Winmark (WINA) 10-Q 17 Apr 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 30, 2024	Apr. 15, 2024
Document and Entity Information
Entity Registrant Name	WINMARK CORPORATION
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 30, 2024
Document Transition Report	false
Entity File Number	000-22012
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1622691
Entity Address, Address Line One	605 Highway 169 North, Suite 400
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55441
City Area Code	763
Local Phone Number	520-8500
Title of 12(b) Security	Common Stock, no par value per share
Trading Symbol	WINA
Security Exchange Name	NASDAQ
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,497,430
Current Fiscal Year End Date	--12-28
Entity Central Index Key	0000908315
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($)	Mar. 30, 2024	Dec. 30, 2023
Current Assets:
Cash and cash equivalents	$ 22,872,200	$ 13,361,500
Restricted cash		25,000
Receivables, less allowance for credit losses of $600 and $600	1,688,600	1,475,300
Net investment in leases - current	34,100	75,100
Income tax receivable		31,400
Inventories	420,900	386,100
Prepaid expenses	1,265,600	1,392,100
Total current assets	26,281,400	16,746,500
Property and equipment:
Property and equipment, net	1,649,400	1,669,800
Operating lease right of use asset	2,351,700	2,425,900
Intangible assets, net	2,905,800	2,994,300
Goodwill	607,500	607,500
Other assets	487,800	471,300
Deferred income taxes	4,052,400	4,052,400
Total assets	38,336,000	28,967,700
Current Liabilities:
Notes payable, net of unamortized debt issuance costs of $32,100 and $32,100	4,217,900	4,217,900
Accounts payable	1,296,300	1,719,400
Income tax payable	2,469,000
Accrued liabilities	4,734,000	2,858,200
Deferred revenue	1,657,300	1,666,100
Total current liabilities	14,374,500	10,461,600
Long-term Liabilities:
Line of credit/Term loan	30,000,000	30,000,000
Notes payable, net of unamortized debt issuance costs of $80,700 and $88,700	33,794,300	34,848,800
Deferred revenue	7,744,400	7,657,500
Operating lease liabilities	3,566,600	3,715,800
Other liabilities	1,435,300	1,440,100
Total long-term liabilities	76,540,600	77,662,200
Shareholders' Equity (Deficit):
Common stock, no par value, 10,000,000 shares authorized, 3,497,430 and 3,496,977 shares issued and outstanding	8,324,700	7,768,800
Retained earnings (accumulated deficit)	(60,903,800)	(66,924,900)
Total shareholders' equity (deficit)	(52,579,100)	(59,156,100)
Total liabilities and shareholders' equity (deficit)	$ 38,336,000	$ 28,967,700

CONSOLIDATED CONDENSED BALANC_2

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 30, 2024	Dec. 30, 2023
CONSOLIDATED CONDENSED BALANCE SHEETS
Receivables, allowance for doubtful accounts	$ 600	$ 600
Unamortized debt issuance costs - Current	32,100	32,100
Unamortized debt issuance costs - Noncurrent	$ 80,700	$ 88,700
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,497,430	3,496,977
Common stock, shares outstanding	3,497,430	3,496,977

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Revenue:
Leasing income	$ 836,800	$ 1,637,000
Total revenue	20,109,500	20,523,600
Leasing expense	36,600	316,400
Provisions for credit losses	(1,500)	(4,600)
Selling, general and administrative expenses	6,817,300	6,636,100
Income from operations	12,218,200	12,388,400
Interest expense	(737,700)	(797,600)
Interest and other income	187,900	125,700
Income before income taxes	11,668,400	11,716,500
Provision for income taxes	(2,849,400)	(2,773,800)
Net income	$ 8,819,000	$ 8,942,700
Earnings per share - basic (in dollars per share)	$ 2.52	$ 2.58
Earnings per share - diluted (in dollars per share)	$ 2.41	$ 2.49
Weighted average shares outstanding - basic	3,497,261	3,460,720
Weighted average shares outstanding - diluted	3,661,367	3,594,234
Royalties
Revenue:
Revenue	$ 17,268,700	$ 16,747,700
Merchandise sales
Revenue:
Revenue	1,110,500	1,276,000
Cost of merchandise sold	1,038,900	1,187,300
Franchise fees
Revenue:
Revenue	364,500	378,200
Other
Revenue:
Revenue	$ 529,000	$ 484,700

