Winmark (WINA) 10-Q 26 Apr 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 30, 2019	Apr. 19, 2019
Document and Entity Information
Entity Registrant Name	WINMARK CORP
Entity Central Index Key	0000908315
Document Type	10-Q
Document Period End Date	Mar. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-28
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		3,761,686
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 30, 2019	Dec. 29, 2018
Current Assets:
Cash and cash equivalents	$ 1,066,800	$ 2,496,000
Restricted cash	65,000	80,000
Receivables, less allowance for doubtful accounts of $1,700 and $400	1,455,500	1,553,100
Net investment in leases - current	17,321,500
Net investment in leases - current		18,547,500
Income tax receivable		565,500
Inventories	113,800	107,600
Prepaid expenses	954,100	901,600
Total current assets	20,976,700	24,251,300
Net investment in leases - long-term	17,786,000
Net investment in leases - long-term		20,455,500
Property and equipment, net	908,800	866,200
Operating lease right-of-use assets	6,056,100
Goodwill	607,500	607,500
Other assets	496,700	482,600
Total assets	46,831,800	46,663,100
Current Liabilities:
Notes payable, net of unamortized debt issuance costs of $13,900 and $13,900	3,236,100	3,236,100
Accounts payable	1,717,800	1,351,800
Income tax payable	1,664,700
Accrued liabilities	2,669,100	3,128,600
Discounted lease rentals	3,070,700	3,021,900
Deferred revenue	1,750,700	1,744,900
Total current liabilities	14,109,100	12,483,300
Long-Term Liabilities:
Line of credit	11,500,000
Notes payable, net of unamortized debt issuance costs of $79,100 and $82,600	24,795,900	25,604,900
Discounted lease rentals	1,937,300	2,723,500
Deferred revenue	8,247,900	8,432,400
Operating lease liabilities	5,823,000
Other liabilities	764,800	1,079,200
Deferred income taxes	1,148,900	1,148,300
Total long-term liabilities	54,217,800	38,988,300
Shareholders' Equity (Deficit):
Common stock, no par value, 10,000,000 shares authorized, 3,759,186 and 3,907,686 shares issued and outstanding		4,425,600
Retained earnings (accumulated deficit)	(21,495,100)	(9,234,100)
Total shareholders' equity (deficit)	(21,495,100)	(4,808,500)
Total liabilities and shareholders' equity (deficit)	$ 46,831,800	$ 46,663,100

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 30, 2019	Dec. 29, 2018
CONSOLIDATED CONDENSED BALANCE SHEETS
Receivables, allowance for doubtful accounts	$ 1,700	$ 400
Unamortized debt issuance costs - Current	13,900	13,900
Unamortized debt issuance costs - Noncurrent	$ 79,100	$ 82,600
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,759,186	3,907,686
Common stock, shares outstanding	3,759,186	3,907,686

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Revenue:
Leasing income	$ 5,155,300
Leasing income		$ 5,528,800
Total revenue	18,331,200	18,161,000
Leasing expense	698,700	554,900
Provision for credit losses	10,100	95,000
Selling, general and administrative expenses	6,984,400	6,694,400
Income from operations	10,066,500	10,074,200
Interest expense	(442,200)	(743,800)
Interest and other income (expense)	(300)	(1,000)
Income before income taxes	9,624,000	9,329,400
Provision for income taxes	(2,351,800)	(2,369,000)
Net income	$ 7,272,200	$ 6,960,400
Earnings per share - basic (in dollars per share)	$ 1.86	$ 1.81
Earnings per share - diluted (in dollars per share)	$ 1.73	$ 1.69
Weighted average shares outstanding - basic	3,906,895	3,847,312
Weighted average shares outstanding - diluted	4,198,454	4,124,573
Royalties
Revenue:
Revenue	$ 11,761,400	$ 11,049,000
Merchandise sales
Revenue:
Revenue	611,000	776,900
Cost of merchandise sold	571,500	742,500
Franchise fees
Revenue:
Revenue	391,800	400,900
Other
Revenue:
Revenue	$ 411,700	$ 405,400

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock	Retained Earnings (Accumulated Deficit)	Total
BALANCE at Dec. 30, 2017	$ 1,476,200	$ (37,189,700)	$ (35,713,500)
BALANCE (in shares) at Dec. 30, 2017	3,843,078
Shareholders’ Equity (Deficit)
Stock options exercised	$ 48,400		48,400
Stock options exercised (in shares)	6,428
Compensation expense relating to stock options	$ 490,800		490,800
Cash dividends		(423,200)	(423,200)
Comprehensive income (Net income)		6,960,400	6,960,400
BALANCE at Mar. 31, 2018	$ 2,015,400	(30,652,500)	(28,637,100)
BALANCE (in shares) at Mar. 31, 2018	3,849,506
BALANCE at Dec. 29, 2018	$ 4,425,600	(9,234,100)	$ (4,808,500)
BALANCE (in shares) at Dec. 29, 2018	3,907,686		3,907,686
Shareholders’ Equity (Deficit)
Repurchase of common stock	$ (5,081,000)	(18,947,100)	$ (24,028,100)
Repurchase of common stock (in shares)	(150,000)
Stock options exercised	$ 156,600		156,600
Stock options exercised (in shares)	1,500
Compensation expense relating to stock options	$ 498,800		498,800
Cash dividends		(586,100)	(586,100)
Comprehensive income (Net income)		7,272,200	7,272,200
BALANCE at Mar. 30, 2019		$ (21,495,100)	$ (21,495,100)
BALANCE (in shares) at Mar. 30, 2019	3,759,186		3,759,186

