Winmark (WINA) 10-Q 23 Apr 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 29, 2014	Apr. 15, 2014
Document and Entity Information	'	'
Entity Registrant Name	'WINMARK CORP	'
Entity Central Index Key	'0000908315	'
Document Type	'10-Q	'
Document Period End Date	29-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-27	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	5,121,458
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONSOLIDATED_CONDENSED_BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (USD $)	Mar. 29, 2014	Dec. 28, 2013
Current Assets:	'	'
Cash and cash equivalents	$2,411,800	$10,642,600
Marketable securities	791,600	736,500
Receivables, less allowance for doubtful accounts of $4,500 and $4,300	1,047,800	1,205,500
Net investment in leases - current	17,174,700	17,239,900
Income tax receivable	'	166,500
Inventories	96,700	96,700
Prepaid expenses	581,700	587,300
Total current assets	22,104,300	30,675,000
Net investment in leases - long-term	22,841,900	20,301,400
Property and equipment, net	1,405,200	1,382,200
Other assets	677,500	677,500
Total assets	47,028,900	53,036,100
Current Liabilities:	'	'
Line of credit	14,000,000	'
Accounts payable	1,616,700	2,441,400
Income tax payable	1,829,200	'
Accrued liabilities	2,126,400	1,233,100
Discounted lease rentals	378,900	424,900
Deferred revenue	2,288,800	2,199,900
Deferred income taxes	4,208,200	4,208,200
Total current liabilities	26,448,200	10,507,500
Long-Term Liabilities:	'	'
Discounted lease rentals	204,300	277,400
Deferred revenue	1,238,700	1,180,700
Other liabilities	1,480,500	1,489,000
Deferred income taxes	1,436,800	1,436,800
Total long-term liabilities	4,360,300	4,383,900
Shareholders' Equity:	'	'
Common stock, no par, 10,000,000 shares authorized, 5,144,589 and 5,143,530 shares issued and outstanding	2,506,500	2,949,500
Accumulated other comprehensive loss	-13,900	-4,100
Retained earnings	13,727,800	35,199,300
Total shareholders' equity	16,220,400	38,144,700
Total liabilities and shareholders' equity	$47,028,900	$53,036,100

CONSOLIDATED_CONDENSED_BALANCE1

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 29, 2014	Dec. 28, 2013
CONSOLIDATED CONDENSED BALANCE SHEETS	'	'
Receivables, allowance for doubtful accounts (in dollars)	$4,500	$4,300
Common Stock	'	'
Statement	'	'
Common stock, par value (in dollars per share)	'	'
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,144,589	5,143,530
Common stock, shares outstanding	5,144,589	5,143,530

CONSOLIDATED_CONDENSED_STATEME

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
REVENUE:	'	'
Royalties	$8,810,000	$8,474,900
Leasing income	4,375,600	3,407,800
Merchandise sales	788,000	665,700
Franchise fees	349,000	414,600
Other	230,000	185,400
Total revenue	14,552,600	13,148,400
COST OF MERCHANDISE SOLD	754,700	641,100
LEASING EXPENSE	306,600	279,700
PROVISION FOR CREDIT LOSSES	38,900	13,800
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	6,017,900	5,537,900
Income from operations	7,434,500	6,675,900
INTEREST EXPENSE	-62,100	-89,500
INTEREST AND OTHER INCOME (EXPENSE)	100	-10,200
Income before income taxes	7,372,500	6,576,200
PROVISION FOR INCOME TAXES	-2,820,600	-2,518,700
NET INCOME	$4,551,900	$4,057,500
EARNINGS PER SHARE - BASIC (in dollars per share)	$0.88	$0.81
EARNINGS PER SHARE - DILUTED (in dollars per share)	$0.86	$0.78
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares)	5,148,519	4,997,322
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares)	5,307,946	5,202,696