CONSOLIDATED CONDENSED STATEM_2

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock	Retained Earnings (Accumulated Deficit).	Total
BALANCE at Dec. 31, 2022	$ 1,806,700	$ (63,438,800)	$ (61,632,100)
BALANCE (in shares) at Dec. 31, 2022	3,459,673
Shareholders' Equity (Deficit)
Stock options exercised	$ 590,400		590,400
Stock options exercised (in shares)	3,518
Compensation expense relating to stock options	$ 475,900		475,900
Cash dividends		(2,421,900)	(2,421,900)
Comprehensive income (Net income)		8,942,700	8,942,700
BALANCE at Apr. 01, 2023	$ 2,873,000	(56,918,000)	(54,045,000)
BALANCE (in shares) at Apr. 01, 2023	3,463,191
BALANCE at Dec. 30, 2023	$ 7,768,800	(66,924,900)	$ (59,156,100)
BALANCE (in shares) at Dec. 30, 2023	3,496,977		3,496,977
Shareholders' Equity (Deficit)
Stock options exercised	$ 70,000		$ 70,000
Stock options exercised (in shares)	453
Compensation expense relating to stock options	$ 485,900		485,900
Cash dividends		(2,797,900)	(2,797,900)
Comprehensive income (Net income)		8,819,000	8,819,000
BALANCE at Mar. 30, 2024	$ 8,324,700	$ (60,903,800)	$ (52,579,100)
BALANCE (in shares) at Mar. 30, 2024	3,497,430		3,497,430

CONSOLIDATED CONDENSED STATEM_3

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares		3 Months Ended
	Jan. 31, 2024	Mar. 30, 2024	Apr. 01, 2023
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)
Cash dividends (in dollars per share)	$ 0.80	$ 0.80	$ 0.70

CONSOLIDATED CONDENSED STATEM_4

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
OPERATING ACTIVITIES:
Net Income	$ 8,819,000	$ 8,942,700
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	108,300	104,000
Amortization of intangible assets	88,500	88,500
Provisions for credit losses	(1,500)	(4,600)
Compensation expense related to stock options	485,900	475,900
Deferred income taxes		24,200
Operating lease right of use asset amortization	74,200	66,900
Tax benefits on exercised stock options		77,700
Change in operating assets and liabilities:
Receivables	(213,300)	(143,200)
Principal collections on lease receivables	62,300	423,800
Income tax receivable/payable	2,500,400	2,490,900
Inventories	(34,800)	356,300
Prepaid expenses	126,500	422,400
Other assets	(16,600)	(40,400)
Accounts payable	(423,100)	(678,300)
Accrued and other liabilities	1,729,800	1,140,200
Rents received in advance and security deposits	(19,700)	(194,200)
Deferred revenue	78,100	297,700
Net cash provided by operating activities	13,364,000	13,850,500
INVESTING ACTIVITIES:
Purchase of property and equipment	(87,900)	(5,500)
Net cash used for investing activities	(87,900)	(5,500)
FINANCING ACTIVITIES:
Payments on notes payable	(1,062,500)	(1,062,500)
Proceeds from exercises of stock options	70,000	590,400
Dividends paid	(2,797,900)	(2,421,900)
Net cash used for financing activities	(3,790,400)	(2,894,000)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	9,485,700	10,951,000
Cash, cash equivalents and restricted cash, beginning of period	13,386,500	13,680,600
Cash, cash equivalents and restricted cash, end of period	$ 22,872,200	$ 24,631,600

CONSOLIDATED CONDENSED STATEM_5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - Supplemental Disclosures - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$ 725,700	$ 791,500
Cash paid for income taxes	349,100	181,200
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	22,872,200	24,551,600
Restricted cash		80,000
Total cash, cash equivalents and restricted cash	$ 22,872,200	$ 24,631,600