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
OPERATING ACTIVITIES:
Net Income	$ 7,272,200	$ 6,960,400
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	80,100	75,800
Provision for credit losses	10,100	95,000
Compensation expense related to stock options	498,800	490,800
Deferred income taxes	600
Deferred initial direct costs	(14,200)	(979,800)
Amortization of deferred initial direct costs	209,500	299,700
Operating lease right of use asset amortization	102,300
Tax benefits on exercised stock options	12,100
Change in operating assets and liabilities:
Receivables	97,600	203,200
Principal collections on lease receivables	4,662,800
Income tax receivable/payable	2,218,100	2,192,900
Inventories	(6,200)	17,400
Prepaid expenses	(52,500)	248,300
Other assets	(14,100)	(47,800)
Accounts payable	366,000	(5,400)
Accrued and other liabilities	(1,105,000)	774,400
Rents received in advance and security deposits	6,500	(38,700)
Deferred revenue	(178,700)	12,700
Net cash provided by operating activities	14,166,000	10,298,900
INVESTING ACTIVITIES:
Purchase of property and equipment	(122,700)	(170,200)
Purchase of equipment for lease contracts	(1,717,400)	(6,196,800)
Principal collections on lease receivables		5,881,000
Net cash used for investing activities	(1,840,100)	(486,000)
FINANCING ACTIVITIES:
Proceeds from borrowings on line of credit	14,000,000
Payments on line of credit	(2,500,000)	(10,800,000)
Payments on notes payable	(812,500)	(812,500)
Repurchases of common stock	(24,028,100)
Proceeds from exercises of stock options	156,600	48,400
Dividends paid	(586,100)	(423,200)
Proceeds from discounted lease rentals		2,916,800
Net cash used for financing activities	(13,770,100)	(9,070,500)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(1,444,200)	742,400
Cash, cash equivalents and restricted cash, beginning of period	2,576,000	1,163,200
Cash, cash equivalents and restricted cash, end of period	$ 1,131,800	$ 1,905,600

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Supplemental Dislcosures - USD ($)	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$ 417,000	$ 758,100
Cash paid for income taxes	121,100	176,000
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	1,066,800	1,800,600
Restricted cash	65,000	105,000
Total cash, cash equivalents and restricted cash	$ 1,131,800	$ 1,905,600

Management's Interim Financial

Management's Interim Financial Statement Representation:	3 Months Ended
	Mar. 30, 2019
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 three months ended March 30, 2019 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:	3 Months Ended
	Mar. 30, 2019
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:	3 Months Ended
	Mar. 30, 2019
Recent Accounting Pronouncements:
Recent Accounting Pronouncements:	3. Recent Accounting Pronouncements: Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 February 2016, the FASB issued 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, as well as adding new disclosures for leasing activities. 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. The Company used the prospective approach of adoption when the new guidance was adopted on December 30, 2018, the first day of fiscal 2019. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard which allowed it to carry forward historical lease classification. Upon adoption, as a lessee, the Company recognized operating lease right-of-use assets of $6.0 million and operating lease liabilities of $6.3 million on its Consolidated Condensed Balance Sheets. The adoption of the standard did not have a material impact on its Consolidated Condensed Statements of Operations or Shareholders’ Equity (Deficit). As a lessor, the adoption of the new standard required the Company to present cash receipts from leases within operating activities in the Consolidated Condensed Statements of Cash Flows, where in prior periods such cash receipts are presented within investing activities. For the three months ended March 30, 2019, principal collections on lease receivables were $4.7 million. As a lessor, leasing income for direct financing leases is recognized under the effective interest method. The effective interest method of income recognition applies a constant rate of interest equal to the internal rate of return on the lease. For sales-type leases in which the equipment has a fair value greater or less than its carrying amount, selling profit/loss is recognized at commencement. For subsequent periods or for leases in which the equipment’s fair value is equal to its carrying amount, the recording of income is consistent with the accounting for a direct financing lease. For leases that are accounted for as operating leases, income is recognized on a straight-line basis when payments under the lease contract are due. Additional information and disclosures required by this new standard for the Company as a lessee are contained in Note 11 – “Operating Leases”, and as a lessor in Note 6 – “Investment in Leasing Operations”.

