$ 10,310,200	$ 10,408,500
Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period	1,354,500	1,295,600
Fees earned that were included in the balance at the beginning of the period	(1,390,200)	(1,394,300)
Balance at end of period	$ 10,274,500	$ 10,309,800

Revenue Recognition_ Franchis_5

Revenue Recognition: Franchising - Performance Obligations (Details)	9 Months Ended
	Sep. 29, 2018USD ($)
Revenue Recognition: Franchising
Revenue, remaining peformance obligation	$ 10,274,500
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-30
Revenue Recognition: Franchising
Revenue, remaining peformance obligation	$ 429,200
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-30
Revenue Recognition: Franchising
Revenue, remaining peformance obligation	$ 1,711,800
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29
Revenue Recognition: Franchising
Revenue, remaining peformance obligation	$ 1,575,300
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-27
Revenue Recognition: Franchising
Revenue, remaining peformance obligation	$ 1,436,500
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-26
Revenue Recognition: Franchising
Revenue, remaining peformance obligation	$ 1,291,500
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue Recognition: Franchising
Revenue, remaining peformance obligation	$ 3,830,200
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation

Revenue Recognition_ Franchis_6

Revenue Recognition: Franchising - Commission Fees (Details) - Commission Fees - USD ($)	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Commission Fees
Capitalized contract costs	$ 500,000		$ 500,000		$ 400,000
Expense	$ 24,800	$ 24,800	$ 73,200	$ 74,700

Investment in Leasing Operati_3

Investment in Leasing Operations: Summary of Leasing Operations (Details) - USD ($)	Sep. 29, 2018	Dec. 30, 2017
Direct financing and sales-type leases:
Minimum lease payments receivable	$ 41,669,100	$ 36,119,700
Estimated residual value of equipment	4,254,200	4,762,700
Unearned lease income net of initial direct costs deferred	(7,222,200)	(5,371,900)
Security deposits	(4,112,700)	(4,526,000)
Equipment installed on leases not yet commenced	10,861,600	10,989,700
Total investment in direct financing and sales-type leases	45,450,000	41,974,200
Allowance for credit losses	(969,200)	(711,200)
Net investment in direct financing and sales-type leases	44,480,800	41,263,000
Operating leases:
Operating lease assets	736,800	1,045,400
Less accumulated depreciation and amortization	(699,300)	(1,030,800)
Net investment in operating leases	37,500	14,600
Total net investment in leasing operations	44,518,300	41,277,600
Net investment in leases - current	17,568,700	15,332,300
Net investment in leases - long-term	$ 26,949,600	$ 25,945,300

Investment in Leasing Operati_4

Investment in Leasing Operations: Risk Concentration (Details) - Total assets	9 Months Ended
	Sep. 29, 2018customer
Investment in leasing operations
Number of customers	2
Customer One Concentration Risk
Investment in leasing operations
Percentage of concentration risk	24.00%
Customer Two Concentration Risk
Investment in leasing operations
Percentage of concentration risk	11.00%

Investment in Leasing Operati_5

Investment in Leasing Operations: Minimum Lease Payments Receivable (Details) - USD ($)	Sep. 29, 2018	Dec. 30, 2017
Direct Financing and Sales-Type Leases, Minimum Lease Payments Receivable
2,018	$ 6,522,300
2,019	23,754,600
2,020	9,623,900
2,021	1,742,200
2,022	13,700
Thereafter	12,400
Total	41,669,100	$ 36,119,700
Direct Financing and Sales-Type Leases, Income Amortization
2,018	1,832,900
2,019	4,580,700
2,020	752,700
2,021	54,000
2,022	1,300
Thereafter	600
Total	7,222,200
Operating Leases, Minimum Lease Payments Receivable
2,018	42,100
2,019	76,900
Total	$ 119,000