Management's Interim Financial

Management's Interim Financial Statement Representation:	3 Months Ended
	Mar. 30, 2024
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 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, 2024 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, 2024
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 also operates a middle market equipment leasing business under the Winmark Capital® mark. ​

Contract Liabilities_

Contract Liabilities:	3 Months Ended
	Mar. 30, 2024
Contract Liabilities:
Contract Liabilities:	3. 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 2024 and 2023, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 30, 2024 April 1, 2023 Balance at beginning of period ​ $ 9,323,600 ​ $ 8,618,100 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period ​ 481,000 ​ 756,400 Fees earned that were included in the balance at the beginning of the period ​ (402,900) ​ (458,700) Balance at end of period ​ $ 9,401,700 ​ $ 8,915,800 ​ The following table illustrates future estimated revenue to be recognized for the remainder of 2024 and full fiscal years thereafter related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 30, 2024. ​ ​ ​ ​ ​ Contract Liabilities expected to be recognized in ​ Amount 2024 ​ $ 1,187,300 2025 ​ 1,497,700 2026 ​ 1,293,300 2027 ​ 1,118,600 2028 ​ 949,200 Thereafter ​ 3,355,600 ​ ​ $ 9,401,700 ​

Fair Value Measurements_

Fair Value Measurements:	3 Months Ended
	Mar. 30, 2024
Fair Value Measurements:
Fair Value Measurements:	4. 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, 2024
Investment in Leasing Operations:
Investment in Leasing Operations:	5. Investment in Leasing Operations: ​ In May 2021, the Company made the decision to no longer solicit new leasing customers and pursue an orderly run-off for its leasing portfolio. ​ Leasing income as presented on the Consolidated Condensed Statements of Operations consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 30, 2024 April 1, 2023 ​ Interest income on direct financing and sales-type leases ​ $ 5,900 ​ $ 94,800 - Operating lease income ​ ​ 627,800 ​ ​ 852,700 ​ Income on sales of equipment under lease ​ ​ 196,700 ​ ​ 558,200 ​ Other ​ ​ 6,400 ​ ​ 131,300 ​ Leasing income ​ $ 836,800 ​ $ 1,637,000 ​ ​

Intangible Assets_

Intangible Assets:	3 Months Ended
	Mar. 30, 2024
Intangible Assets
Intangible Assets	​ 6. Intangible Assets ​ Intangible assets consist of reacquired franchise rights. The Company amortizes the fair value of the reacquired franchise rights over the contract term of the franchise. The Company recognized ​ The following table illustrates future amortization to be expensed for the remainder of 2024 and full fiscal years thereafter related to reacquired franchise rights as of March 30, 2024. ​ ​ ​ ​ ​ Amortization expected to be expensed in ​ Amount 2024 ​ $ 265,500 2025 ​ 354,000 2026 ​ 354,000 2027 ​ 354,000 2028 ​ 354,000 Thereafter ​ 1,224,300 ​ ​ $ 2,905,800 ​

Earnings Per Share_

Earnings Per Share:	3 Months Ended
	Mar. 30, 2024
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, 2024 April 1, 2023 Denominator for basic EPS — weighted average common shares 3,497,261 3,460,720 Dilutive shares associated with option plans 164,106 133,514 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 3,661,367 3,594,234 Options excluded from EPS calculation — anti-dilutive 1,667 2,901 ​