Contract Liabilities_

Contract Liabilities:	3 Months Ended
	Mar. 30, 2019
Contract Liabilities:
Contract Liabilities:	4. Contract Liabilities: The Company’s contract liabilities for its franchise revenues consist of deferred revenue associated with franchise fees and software license fees. The table below presents the activity of the current and noncurrent deferred franchise revenue during the first three months of 2019 and 2018, respectively: March 30, 2019 March 31, 2018 Balance at beginning of period $ 10,177,300 $ 10,310,200 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period 292,000 486,000 Fees earned that were included in the balance at the beginning of the period (470,700) (473,300) Balance at end of period $ 9,998,600 $ 10,322,900 The following table illustrates future estimated revenue to be recognized for the remainder of 2019 and full fiscal years thereafter related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 30, 2019. Contract Liabilities expected to be recognized in Amount 2019 $ 1,268,900 2020 1,630,600 2021 1,491,700 2022 1,346,800 2023 1,175,600 Thereafter 3,085,000 $ 9,998,600

Fair Value Measurements_

Fair Value Measurements:	3 Months Ended
	Mar. 30, 2019
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:	3 Months Ended
	Mar. 30, 2019
Investment in Leasing Operations:
Investment in Leasing Operations:	6. Investment in Leasing Operations: Investment in leasing operations consists of the following: March 30, 2019 December 29, 2018 Direct financing and sales-type leases: Minimum lease payments receivable $ 35,791,700 $ 40,822,400 Estimated unguaranteed residual value of equipment 4,431,300 4,741,200 Unearned lease income, net of initial direct costs deferred (5,658,100) (6,739,900) Security deposits (4,125,600) (4,118,300) Equipment installed on leases not yet commenced 5,283,100 5,094,800 Total investment in direct financing and sales-type leases 35,722,400 39,800,200 Allowance for credit losses (651,400) (861,200) Net investment in direct financing and sales-type leases 35,071,000 38,939,000 Operating leases: Operating lease assets 567,300 777,000 Less accumulated depreciation and amortization (530,800) (713,000) Net investment in operating leases 36,500 64,000 Total net investment in leasing operations $ 35,107,500 $ 39,003,000 As of March 30, 2019, the $35.1 million total net investment in leases consists of $17.3 million classified as current and $17.8 million classified as long-term. As of December 29, 2018, the $39.0 million total net investment in leases consists of $18.5 million classified as current and $20.5 million classified as long-term. As of March 30, 2019, leased assets with two customers approximated 19% and 10%, respectively, of the Company’s total assets. A portion of the lease payments receivable from these customers are 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 2019 and the full fiscal years thereafter as of March 30, 2019: Direct Financing and Sales-Type Leases Operating Leases Minimum Lease Income Minimum Lease Fiscal Year Payments Receivable Amortization Payments Receivable 2019 $ 18,871,400 $ 3,994,900 $ 44,000 2020 12,861,900 1,475,300 — 2021 4,006,000 185,900 — 2022 40,000 1,400 — 2023 8,000 500 — Thereafter 4,400 100 — $ 35,791,700 $ 5,658,100 $ 44,000 The activity in the allowance for credit losses for leasing operations during the first three months of 2019 and 2018, respectively, is as follows: March 30, 2019 March 31, 2018 Balance at beginning of period $ 861,200 $ 711,200 Provisions charged to expense 10,100 95,000 Recoveries 4,200 (25,600) Deductions for amounts written-off (224,100) — Balance at end of period $ 651,400 $ 780,600 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: March 30, 2019 December 29, 2018 Investment Allowance for Investment Allowance for In Leases Credit Losses In Leases Credit Losses Collectively evaluated for loss potential $ 35,722,400 651,400 $ 39,800,200 $ 861,200 Individually evaluated for loss potential — — — — Total $ 35,722,400 $ 651,400 $ 39,800,200 $ 861,200 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. March 30, 2019 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Middle-Market $ 34,506,800 $ — $ — $ — $ 34,506,800 Small-Ticket 1,215,600 — — — 1,215,600 Total Investment in Leases $ 35,722,400 $ — $ — $ — $ 35,722,400 December 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 $ 38,395,000 $ — $ — $ 70,000 $ 38,465,000 Small-Ticket 1,335,200 — — — 1,335,200 Total Investment in Leases $ 39,730,200 $ — $ — $ 70,000 $ 39,800,200 The Company leases high-technology and other business-essential equipment to its leasing customers. Upon expiration of the initial term or extended lease term, depending on the structure of the lease, the customer may return the equipment, renew the lease for an additional term, or purchase the equipment. Due to the uncertainty of such outcome at the end of the lease term, the lease as recorded at commencement represents only the current terms of the agreement. As a lessor, the Company’s leases do not contain non-lease components. The residual values reflect the estimated amounts to be received at lease termination from sales or other dispositions of leased equipment to unrelated parties. The leased equipment residual values are based on the Company’s best estimate. The Company’s risk management strategy for its residual value includes the contractual obligations of customer to maintain, service, and insure the leased equipment, the use of third party remarketers as well as the analytical review of historical asset dispositions. Leasing income as presented on the Consolidated Condensed Statements of Operations consists of the following: Three Months Ended March 30, 2019 Interest income on direct financing and sales-type leases $ 2,182,500 Selling profit (loss) at commencement of sales-type leases 873,500 Operating lease income 638,300 Income on sales of equipment under lease 1,225,600 Other 235,400 Leasing income $ 5,155,300