CONSOLIDATED_CONDENSED_STATEME1

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME	'	'
NET INCOME	$4,551,900	$4,057,500
Unrealized net gains (losses) on marketable securities:	'	'
Unrealized holding net gains (losses) arising during period	-12,000	3,400
Reclassification adjustment for net gains included in net income	-3,800	'
OTHER COMPREHENSIVE INCOME (LOSS), BEFORE TAX	-15,800	3,400
Unrealized net gains/losses on marketable securities:	'	'
Unrealized holding net gains arising during period	4,600	-1,300
Reclassification adjustment for net gains included in net income	1,400	'
INCOME TAX (EXPENSE) BENEFIT RELATED TO ITEMS OF OTHER COMPREHENSIVE INCOME	6,000	-1,300
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	-9,800	2,100
COMPREHENSIVE INCOME	$4,542,100	$4,059,600

CONSOLIDATED_CONDENSED_STATEME2

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
OPERATING ACTIVITIES:	'	'
Net income	$4,551,900	$4,057,500
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation	105,300	107,000
Provision for credit losses	38,900	13,800
Compensation expense related to stock options	344,500	261,700
Gain on sale of marketable securities	-9,400	'
Deferred initial direct costs	-520,300	-172,900
Amortization of deferred initial direct costs	163,600	140,800
Tax benefits on exercised stock options	-60,000	'
Change in operating assets and liabilities:	'	'
Receivables	157,700	26,000
Income tax receivable / payable	2,061,700	2,158,800
Inventories	'	-800
Prepaid expenses	5,600	22,700
Accounts payable	-824,700	-375,200
Accrued and other liabilities	876,600	311,400
Rents received in advance and security deposits	-41,100	265,100
Deferred revenue	146,900	-92,900
Net cash provided by operating activities	6,997,200	6,723,000
INVESTING ACTIVITIES:	'	'
Proceeds from sale of marketable securities	463,000	'
Purchase of marketable securities	-524,500	'
Purchase of property and equipment	-128,300	-53,600
Purchase of equipment for lease contracts	-6,499,900	-4,673,500
Principal collections on lease receivables	4,272,600	4,530,300
Net cash used for investing activities	-2,417,100	-196,800
FINANCING ACTIVITIES:	'	'
Proceeds from borrowings on line of credit	14,000,000	'
Payments on line of credit	'	-6,300,000
Repurchases of common stock	-1,075,100	-269,600
Proceeds from exercises of stock options	227,600	120,600
Dividends paid	-26,023,400	-200,000
Proceeds from discounted lease rentals	'	80,900
Tax benefits on exercised stock options	60,000	'
Net cash used for financing activities	-12,810,900	-6,568,100
NET DECREASE IN CASH AND CASH EQUIVALENTS	-8,230,800	-41,900
Cash and cash equivalents, beginning of period	10,642,600	2,233,400
Cash and cash equivalents, end of period	2,411,800	2,191,500
SUPPLEMENTAL DISCLOSURES:	'	'
Cash paid for interest	29,800	84,700
Cash paid for income taxes	$762,300	$359,800

Managements_Interim_Financial_

Management's Interim Financial Statement Representation:	3 Months Ended
	Mar. 29, 2014
Management's Interim Financial Statement Representation:	'
Management's Interim Financial Statement Representation:	'
	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 29, 2014 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 as previously reported.

Organization_and_Business

Organization and Business:	3 Months Ended
	Mar. 29, 2014
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®, Music Go Round® and Style Encore®.  The Company also operates both middle market and small-ticket equipment leasing businesses under the Winmark Capital® and Wirth Business Credit® marks.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 29, 2014
Fair Value Measurements	'
Fair Value Measurements	'
	3.                                      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.
	The Company’s marketable securities were valued based on Level 1 inputs using quoted prices.
	Due to their nature, the carrying value of cash equivalents, receivables, payables and debt obligations approximates fair value.