Shareholders' Equity (Deficit)_

Shareholders' Equity (Deficit):	3 Months Ended
	Mar. 30, 2024
Shareholders' Equity (Deficit):
Shareholders' Equity (Deficit):	8. Shareholders’ Equity (Deficit): ​ Dividends ​ On January 31, 2024, the Company’s Board of Directors approved the payment of a $0.80 per share quarterly cash dividend to shareholders of record at the close of business on February 14, 2024, which was paid on March 1, 2024. ​ Repurchase of Common Stock ​ During the first three months of 2024, the Company did not repurchase any shares of its common stock. Under the Board of Directors’ authorization, as of March 30, 2024, the Company has the ability to repurchase an additional 78,600 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 ​ Stock option activity under the Company’s Option Plans as of March 30, 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ Number of ​ Weighted Average ​ Contractual Life ​ ​ ​ ​ Shares Exercise Price (years) Intrinsic Value Outstanding, December 30, 2023 341,892 ​ $ 180.73 ​ 5.98 ​ $ 81,017,600 Exercised (453) ​ ​ 154.53 ​ ​ ​ ​ ​ Outstanding, March 30, 2024 341,439 ​ $ 180.77 ​ 5.73 ​ $ 61,928,500 Exercisable, March 30, 2024 234,286 ​ $ 154.70 ​ 4.67 ​ $ 48,498,036 ​ No options were granted during the first three months ended March 30, 2024. ​ The fair value of options granted under the Option Plans during the first three months of 2023 were estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ April 1, 2023 ​ Risk free interest rate ​ 4.13 % Expected life (years) ​ 6 ​ Expected volatility ​ 28.43 % Dividend yield ​ 3.25 % Option fair value ​ $ 69.41 ​ ​ ​ ​ All unexercised options at March 30, 2024 have an exercise price equal to the fair market value on the date of the grant. ​ Compensation expense of $485,900 and $475,900 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 2024 and 2023, respectively. As of March 30, 2024, the Company had

Debt_

Debt:	3 Months Ended
	Mar. 30, 2024
Debt:
Debt:	9. Debt: ​ Line of Credit/Term Loan ​ As of March 30, 2024, there were no revolving loans outstanding under the Company’s credit facility with CIBC Bank USA (the “Line of Credit”), leaving $20.0 million available for additional borrowings. As of March 30, 2024, the Company had delayed draw term loan borrowings totaling $30.0 million under the Line of Credit bearing interest ranging from 4.60% to 4.75%. ​ 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, (as the Line of Credit ranks pari passu with the Prudential facilities described below) contains customary financial conditions and covenants, and requires maintenance of minimum levels of debt service coverage and maximum levels of leverage (all as defined within the Line of Credit). As of March 30, 2024, the Company was in compliance with all of its financial covenants. ​ Notes Payable ​ As of March 30, 2024, the Company had aggregate principal outstanding of $38.1 million under its Note Agreement (“the Note Agreement”) with PGIM, Inc (formerly Prudential Investment Management, Inc.) its affiliates and managed accounts (collectively, “Prudential”) consisting of $3.8 million in principal outstanding from the $25.0 million Series A notes issued in May 2015, $4.4 million in principal outstanding from the $12.5 million Series B notes issued in August 2017 and $30.0 million in principal outstanding from the $30.0 million Series C notes issued in September 2021. ​ The final maturity of the Series A ​ 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 debt service coverage and maximum levels of leverage (all as defined within the Note Agreement). As of March 30, 2024, 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. ​ In April 2022, the Company entered into a Private Shelf Agreement (the “Shelf Agreement”) with Prudential, summarized as follows: ● For a period three years from entry into the Shelf Agreement, subject to certain customary conditions, the Company may offer and Prudential may purchase from the Company privately negotiated senior notes (“Shelf Notes”) in the aggregate principal amount up to (i) $100.0 million, less (ii) the aggregate principal amount of notes outstanding at such point (including notes outstanding under the existing Prudential Note Agreement); ● Each Shelf Note issued will have an average life and maturity of no more than 12.5 years from the date of original issuance, with interest payable at a rate per annum determined at the time of each issuance; ● The Shelf Notes will be secured by all of the Company’s assets and the Shelf Notes will rank pari passu with the Company’s obligations to the lenders under the Line of Credit and the Note Agreement; ● The Shelf Notes may be prepaid, at the option of the Company, in whole or in part (in a minimum amount of $1 million), but prepayments will require payment of a Yield Maintenance Amount (as defined within the Shelf Agreement); ● The Shelf Agreement contains customary affirmative covenants and negative covenants that are substantially the same as those contained in the Line of Credit and Note Agreement. As of March 30, 2024, the Company had not issued any notes under the Shelf Agreement and was in compliance with all of its financial covenants.