Earnings Per Share_

Earnings Per Share:	3 Months Ended
	Mar. 30, 2019
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 March 30, 2019 March 31, 2018 Denominator for basic EPS — weighted average common shares 3,906,895 3,847,312 Dilutive shares associated with option plans 291,559 277,261 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 4,198,454 4,124,573 Options excluded from EPS calculation — anti-dilutive 5,280 15,929

Shareholders' Equity (Deficit)_

Shareholders' Equity (Deficit):	3 Months Ended
	Mar. 30, 2019
Shareholders' Equity (Deficit):
Shareholders' Equity (Deficit):	8. Shareholders’ Equity (Deficit): Dividends On January 23, 2019, 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 February 6, 2019, which was paid on March 1, 2019. Repurchase of Common Stock In February 2019, the Company’s Board of Directors authorized the repurchase of up to 150,000 shares of our common stock for a price of $159.63 per share through a tender offer (the “Tender Offer”). The Tender Offer began on the date of the announcement, February 28, 2019 and expired on March 28, 2019. Upon expiration, the Company accepted for payment 150,000 shares for a total purchase price of approximately $24.0 million, including fees and expenses related to the Tender Offer. The Tender Offer was financed in part by net borrowings under the Line of Credit. (See Note 9 – “Debt”). Under a previous Board of Directors’ authorization, as of March 30, 2019, the Company has the ability to repurchase an additional 130,604 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 March 30, 2019, 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 March 30, 2019 was as follows: Weighted Average Remaining Number of Weighted Average Contractual Life Shares Exercise Price (years) Intrinsic Value Outstanding, December 29, 2018 639,380 $ 84.12 5.61 $ 47,808,100 Exercised (1,500) 104.41 Outstanding, March 30, 2019 637,880 $ 84.07 5.36 $ 66,671,400 Exercisable, March 30, 2019 471,230 $ 67.90 4.29 $ 56,871,600 No options were granted during the three months ended March 30, 2019 or the three months ended March 31, 2018. All unexercised options at March 30, 2019 have an exercise price equal to the fair market value on the date of the grant. Compensation expense of $498,800 and $490,800 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first three months of 2019 and 2018, respectively. As of March 30, 2019, 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 2.4 years.

Debt_

Debt:	3 Months Ended
	Mar. 30, 2019
Debt:
Debt:	9. Debt: Line of Credit As of March 30, 2019, there was $11.5 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 at 5.50% leaving $38.5 million available for additional borrowings. The Line of Credit has been and will continue to be used for general corporate purposes. During the first quarter of 2019, the Line of Credit was used to finance in part the Tender Offer (as indicated above). The Line of Credit, which terminates in July 2021, 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 March 30, 2019, the Company was in compliance with all of its financial covenants. Notes Payable As of March 30, 2019, the Company had $17.5 million in principal outstanding from the $25.0 million Series A notes issued in May 2015 and $10.6 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 March 30, 2019, 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:	3 Months Ended
	Mar. 30, 2019
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 6.43% at March 30, 2019 on a non-recourse basis. As of March 30, 2019, $3.1 million of the $5.0 million liability balance is current.

Operating Leases_

Operating Leases:	3 Months Ended
	Mar. 30, 2019
Operating Leases:
Operating Leases:	11. Operating Leases: As of March 30, 2019, the Company leases its Minnesota corporate headquarters in a facility with an operating lease that expires in December 2029 as well as satellite office space in California with an operating lease that expires in August 2022. Our leases include both lease (fixed payments including rent) and non-lease components (common area or other maintenance costs and taxes) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. The corporate headquarters lease provides us the option to extend the lease for two additional five year periods. The California lease provides us an option to extend the lease for an additional three year period. The lease renewal options are at our sole discretion; therefore, the renewals to extend the lease term are not included in our right of use assets and lease liabilities as they are not reasonably certain of exercise. The weighted average remaining lease term for these leases is 10.5 years and the weighted average discount rate is 5.5%. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company recognized $365,600 and $286,200 of rent expense for the periods ended March 30, 2019 and March 31, 2018, respectively. Maturities of operating lease liabilities is as follows for the remainder of fiscal 2019 and full fiscal years thereafter as of March 30, 2019: Operating Lease Liabilities expected to be recognized in Amount 2019 $ 321,800 2020 762,500 2021 783,600 2022 784,400 2023 763,300 Thereafter 5,042,900 Total lease payments 8,458,500 Less imputed interest (2,045,100) Present value of lease liabilities $ 6,413,400 Of the $6.4 million operating lease liability outstanding at March 30, 2019, $0.6 million is included in Accrued liabilities in the Current liabilities section of the Consolidated Condensed Balance Sheets. Supplemental cash flow information related to our operating leases is as follows for the period ended March 30, 2019: Three Months Ended March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow outflow from operating leases $ 172,100