Investments

Investments:	3 Months Ended
	Mar. 29, 2014
Investments:	'
Investments:	'
	4.              Investments:
	Marketable Securities
	The following is a summary of marketable securities classified as available-for-sale securities:
		March 29, 2014						December 28, 2013
		Cost			Fair Value			Cost		Fair Value
	Equity securities	$	814,000		$	791,600		$	743,100	$	736,500
	The Company’s unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss are as follows:
		March 29, 2014			December 28, 2013
	Unrealized gains	$	5,800		$	6,800
	Unrealized losses	(28,200		)	(13,400		)
	Net unrealized losses	$	(22,400	)	$	(6,600	)
	The Company’s realized gains and losses recognized on sales of available-for-sale marketable securities are as follows:
		Three Months Ended
		March 29, 2014			March 30, 2013
	Realized gains	$	22,200		$	—
	Realized losses	(12,800		)	—
	Net realized gains	$	9,400		$	—
	Amounts reclassified out of accumulated other comprehensive loss into earnings is determined by using the average cost of the security when sold.  Gross realized gains (losses) reclassified out of accumulated other comprehensive loss into earnings are included in Interest and Other Income (Expense) and the related tax benefits (expenses) are included in the Provision for Income Taxes lines of the Consolidated Condensed Statements of Operations.

Investment_in_Leasing_Operatio

Investment in Leasing Operations:	3 Months Ended
	Mar. 29, 2014
Investment in Leasing Operations:	'
Investment in Leasing Operations:	'
	5.                                      Investment in Leasing Operations:
	Investment in leasing operations consists of the following:
		March 29, 2014			December 28, 2013
	Direct financing and sales-type leases:
	Minimum lease payments receivable	$	38,245,300		$	35,450,900
	Estimated residual value of equipment	3,953,400			4,348,800
	Unearned lease income net of initial direct costs deferred	(6,700,400		)	(4,963,400		)
	Security deposits	(3,276,300		)	(3,325,600		)
	Equipment installed on leases not yet commenced	8,570,300			6,718,000
	Total investment in direct financing and sales-type leases	40,792,300			38,228,700
	Allowance for credit losses	(870,600		)	(822,700		)
	Net investment in direct financing and sales-type leases	39,921,700			37,406,000
	Operating leases:
	Operating lease assets	375,200			1,353,500
	Less accumulated depreciation and amortization	(280,300		)	(1,218,200		)
	Net investment in operating leases	94,900			135,300
	Total net investment in leasing operations	$	40,016,600		$	37,541,300
	As of March 29, 2014, the $40.0 million total net investment in leases consists of $17.2 million classified as current and $22.8 million classified as long-term.  As of December 28, 2013, the $37.5 million total net investment in leases consists of $17.2 million classified as current and $20.3 million classified as long-term.
	As of March 29, 2014, no customer had leased assets totaling more than 10% of the Company’s total assets.
	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 2014 and the full fiscal years thereafter as of March 29, 2014:
		Direct Financing and Sales-Type Leases						Operating Leases
		Minimum Lease			Income			Minimum Lease
		Payments Receivable			Amortization			Payments Receivable
	2014	$	17,918,600		$	4,101,800		$	204,800
	2015	15,189,200			2,200,900			76,800
	2016	4,953,500			396,500			—
	2017	184,000			1,200			—
	2018	—			—			—
	Thereafter	—			—			—
		$	38,245,300		$	6,700,400		$	281,600
	The activity in the allowance for credit losses for leasing operations during the first three months of 2014 and 2013, respectively, is as follows:
		March 29, 2014			March 30, 2013
	Balance at beginning of period	$	822,700		$	775,800
	Provisions charged to expense	38,900			13,800
	Recoveries	9,000			21,300
	Deductions for amounts written-off	—			(10,900		)
	Balance at end of period	$	870,600		$	800,000
	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 29, 2014						December 28, 2013
		Investment			Allowance for			Investment		Allowance for
		In Leases			Credit Losses			In Leases		Credit Losses
	Collectively evaluated for loss potential	$	40,792,300		$	870,600		$	38,228,700	$	822,700
	Individually evaluated for loss potential	—			—			—		—
	Total	$	40,792,300		$	870,600		$	38,228,700	$	822,700
	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-accruing.  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 29, 2014
		0-60 Days			61-90 Days			Over 90 Days		Non-Accrual		Total
		Delinquent			Delinquent			Delinquent and
		and Accruing			and Accruing			Accruing
	Middle-Market	$	39,281,800		$	—		$	—	$	322,300	$	39,604,100
	Small-Ticket	1,188,200			—			—		—		1,188,200
	Total Investment in Leases	$	40,470,000		$	—		$	—	$	322,300	$	40,792,300
		December 28, 2013
		0-60 Days			61-90 Days			Over 90 Days		Non-Accrual		Total
		Delinquent			Delinquent			Delinquent and
		and Accruing			and Accruing			Accruing
	Middle-Market	$	36,716,100		$	—		$	—	$	416,400	$	37,132,500
	Small-Ticket	1,096,200			—			—		—		1,096,200
	Total Investment in Leases	$	37,812,300		$	—		$	—	$	416,400	$	38,228,700