Operating Leases_

Operating Leases:	3 Months Ended
	Mar. 30, 2024
Operating Leases:
Operating Leases:	10. Operating Leases: ​ As of March 30, 2024, the Company leases its Minnesota corporate headquarters in a facility with an operating lease that expires in December 2029. The remaining lease term for this lease is . The Company recognized ​ Maturities of operating lease liabilities is as follows for the remainder of fiscal 2024 and full fiscal years thereafter as of March 30, 2024: ​ ​ ​ ​ ​ Operating Lease Liabilities expected to be recognized in Amount 2024 ​ $ 525,300 2025 ​ 806,000 2026 ​ 828,200 2027 ​ 851,100 2028 ​ 874,600 Thereafter ​ 898,700 Total lease payments ​ ​ 4,783,900 Less imputed interest ​ ​ (697,600) Present value of lease liabilities ​ $ 4,086,300 ​ Of the $4.1 million operating lease liability outstanding at March 30, 2024, $0.5 million is included in Accrued liabilities in the Current liabilities ​ Supplemental cash flow information related to our operating leases is as follows for the period ended March 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 30, 2024 April 1, 2023 Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ Operating cash flow outflow from operating leases ​ $ 259,100 ​ $ 189,100 ​

Segment Reporting_

Segment Reporting:	3 Months Ended
	Mar. 30, 2024
Segment Reporting:
Segment Reporting:	11. Segment Reporting: ​ The Company currently has one reportable operating segment, franchising, and one non-reportable operating segment. The franchising segment franchises value-oriented retail store concepts that buy, sell and trade merchandise. The non-reportable operating segment includes the Company’s equipment leasing business. Segment reporting is intended to give financial statement users a better view of how the Company manages and evaluates its businesses. The Company’s internal management reporting is the basis for the information disclosed for its operating segments. The following tables summarize financial information by segment and provide a reconciliation of segment contribution to operating income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 30, 2024 April 1, 2023 Revenue: ​ ​ ​ ​ ​ ​ ​ Franchising ​ $ 19,272,700 ​ $ 18,886,600 ​ Other ​ 836,800 ​ 1,637,000 ​ Total revenue ​ $ 20,109,500 ​ $ 20,523,600 ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation to operating income: ​ ​ ​ ​ ​ ​ ​ Franchising segment contribution ​ $ 11,475,900 ​ $ 11,207,500 ​ Other operating segment contribution ​ 742,300 ​ 1,180,900 ​ Total operating income ​ $ 12,218,200 ​ $ 12,388,400 ​ ​

Contract Liabilities_ (Tables)

Contract Liabilities: (Tables)	3 Months Ended
	Mar. 30, 2024
Contract Liabilities:
Schedule of activity of current and noncurrent deferred franchise revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ March 30, 2024 April 1, 2023 Balance at beginning of period ​ $ 9,323,600 ​ $ 8,618,100 Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period ​ 481,000 ​ 756,400 Fees earned that were included in the balance at the beginning of the period ​ (402,900) ​ (458,700) Balance at end of period ​ $ 9,401,700 ​ $ 8,915,800
Schedule of future estimated revenue to be recognized related to performance obligations	​ ​ ​ ​ ​ Contract Liabilities expected to be recognized in ​ Amount 2024 ​ $ 1,187,300 2025 ​ 1,497,700 2026 ​ 1,293,300 2027 ​ 1,118,600 2028 ​ 949,200 Thereafter ​ 3,355,600 ​ ​ $ 9,401,700 ​

Investment in Leasing Operati_2

Investment in Leasing Operations: (Tables)	3 Months Ended
	Mar. 30, 2024
Investment in Leasing Operations:
Schedule of components of leasing income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 30, 2024 April 1, 2023 ​ Interest income on direct financing and sales-type leases ​ $ 5,900 ​ $ 94,800 - Operating lease income ​ ​ 627,800 ​ ​ 852,700 ​ Income on sales of equipment under lease ​ ​ 196,700 ​ ​ 558,200 ​ Other ​ ​ 6,400 ​ ​ 131,300 ​ Leasing income ​ $ 836,800 ​ $ 1,637,000 ​ ​

Intangible Assets_ (Tables)