Segment Reporting_

Segment Reporting:	3 Months Ended
	Mar. 30, 2019
Segment Reporting:
Segment Reporting:	12. 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 March 30, 2019 March 31, 2018 Revenue: Franchising $ 13,175,900 $ 12,632,200 Leasing 5,155,300 5,528,800 Total revenue $ 18,331,200 $ 18,161,000 Reconciliation to operating income: Franchising segment contribution $ 7,498,000 $ 6,792,500 Leasing segment contribution 2,568,500 3,281,700 Total operating income $ 10,066,500 $ 10,074,200 Depreciation and amortization: Franchising $ 62,500 $ 57,200 Leasing 17,600 18,600 Total depreciation and amortization $ 80,100 $ 75,800 As of March 30, 2019 December 29, 2018 Identifiable assets: Franchising $ 4,081,800 $ 5,208,400 Leasing 36,464,000 40,490,000 Unallocated 6,286,000 964,700 Total $ 46,831,800 $ 46,663,100

Contract Liabilities_ (Tables)

Contract Liabilities: (Tables)	3 Months Ended
	Mar. 30, 2019
Contract Liabilities:
Schedule of activity of current and noncurrent deferred franchise revenue	March 30, 2019 March 31, 2018 Balance at beginning of period $ 10,177,300 $ 10,310,200 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period 292,000 486,000 Fees earned that were included in the balance at the beginning of the period (470,700) (473,300) Balance at end of period $ 9,998,600 $ 10,322,900
Schedule of future estimated revenue to be recognized related to performance obligations	Contract Liabilities expected to be recognized in Amount 2019 $ 1,268,900 2020 1,630,600 2021 1,491,700 2022 1,346,800 2023 1,175,600 Thereafter 3,085,000 $ 9,998,600

Investment in Leasing Operati_2

Investment in Leasing Operations: (Tables)	3 Months Ended
	Mar. 30, 2019
Investment in Leasing Operations:
Schedule of investment in leasing operations	March 30, 2019 December 29, 2018 Direct financing and sales-type leases: Minimum lease payments receivable $ 35,791,700 $ 40,822,400 Estimated unguaranteed residual value of equipment 4,431,300 4,741,200 Unearned lease income, net of initial direct costs deferred (5,658,100) (6,739,900) Security deposits (4,125,600) (4,118,300) Equipment installed on leases not yet commenced 5,283,100 5,094,800 Total investment in direct financing and sales-type leases 35,722,400 39,800,200 Allowance for credit losses (651,400) (861,200) Net investment in direct financing and sales-type leases 35,071,000 38,939,000 Operating leases: Operating lease assets 567,300 777,000 Less accumulated depreciation and amortization (530,800) (713,000) Net investment in operating leases 36,500 64,000 Total net investment in leasing operations $ 35,107,500 $ 39,003,000
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 2019 $ 18,871,400 $ 3,994,900 $ 44,000 2020 12,861,900 1,475,300 — 2021 4,006,000 185,900 — 2022 40,000 1,400 — 2023 8,000 500 — Thereafter 4,400 100 — $ 35,791,700 $ 5,658,100 $ 44,000
Schedule of activity in the allowance for credit losses for leasing operations	March 30, 2019 March 31, 2018 Balance at beginning of period $ 861,200 $ 711,200 Provisions charged to expense 10,100 95,000 Recoveries 4,200 (25,600) Deductions for amounts written-off (224,100) — Balance at end of period $ 651,400 $ 780,600
Schedule of investment in direct financing and sales-type leases (investment in leases) and allowance for credit losses by loss evaluation methodology	March 30, 2019 December 29, 2018 Investment Allowance for Investment Allowance for In Leases Credit Losses In Leases Credit Losses Collectively evaluated for loss potential $ 35,722,400 651,400 $ 39,800,200 $ 861,200 Individually evaluated for loss potential — — — — Total $ 35,722,400 $ 651,400 $ 39,800,200 $ 861,200
Schedule of information regarding accruing and non-accrual leases	March 30, 2019 0-60 Days 61-90 Days Over 90 Days Delinquent Delinquent Delinquent and and Accruing and Accruing Accruing Non-Accrual Total Middle-Market $ 34,506,800 $ — $ — $ — $ 34,506,800 Small-Ticket 1,215,600 — — — 1,215,600 Total Investment in Leases $ 35,722,400 $ — $ — $ — $ 35,722,400 December 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 $ 38,395,000 $ — $ — $ 70,000 $ 38,465,000 Small-Ticket 1,335,200 — — — 1,335,200 Total Investment in Leases $ 39,730,200 $ — $ — $ 70,000 $ 39,800,200
Schedule of components of leasing income	Three Months Ended March 30, 2019 Interest income on direct financing and sales-type leases $ 2,182,500 Selling profit (loss) at commencement of sales-type leases 873,500 Operating lease income 638,300 Income on sales of equipment under lease 1,225,600 Other 235,400 Leasing income $ 5,155,300

Earnings Per Share_ (Tables)