Earnings_Per_Share

Earnings Per Share:	3 Months Ended
	Mar. 29, 2014
Earnings Per Share:	'
Earnings Per Share:	'
	6.              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 29, 2014	March 30, 2013
	Denominator for basic EPS — weighted average common shares	5,148,519	4,997,322
	Dilutive shares associated with option plans	159,427	205,374
	Denominator for diluted EPS — weighted average common shares and dilutive potential common shares	5,307,946	5,202,696
	Options excluded from EPS calculation — anti-dilutive	13,938	9,299

Shareholders_Equity

Shareholders' Equity:	3 Months Ended
	Mar. 29, 2014
Shareholders' Equity:	'
Shareholders' Equity:	'
	7.              Shareholders’ Equity:
	Dividends
	On January 29, 2014, the Company’s Board of Directors approved the payment of a $0.05 per share quarterly cash dividend to shareholders of record at the close of business on February 12, 2014, which was paid on March 3, 2014.
	On February 4, 2014, the Company’s Board of Directors approved the payment of a $5.00 per share special cash dividend (the “2014 Special Dividend”) to shareholders of record at the close of business February 17, 2014, which was paid on March 3, 2014.  The 2014 Special Dividend totaled $25.8 million and was financed by a combination of cash on hand as well as net borrowings under the Line of Credit of $13.0 million (see Note 8 — “Line of Credit”).
	Repurchase of Common Stock
	In the first three months of 2014 the Company repurchased 14,066 shares of its common stock for an aggregate price of $1,075,100 or $76.43 per share.  Under the Board of Directors’ authorization, as of March 29, 2014, the Company has the ability to repurchase an additional 318,664 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 29, 2014, the Company has authorized up to 250,000 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, as of March 29, 2014, has reserved a total of 300,000 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 29, 2014 was as follows:
		Number of		Weighted		Weighted Average	Intrinsic Value
		Shares		Average		Remaining Contractual
				Exercise Price		Life (years)
	Outstanding at December 28, 2013	526,712		$	42.87	7.33	$	26,446,700
	Exercised	(15,125	)	15.05
	Outstanding at March 29, 2014	511,587		$	43.69	7.14	$	16,222,100
	Exercisable at March 29, 2014	258,762		$	30.5	5.92	$	11,418,400
	No options were granted during the three months ended March 29, 2014 or the three months ended March 30, 2013.  All unexercised options at March 29, 2014 have an exercise price equal to the fair market value on the date of the grant.
	Compensation expense of $344,500 and $261,700 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 2014 and 2013, respectively.  As of March 29, 2014, the Company had $3.0 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.

Line_of_Credit

Line of Credit	3 Months Ended
	Mar. 29, 2014
Line of Credit	'
Line of Credit	'
	8.  Line of Credit
	On February 21, 2014, the Company’s Line of Credit with The PrivateBank and Trust Company and BMO Harris Bank N.A. was amended to, among other things, amend certain financial covenant calculations to remove the effect of the 2014 Special Dividend in such calculations, to reduce the applicable margin on the interest rate options, and to extend the termination date from February 29, 2016 to February 28, 2018.
	The Line of Credit provides for an aggregate commitment of $35.0 million, subject to certain borrowing base limitations.  During the first three months of 2014, the Line of Credit was used to finance in part the 2014 Special Dividend (as indicated above) and has been and will continue to be used for general corporate purposes.  The Line of Credit is secured by a lien against substantially all of the Company’s assets, contains customary financial conditions and covenants, and requires maintenance of minimum levels of debt service coverage and tangible net worth and maximum levels of leverage (all as defined within the Line of Credit).  As of March 29, 2014, the Company was in compliance with all of its financial covenants.  There were $14.0 million in borrowings outstanding under the Line of Credit bearing interest ranging from 2.40% to 3.25%, leaving $21.0 million available for additional borrowings.