Intangible Assets: (Tables)	3 Months Ended
	Mar. 30, 2024
Intangible Assets
Schedule of future amortization to be expensed	​ ​ ​ ​ ​ Amortization expected to be expensed in ​ Amount 2024 ​ $ 265,500 2025 ​ 354,000 2026 ​ 354,000 2027 ​ 354,000 2028 ​ 354,000 Thereafter ​ 1,224,300 ​ ​ $ 2,905,800 ​

Earnings Per Share_ (Tables)

Earnings Per Share: (Tables)	3 Months Ended
	Mar. 30, 2024
Earnings Per Share:
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 30, 2024 April 1, 2023 Denominator for basic EPS — weighted average common shares 3,497,261 3,460,720 Dilutive shares associated with option plans 164,106 133,514 Denominator for diluted EPS — weighted average common shares and dilutive potential common shares 3,661,367 3,594,234 Options excluded from EPS calculation — anti-dilutive 1,667 2,901 ​

Shareholders' Equity (Deficit_2

Shareholders' Equity (Deficit): (Tables)	3 Months Ended
	Mar. 30, 2024
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, 2023 341,892 ​ $ 180.73 ​ 5.98 ​ $ 81,017,600 Exercised (453) ​ ​ 154.53 ​ ​ ​ ​ ​ Outstanding, March 30, 2024 341,439 ​ $ 180.77 ​ 5.73 ​ $ 61,928,500 Exercisable, March 30, 2024 234,286 ​ $ 154.70 ​ 4.67 ​ $ 48,498,036
Schedule of weighted average assumptions used in estimation of fair value of options granted	​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ April 1, 2023 ​ Risk free interest rate ​ 4.13 % Expected life (years) ​ 6 ​ Expected volatility ​ 28.43 % Dividend yield ​ 3.25 % Option fair value ​ $ 69.41 ​ ​

Operating Leases_ (Tables)

Operating Leases: (Tables)	3 Months Ended
	Mar. 30, 2024
Operating Leases:
Schedule of maturities of operating lease liabilities	​ ​ ​ ​ ​ Operating Lease Liabilities expected to be recognized in Amount 2024 ​ $ 525,300 2025 ​ 806,000 2026 ​ 828,200 2027 ​ 851,100 2028 ​ 874,600 Thereafter ​ 898,700 Total lease payments ​ ​ 4,783,900 Less imputed interest ​ ​ (697,600) Present value of lease liabilities ​ $ 4,086,300
Schedule of supplemental cash flow information related to operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ March 30, 2024 April 1, 2023 Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ Operating cash flow outflow from operating leases ​ $ 259,100 ​ $ 189,100 ​

Segment Reporting_ (Tables)

Segment Reporting: (Tables)	3 Months Ended
	Mar. 30, 2024
Segment Reporting:
Schedule of financial information by segment and reconciliation of segment contribution to operating income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 30, 2024 April 1, 2023 Revenue: ​ ​ ​ ​ ​ ​ ​ Franchising ​ $ 19,272,700 ​ $ 18,886,600 ​ Other ​ 836,800 ​ 1,637,000 ​ Total revenue ​ $ 20,109,500 ​ $ 20,523,600 ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation to operating income: ​ ​ ​ ​ ​ ​ ​ Franchising segment contribution ​ $ 11,475,900 ​ $ 11,207,500 ​ Other operating segment contribution ​ 742,300 ​ 1,180,900 ​ Total operating income ​ $ 12,218,200 ​ $ 12,388,400 ​ ​

Management's Interim Financia_2

Management's Interim Financial Statement Representation: (Details)	3 Months Ended
	Mar. 30, 2024 item
Minimum
Number of Weeks in Fiscal Year	52
Maximum
Number of Weeks in Fiscal Year	53

Contract Liabilities_ Activity

Contract Liabilities: Activity (Details) - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Activity of the current and noncurrent deferred franchise revenue
Balance at beginning of period	$ 9,323,600	$ 8,618,100
Franchise and software license fees collected from franchisees, excluding amount earned as revenue during the period	481,000	756,400
Fees earned that were included in the balance at the beginning of the period	(402,900)	(458,700)
Balance at end of period	$ 9,401,700	$ 8,915,800