Earnings Per Share: (Tables)	3 Months Ended
	Mar. 30, 2019
Earnings Per Share:
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share	Three Months Ended March 30, 2019 March 31, 2018 Denominator for basic EPS — weighted average common shares 3,906,895 3,847,312 Dilutive shares associated with option plans 291,559 277,261 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 4,198,454 4,124,573 Options excluded from EPS calculation — anti-dilutive 5,280 15,929

Shareholders' Equity (Deficit_2

Shareholders' Equity (Deficit): (Tables)	3 Months Ended
	Mar. 30, 2019
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 29, 2018 639,380 $ 84.12 5.61 $ 47,808,100 Exercised (1,500) 104.41 Outstanding, March 30, 2019 637,880 $ 84.07 5.36 $ 66,671,400 Exercisable, March 30, 2019 471,230 $ 67.90 4.29 $ 56,871,600

Operating Leases_ (Tables)

Operating Leases: (Tables)	3 Months Ended
	Mar. 30, 2019
Operating Leases:
Schedule of maturities of operating lease liabilities	Operating Lease Liabilities expected to be recognized in Amount 2019 $ 321,800 2020 762,500 2021 783,600 2022 784,400 2023 763,300 Thereafter 5,042,900 Total lease payments 8,458,500 Less imputed interest (2,045,100) Present value of lease liabilities $ 6,413,400
Schedule of supplemental cash flow information related to operating leases	Three Months Ended March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow outflow from operating leases $ 172,100

Segment Reporting_ (Tables)

Segment Reporting: (Tables)	3 Months Ended
	Mar. 30, 2019
Segment Reporting:
Schedule of financial information by segment and reconciliation of segment contribution to operating income	Three Months Ended March 30, 2019 March 31, 2018 Revenue: Franchising $ 13,175,900 $ 12,632,200 Leasing 5,155,300 5,528,800 Total revenue $ 18,331,200 $ 18,161,000 Reconciliation to operating income: Franchising segment contribution $ 7,498,000 $ 6,792,500 Leasing segment contribution 2,568,500 3,281,700 Total operating income $ 10,066,500 $ 10,074,200 Depreciation and amortization: Franchising $ 62,500 $ 57,200 Leasing 17,600 18,600 Total depreciation and amortization $ 80,100 $ 75,800 As of March 30, 2019 December 29, 2018 Identifiable assets: Franchising $ 4,081,800 $ 5,208,400 Leasing 36,464,000 40,490,000 Unallocated 6,286,000 964,700 Total $ 46,831,800 $ 46,663,100

Management's Interim Financia_2

Management's Interim Financial Statement Representation: (Details)	3 Months Ended
	Mar. 30, 2019item
Minimum
Number of Weeks in Fiscal Year	52
Maximum
Number of Weeks in Fiscal Year	53

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements: ASU 2016-02 (Details) - USD ($)	3 Months Ended
	Mar. 30, 2019	Dec. 30, 2018
Recently Adopted Accounting Pronouncements
Operating lease right-of-use assets	$ 6,056,100
Operating lease liabilities	6,413,400
Proceeds from Lease Payments	4,662,800
Accounting Standards Update 2016-02
Recently Adopted Accounting Pronouncements
Proceeds from Lease Payments	$ 4,700,000
Accounting Standards Update 2016-02 | Adjustment
Recently Adopted Accounting Pronouncements
Operating lease right-of-use assets		$ 6,000,000
Operating lease liabilities		$ 6,300,000

Contract Liabilities - Activity

Contract Liabilities - Activity (Details) - USD ($)	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Activity of the current and noncurrent deferred franchise revenue
Balance at beginning of period	$ 10,177,300	$ 10,310,200
Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period	292,000	486,000
Fees earned that were included in the balance at the beginning of the period	(470,700)	(473,300)
Balance at end of period	$ 9,998,600	$ 10,322,900

Contract Liabilities - Performa

Contract Liabilities - Performance Obligations (Details)	Mar. 30, 2019USD ($)
Contract Liabilities:
Revenue, remaining peformance obligation	$ 9,998,600
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31
Contract Liabilities:
Revenue, remaining peformance obligation	$ 1,268,900
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29
Contract Liabilities:
Revenue, remaining peformance obligation	$ 1,630,600
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
Contract Liabilities:
Revenue, remaining peformance obligation	$ 1,491,700
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
Contract Liabilities:
Revenue, remaining peformance obligation	$ 1,346,800
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]: 2023-01-01
Contract Liabilities:
Revenue, remaining peformance obligation	$ 1,175,600
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]: 2023-12-31
Contract Liabilities:
Revenue, remaining peformance obligation	$ 3,085,000
Future estimated revenue to be recognised related to performance obligations
Duration of expected recognition period for remaining performance obligation