Investment in Leasing Operati_6

Investment in Leasing Operations: Credit Losses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Activity in the allowance for credit losses for leasing operations
Balance at beginning of period			$ 711,200	$ 896,000
Provision for credit losses	$ (55,600)	$ (13,300)	148,400	(26,200)
Recoveries			210,700	13,800
Deductions for amounts written-off			(101,100)
Balance at end of period	969,200	$ 883,600	969,200	$ 883,600
Investment In Leases
Total investment in direct financing and sales-type leases	45,450,000		45,450,000		$ 41,974,200
Allowance for Credit Losses
Total	969,200		969,200		711,200
Investment in leases
Investment In Leases
Collectively evaluated for loss potential	45,450,000		45,450,000		41,974,200
Total investment in direct financing and sales-type leases	45,450,000		45,450,000		41,974,200
Allowance for Credit Losses
Collectively evaluated for loss potential	969,200		969,200		711,200
Total	$ 969,200		$ 969,200		$ 711,200

Investment in Leasing Operati_7

Investment in Leasing Operations: Investment Aging (Details) - USD ($)	Sep. 29, 2018	Dec. 30, 2017
Investment in leasing operations
0-60 Days Delinquent and Accruing	$ 45,450,000	$ 41,840,500
61-90 Days Delinquent and Accruing		133,700
Total investment in direct financing and sales-type leases	45,450,000	41,974,200
Middle-Market
Investment in leasing operations
0-60 Days Delinquent and Accruing	44,145,700	40,657,500
61-90 Days Delinquent and Accruing		133,700
Total investment in direct financing and sales-type leases	44,145,700	40,791,200
Small-Ticket
Investment in leasing operations
0-60 Days Delinquent and Accruing	1,304,300	1,183,000
Total investment in direct financing and sales-type leases	$ 1,304,300	$ 1,183,000

Earnings Per Share_ (Details)

Earnings Per Share: (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Earnings Per Share:
Denominator for basic EPS - weighted average common shares	3,886,473	4,024,692	3,864,077	4,131,269
Dilutive shares associated with option plans	277,866	289,720	276,739	284,916
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares	4,164,339	4,314,412	4,140,816	4,416,185
Options excluded from EPS calculation - anti-dilutive (in shares)	6,116	10,753	15,428	16,057

Shareholders' Equity (Deficit_3

Shareholders' Equity (Deficit): Dividends and Repurchase of Common Stock (Details) - $ / shares	Jul. 25, 2018	Apr. 25, 2018	Jan. 24, 2018	Sep. 29, 2018
Dividends
Cash dividends declared and paid (in dollars per share)	$ 0.15	$ 0.15	$ 0.11
Common Stock Repurchase Program
Repurchase of Common Stock
Number of shares repurchased				3,770
Number of additional shares that can be repurchased				139,218

Shareholders' Equity (Deficit_4

Shareholders' Equity (Deficit): Stock Option Plans and Stock-Based Compensation (Details) - Stock options - USD ($)	9 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017	Feb. 20, 2011
Number of Shares
Outstanding at the beginning of the period (in shares)	658,184
Granted (in shares)	35,000
Exercised (in shares)	(64,143)
Forfeited (in shares)	(4,063)
Outstanding at the end of the period (in shares)	624,978		658,184
Exercisable at the end of the period (in shares)	450,889
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 72.33
Granted (in dollars per share)	143.20
Exercised (in dollars per share)	38.53
Forfeited (in dollars per share)	113.95
Outstanding at the end of the period (in dollars per share)	79.50		$ 72.33
Exercisable at the end of the period (in dollars per share)	$ 64.15
Weighted Average Remaining Contractual Life (years)
Outstanding	5 years 6 months 26 days		5 years 10 months 13 days
Exercisable at the end of the period	4 years 6 months
Intrinsic Value
Outstanding	$ 54,061,200		$ 37,723,800
Exercisable at the end of the period	$ 45,923,100
Weighted average assumptions and results used in estimation of fair value of options granted
Risk free interest rate (as a percent)	2.73%	1.90%
Expected life (years)	6 years	6 years
Expected volatility (as a percent)	20.40%	26.93%
Dividend yield (as a percent)	1.17%	1.14%
Option fair value (in dollars per share)	$ 31.44	$ 31.38
Additional disclosures
Shares of previously owned common stock surrendered as payment for option shares exercised	2,249
Compensation expense	$ 1,507,800	$ 1,462,500
Total unrecognized compensation expense	$ 3,900,000
Weighted average period for recognition of unrecognized compensation expense	2 years 3 months 18 days
2001 Plan
Stock Option Plans
Number of shares authorized for issuance				750,000
2010 Plan
Stock Option Plans
Number of shares authorized for issuance	700,000
Nonemployee Directors Plan
Stock Option Plans
Number of shares authorized for issuance	350,000