Contract Liabilities_ Performan

Contract Liabilities: Performance Obligations (Details)	Mar. 30, 2024 USD ($)
Future estimated revenue to be recognized related to performance obligations
Revenue, remaining performance obligation	$ 9,401,700
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31
Future estimated revenue to be recognized related to performance obligations
Duration of expected recognition period for remaining performance obligation	9 months
Revenue, remaining performance obligation	$ 1,187,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29
Future estimated revenue to be recognized related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, remaining performance obligation	$ 1,497,700
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-28
Future estimated revenue to be recognized related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, remaining performance obligation	$ 1,293,300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-12-27
Future estimated revenue to be recognized related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, remaining performance obligation	$ 1,118,600
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-12-26
Future estimated revenue to be recognized related to performance obligations
Duration of expected recognition period for remaining performance obligation	1 year
Revenue, remaining performance obligation	$ 949,200
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-12-31
Future estimated revenue to be recognized related to performance obligations
Duration of expected recognition period for remaining performance obligation
Revenue, remaining performance obligation	$ 3,355,600

Investment in Leasing Operati_3

Investment in Leasing Operations: Leasing Income (Details) - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Leasing income
Interest income on direct financing and sales-type leases	$ 5,900	$ 94,800
Operating lease income	627,800	852,700
Income on sales of equipment under lease	196,700	558,200
Other	6,400	131,300
Leasing income	$ 836,800	$ 1,637,000

Intangible Assets_ Franchise ri

Intangible Assets: Franchise rights (Details) - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Intangible Assets
Amortization of intangible assets	$ 88,500	$ 88,500

Intangible Assets_ Amortization

Intangible Assets: Amortization (Details) - USD ($)	Mar. 30, 2024	Dec. 30, 2023
Future amortization to be expensed:
2024	$ 265,500
2025	354,000
2026	354,000
2027	354,000
2028	354,000
Thereafter	1,224,300
Total	$ 2,905,800	$ 2,994,300

Earnings Per Share_ (Details)

Earnings Per Share: (Details) - shares	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Earnings Per Share:
Denominator for basic EPS - weighted average common shares	3,497,261	3,460,720
Dilutive shares associated with option plans	164,106	133,514
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares	3,661,367	3,594,234
Options excluded from EPS calculation - anti-dilutive (in shares)	1,667	2,901

Shareholders' Equity (Deficit_3

Shareholders' Equity (Deficit): Dividends and Repurchase of Common Stock (Details) - $ / shares		3 Months Ended
	Jan. 31, 2024	Mar. 30, 2024	Apr. 01, 2023
Dividends
Cash dividends declared and paid (in dollars per share)	$ 0.80	$ 0.80	$ 0.70
Common Stock Repurchase Program
Repurchase of Common Stock
Number of shares repurchased		0
Number of additional shares that can be repurchased		78,600

Shareholders' Equity (Deficit_4

Shareholders' Equity (Deficit): Stock Options Activity (Details) - Employee Stock Option [Member] - USD ($)	3 Months Ended		12 Months Ended
	Mar. 30, 2024	Apr. 01, 2023	Dec. 30, 2023
Number of Shares
Outstanding at the beginning of the period (in shares)	341,892
Exercised (in shares)	(453)
Outstanding at the end of the period (in shares)	341,439		341,892
Exercisable at the end of the period (in shares)	234,286
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 180.73
Exercised (in dollars per share)	154.53
Outstanding at the end of the period (in dollars per share)	180.77		$ 180.73
Exercisable at the end of the period (in dollars per share)	$ 154.70
Weighted Average Remaining Contractual Life (years)
Outstanding	5 years 8 months 23 days		5 years 11 months 23 days
Exercisable at the end of the period	4 years 8 months 1 day
Intrinsic Value
Outstanding at the beginning of the period	$ 81,017,600
Outstanding at the end of the period	61,928,500		$ 81,017,600
Exercisable at the end of the period	$ 48,498,036
Weighted average assumptions and results used in estimation of fair value of options granted
Risk free interest rate (as a percent)		4.13%
Expected life (years)		6 years
Expected volatility (as a percent)		28.43%
Dividend yield (as a percent)		3.25%
Option fair value (in dollars per share)		$ 69.41