Investment in Leasing Operati_3

Investment in Leasing Operations: Summary of Leasing Operations (Details) - USD ($)	Mar. 30, 2019	Dec. 29, 2018
Direct financing and sales-type leases:
Minimum lease payments receivable	$ 35,791,700
Minimum lease payments receivable		$ 40,822,400
Estimated unguaranteed residual value of equipment	4,431,300
Estimated unguaranteed residual value of equipment		4,741,200
Unearned lease income net of initial direct costs deferred	(5,658,100)
Unearned lease income net of initial direct costs deferred		(6,739,900)
Security deposits	(4,125,600)
Security deposits		(4,118,300)
Equipment installed on leases not yet commenced	5,283,100
Equipment installed on leases not yet commenced		5,094,800
Total investment in direct financing and sales-type leases	35,722,400
Total investment in direct financing and sales-type leases		39,800,200
Allowance for credit losses	(651,400)
Allowance for credit losses		(861,200)
Net investment in direct financing and sales-type leases	35,071,000
Net investment in direct financing and sales-type leases		38,939,000
Operating leases:
Operating lease assets	567,300
Less accumulated depreciation and amortization	(530,800)
Net investment in operating leases	36,500
Total net investment in leasing operations	35,107,500
Operating lease assets		777,000
Less accumulated depreciation and amortization		(713,000)
Net investment in operating leases		64,000
Total net investment in leasing operations		39,003,000
Net investment in leases - current	17,321,500
Net investment in leases - long-term	$ 17,786,000
Net investment in leases - current		18,547,500
Net investment in leases - long-term		$ 20,455,500

Investment in Leasing Operati_4

Investment in Leasing Operations: Risk Concentration (Details) - Total assets	3 Months Ended
	Mar. 30, 2019customer
Investment in leasing operations
Number of customers	2
Customer One Concentration Risk
Investment in leasing operations
Percentage of concentration risk	19.00%
Customer Two Concentration Risk
Investment in leasing operations
Percentage of concentration risk	10.00%

Investment in Leasing Operati_5

Investment in Leasing Operations: Minimum Lease Payments Receivable (Details)	Mar. 30, 2019USD ($)
Direct Financing and Sales-Type Leases, Minimum Lease Payments Receivable
2019	$ 18,871,400
2020	12,861,900
2021	4,006,000
2022	40,000
2023	8,000
Thereafter	4,400
Total	35,791,700
2019	3,994,900
2020	1,475,300
2021	185,900
2022	1,400
2023	500
Thereafter	100
Total	5,658,100
Operating Leases, Minimum Lease Payments Receivable
2019	44,000
Total	$ 44,000

Investment in Leasing Operati_6

Investment in Leasing Operations: Credit Losses (Details) - USD ($)	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018
Activity in the allowance for credit losses for leasing operations
Balance at beginning of period	$ 861,200	$ 711,200
Provision for credit losses	10,100	95,000
Recoveries	4,200	(25,600)
Deductions for amounts written-off	(224,100)
Balance at end of period	651,400	$ 780,600
Investment In Leases
Total investment in direct financing and sales-type leases	35,722,400
Total investment in direct financing and sales-type leases			$ 39,800,200
Allowance for Credit Losses
Total	651,400
Total			861,200
Investment in leases
Investment In Leases
Collectively evaluated for loss potential	35,722,400		39,800,200
Total investment in direct financing and sales-type leases	35,722,400
Total investment in direct financing and sales-type leases			39,800,200
Allowance for Credit Losses
Collectively evaluated for loss potential	651,400		861,200
Total	$ 651,400
Total			$ 861,200

Investment in Leasing Operati_7

Investment in Leasing Operations: Investment Aging (Details) - USD ($)	Mar. 30, 2019	Dec. 29, 2018
Investment in leasing operations
0-60 Days Delinquent and Accruing	$ 35,722,400	$ 39,730,200
Non-Accrual		70,000
Total investment in direct financing and sales-type leases	35,722,400
Total investment in direct financing and sales-type leases		39,800,200
Middle-Market
Investment in leasing operations
0-60 Days Delinquent and Accruing	34,506,800	38,395,000
Non-Accrual		70,000
Total investment in direct financing and sales-type leases	34,506,800
Total investment in direct financing and sales-type leases		38,465,000
Small-Ticket
Investment in leasing operations
0-60 Days Delinquent and Accruing	1,215,600	1,335,200
Total investment in direct financing and sales-type leases	$ 1,215,600
Total investment in direct financing and sales-type leases		$ 1,335,200

Investment in Leasing Operati_8

Investment in Leasing Operations: Leasing Income (Details)	3 Months Ended
	Mar. 30, 2019USD ($)
Leasing income
Interest income on direct financing and sales-type leases	$ 2,182,500
Selling profit (loss) at commencement of sales-type leases	873,500
Operating lease income	638,300
Income on sales of equipment under lease	1,225,600
Other	235,400
Leasing income	$ 5,155,300

Earnings Per Share_ (Details)

Earnings Per Share: (Details) - shares	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Earnings Per Share:
Denominator for basic EPS - weighted average common shares	3,906,895	3,847,312
Dilutive shares associated with option plans	291,559	277,261
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares	4,198,454	4,124,573
Options excluded from EPS calculation - anti-dilutive (in shares)	5,280	15,929