Debt_ Line of Credit (Details)

Debt: Line of Credit (Details) - Line of Credit $ in Millions	Sep. 29, 2018USD ($)
Line of Credit
Borrowings outstanding	$ 10.1
Line of credit available for additional borrowings	$ 39.9
Minimum
Line of Credit
Interest rate (as a percent)	4.16%
Maximum
Line of Credit
Interest rate (as a percent)	5.25%

Debt_ Notes Payable (Details)

Debt: Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Aug. 31, 2017	May 31, 2015
Notes Payable
Proceeds from the Note Agreement		$ 12,500,000
Notes Payable | Prudential Investment Management, Inc
Notes Payable
Minimum prepayment	$ 1,000,000
Series A Notes | Prudential Investment Management, Inc
Notes Payable
Principal amount outstanding	$ 18,500,000
Note payable, face amount				$ 25,000,000
Term of notes payable	10 years
Interest rate (as a percent)	5.50%
Quarterly principal payment, first five years	$ 500,000
Quarterly principal payment, thereafter	750,000
Series B Notes | Prudential Investment Management, Inc
Notes Payable
Principal amount outstanding	$ 11,300,000
Note payable, face amount			$ 12,500,000
Term of notes payable	10 years
Interest rate (as a percent)	5.10%
Quarterly principal payment	$ 312,500

Discounted Lease Rentals_ (Deta

Discounted Lease Rentals: (Details) - USD ($)	Sep. 29, 2018	Dec. 30, 2017
Discounted Lease Rentals
Discounted lease rentals, current	$ 2,555,600	$ 570,800
Discounted lease rentals	$ 4,900,000
Secured Debt
Discounted Lease Rentals
Weighted average interest rate on a non-recourse basis (as a percent)	6.34%

Income Taxes_ (Details)

Income Taxes: (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Income Taxes:
Effective tax rate (as a percent)	23.00%	38.00%	24.10%	36.40%
Corporate income tax rate (as a percent)			21.00%		35.00%

Commitments and Contingencies_

Commitments and Contingencies: (Details) - Lease Amendment, May 2018 - Scenario, Forecast $ in Millions	Sep. 01, 2019USD ($)
Commitments and Contingencies:
Term of lease	10 years 4 months
Estimated total rental payments over the entire term of the extended lease period	$ 8

Segment Reporting_ (Details)

Segment Reporting: (Details)	3 Months Ended		9 Months Ended
	Sep. 29, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 29, 2018USD ($)item	Sep. 30, 2017USD ($)	Dec. 30, 2017USD ($)
Segment Reporting
Number of reportable business segments | item			2
Total revenue	$ 19,118,500	$ 17,730,900	$ 55,439,300	$ 51,971,500
Total operating income	11,435,300	10,039,500	31,584,200	28,166,000
Total depreciation and amortization	78,600	87,000	233,700	275,700
Total identifiable assets	50,494,500		50,494,500		$ 48,842,000
Operating | Franchising
Segment Reporting
Total revenue	14,509,900	13,815,100	40,444,800	38,249,500
Total operating income	9,064,900	8,332,900	23,264,900	21,544,600
Total depreciation and amortization	60,300	66,300	178,200	211,200
Total identifiable assets	4,061,400		4,061,400		4,051,400
Operating | Leasing
Segment Reporting
Total revenue	4,608,600	3,915,800	14,994,500	13,722,000
Total operating income	2,370,400	1,706,600	8,319,300	6,621,400
Total depreciation and amortization	18,300	$ 20,700	55,500	$ 64,500
Total identifiable assets	45,981,600		45,981,600		42,153,600
Unallocated
Segment Reporting
Total identifiable assets	$ 451,500		$ 451,500		$ 2,637,000