Shareholders' Equity (Deficit_5

Shareholders' Equity (Deficit): Additional Information (Details) - Employee Stock Option [Member] - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Additional disclosures
Compensation expense	$ 485,900	$ 475,900
Total unrecognized compensation expense	$ 3,800,000
Weighted average period for recognition of unrecognized compensation expense	2 years

Debt_ Line of Credit (Details)

Debt: Line of Credit (Details) $ in Millions	Mar. 30, 2024 USD ($)
Delayed Draw Term Facility
Line of Credit
Borrowings outstanding	$ 30
Delayed Draw Term Facility | Minimum
Line of Credit
Interest rate (as a percent)	4.60%
Delayed Draw Term Facility | Maximum
Line of Credit
Interest rate (as a percent)	4.75%
Revolving Loans
Line of Credit
Borrowings outstanding	$ 0
Line of credit available for additional borrowings	$ 20

Debt_ Notes Payable (Details)

Debt: Notes Payable (Details) - USD ($)		3 Months Ended
	Apr. 17, 2024	Mar. 30, 2024	Sep. 30, 2021	Aug. 31, 2017	May 31, 2015
Note Agreement | Notes Payable.
Notes Payable
Principal amount outstanding		$ 38,100,000
Minimum prepayment		1,000,000
Note Agreement | Series A Notes
Notes Payable
Principal amount outstanding		$ 3,800,000
Note payable, face amount					$ 25,000,000
Debt term		10 years
Interest rate (as a percent)		5.50%
Quarterly principal payment, first five years		$ 500,000
Quarterly principal payment, thereafter		750,000
Note Agreement | Series B Notes
Notes Payable
Principal amount outstanding		$ 4,400,000
Note payable, face amount				$ 12,500,000
Debt term		10 years
Interest rate (as a percent)		5.10%
Quarterly principal payment		$ 312,500
Note Agreement | Series C Notes
Notes Payable
Principal amount outstanding		$ 30,000,000
Note payable, face amount			$ 30,000,000
Debt term		7 years
Interest rate (as a percent)		3.18%
Shelf Agreement | Senior Notes
Notes Payable
Shelf Agreement term	3 years
Maximum amount of Shelf Notes available for issuance.	$ 100,000,000
Minimum prepayment	$ 1,000,000
Shelf Agreement | Senior Notes | Maximum
Notes Payable
Debt term	12 years 6 months

Operating Leases_ Summary (Deta

Operating Leases: Summary (Details) - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Operating Leases:
Remaining lease term	5 years 9 months
Discount rate (as a percent)	5.50%
Rent expense	$ 221,700	$ 299,600

Operating Leases_ Maturities an

Operating Leases: Maturities and other (Details) - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Maturities of operating lease liabilities:
2024	$ 525,300
2025	806,000
2026	828,200
2027	851,100
2028	874,600
Thereafter	898,700
Total	4,783,900
Less imputed interest	(697,600)
Present value of lease liabilities	4,086,300
Operating lease liability
Operating lease liability, current	$ 500,000
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	$ 259,100	$ 189,100

Segment Reporting_ (Details)

Segment Reporting: (Details)	3 Months Ended
	Mar. 30, 2024 USD ($) item	Apr. 01, 2023 USD ($)	Dec. 30, 2023 USD ($)
Segment Reporting
Number of reportable operating segments | item	1
Total revenue	$ 20,109,500	$ 20,523,600
Total operating income	12,218,200	12,388,400
Total identifiable assets	38,336,000		$ 28,967,700
Operating | Franchising
Segment Reporting
Total revenue	19,272,700	18,886,600
Total operating income	11,475,900	11,207,500
Operating | Other.
Segment Reporting
Total revenue	836,800	1,637,000
Total operating income	$ 742,300	$ 1,180,900

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended
	Mar. 30, 2024	Apr. 01, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 8,819,000	$ 8,942,700

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false