Shareholders' Equity (Deficit_3

Shareholders' Equity (Deficit): Dividends and Repurchase of Common Stock (Details) - USD ($)	Mar. 28, 2019	Jan. 23, 2019	Feb. 28, 2019	Mar. 30, 2019	Mar. 31, 2018
Dividends
Cash dividends declared and paid (in dollars per share)		$ 0.15
Aggregate quarterly cash dividends declared and paid				$ 586,100	$ 423,200
2019 Tender Offer
Repurchase of Common Stock
Shares authorized for repurchase per tender offer			150,000
Price per share of common stock per tender offer			$ 159.63
Number of shares repurchased	150,000
Purchase price of shares per tender offer	$ 24,000,000
Common Stock Repurchase Program
Repurchase of Common Stock
Number of additional shares that can be repurchased				130,604

Shareholders' Equity (Deficit_4

Shareholders' Equity (Deficit): Stock Option Plans and Stock-Based Compensation (Details) - Stock options - USD ($)	3 Months Ended		12 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 29, 2018	Feb. 20, 2011
Number of Shares
Outstanding at the beginning of the period (in shares)	639,380
Granted (in shares)	0	0
Exercised (in shares)	(1,500)
Outstanding at the end of the period (in shares)	637,880		639,380
Exercisable at the end of the period (in shares)	471,230
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 84.12
Exercised (in dollars per share)	104.41
Outstanding at the end of the period (in dollars per share)	84.07		$ 84.12
Exercisable at the end of the period (in dollars per share)	$ 67.90
Weighted Average Remaining Contractual Life (years)
Outstanding	5 years 4 months 10 days		5 years 7 months 10 days
Exercisable at the end of the period	4 years 3 months 15 days
Intrinsic Value
Outstanding	$ 66,671,400		$ 47,808,100
Exercisable at the end of the period	56,871,600
Additional disclosures
Compensation expense	498,800	$ 490,800
Total unrecognized compensation expense	$ 3,900,000
Weighted average period for recognition of unrecognized compensation expense	2 years 4 months 24 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	Mar. 30, 2019USD ($)
Line of Credit
Borrowings outstanding	$ 11.5
Line of credit available for additional borrowings	$ 38.5
Minimum
Line of Credit
Interest rate (as a percent)	5.50%

Debt_ Notes Payable (Details)

Debt: Notes Payable (Details) - Prudential Investment Management, Inc - USD ($)	3 Months Ended
	Mar. 30, 2019	Aug. 31, 2017	May 31, 2015
Notes Payable
Notes Payable
Minimum prepayment	$ 1,000,000
Series A Notes
Notes Payable
Principal amount outstanding	$ 17,500,000
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
Notes Payable
Principal amount outstanding	$ 10,600,000
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 ($)	Mar. 30, 2019	Dec. 29, 2018
Discounted Lease Rentals
Discounted lease rentals, current	$ 3,070,700	$ 3,021,900
Discounted lease rentals	$ 5,000,000
Secured Debt
Discounted Lease Rentals
Weighted average interest rate on a non-recourse basis (as a percent)	6.43%

Operating Leases_ (Details)

Operating Leases: (Details)	3 Months Ended
	Mar. 30, 2019USD ($)item	Mar. 31, 2018USD ($)
Operating Leases
Weighted average remaining lease term	10 years 6 months
Weighted average discount rate (as a percent)	5.50%
Rent expense	$ 365,600
Rent expense		$ 286,200
Maturities of operating lease liabilities:
2019	321,800
2020	762,500
2021	783,600
2022	784,400
2023	763,300
Thereafter	5,042,900
Total lease payments	8,458,500
Less imputed interest	(2,045,100)
Present value of lease liabilities	6,413,400
Operating lease liability
Operating lease liability, current	$ 600,000
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow outflow from operating leases	$ 172,100
Corporate headquarters, Minnesota
Operating Leases
Lease renewal option	true
Number of lease extension periods | item	2
Lease renewal term	5 years
Satellite office space, California
Operating Leases
Lease renewal option	true
Lease renewal term	3 years

Segment Reporting_ (Details)

Segment Reporting: (Details)	3 Months Ended
	Mar. 30, 2019USD ($)item	Mar. 31, 2018USD ($)	Dec. 29, 2018USD ($)
Segment Reporting
Number of reportable business segments | item	2
Total revenue	$ 18,331,200	$ 18,161,000
Total operating income	10,066,500	10,074,200
Total depreciation and amortization	80,100	75,800
Total identifiable assets	46,831,800		$ 46,663,100
Operating | Franchising
Segment Reporting
Total revenue	13,175,900	12,632,200
Total operating income	7,498,000	6,792,500
Total depreciation and amortization	62,500	57,200
Total identifiable assets	4,081,800		5,208,400
Operating | Leasing
Segment Reporting
Total revenue	5,155,300	5,528,800
Total operating income	2,568,500	3,281,700
Total depreciation and amortization	17,600	$ 18,600
Total identifiable assets	36,464,000		40,490,000
Unallocated
Segment Reporting
Total identifiable assets	$ 6,286,000		$ 964,700