Discounted_Lease_Rentals

Discounted Lease Rentals:	3 Months Ended
	Mar. 29, 2014
Discounted Lease Rentals:	'
Discounted Lease Rentals:	'
	9.              Discounted Lease Rentals:
	The Company utilized certain lease receivables and underlying expenses as collateral to borrow from financial institutions at a weighted average rate of 3.27% at March 29, 2014 on a non-recourse basis.

Segment_Reporting

Segment Reporting:	3 Months Ended
	Mar. 29, 2014
Segment Reporting:	'
Segment Reporting:	'
	10.       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. The leasing segment includes (i) Winmark Capital Corporation, a middle-market equipment leasing business and (ii) Wirth Business Credit, Inc., a small ticket financing business. Segment reporting is intended to give financial statement users a better view of how the Company manages and evaluates its businesses. The Company’s internal management reporting is the basis for the information disclosed for its business segments and includes allocation of shared-service costs. Segment assets are those that are directly used in or identified with segment operations, including cash, accounts receivable, prepaids, inventory, property and equipment and investment in leasing operations. Unallocated assets include corporate cash and cash equivalents, marketable securities, current and deferred tax amounts and other corporate assets. Inter-segment balances and transactions have been eliminated. The following tables summarize financial information by segment and provide a reconciliation of segment contribution to operating income:
		Three Months Ended
		March 29, 2014		March 30, 2013
	Revenue:
	Franchising	$	10,177,000	$	9,740,600
	Leasing	4,375,600		3,407,800
	Total revenue	$	14,552,600	$	13,148,400
	Reconciliation to operating income:
	Franchising segment contribution	$	4,701,200	$	4,834,100
	Leasing segment contribution	2,733,300		1,841,800
	Total operating income	$	7,434,500	$	6,675,900
	Depreciation:
	Franchising	$	83,100	$	84,200
	Leasing	22,200		22,800
	Total depreciation	$	105,300	$	107,000
		As of
		March 29, 2014		December 28, 2013
	Identifiable assets:
	Franchising	$	2,534,100	$	7,407,400
	Leasing	41,499,000		42,490,800
	Unallocated	2,995,800		3,137,900
	Total	$	47,028,900	$	53,036,100

Managements_Interim_Financial_1

Management's Interim Financial Statement Representation: (Policies)	3 Months Ended
	Mar. 29, 2014
Management's Interim Financial Statement Representation:	'
Reclassifications	'
	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 as previously reported.

Investments_Tables

Investments: (Tables)	3 Months Ended
	Mar. 29, 2014
Investments:	'
Summary of marketable securities classified as available-for-sale securities	'
		March 29, 2014						December 28, 2013
		Cost			Fair Value			Cost		Fair Value
	Equity securities	$	814,000		$	791,600		$	743,100	$	736,500
Schedule of the Company's unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss	'
		March 29, 2014			December 28, 2013
	Unrealized gains	$	5,800		$	6,800
	Unrealized losses	(28,200		)	(13,400		)
	Net unrealized losses	$	(22,400	)	$	(6,600	)
Schedule of the Company's realized gains and losses recognized on sales of available-for-sale marketable securities	'
		Three Months Ended
		March 29, 2014			March 30, 2013
	Realized gains	$	22,200		$	—
	Realized losses	(12,800		)	—
	Net realized gains	$	9,400		$	—

Investment_in_Leasing_Operatio1

Investment in Leasing Operations: (Tables)	3 Months Ended
	Mar. 29, 2014
Investment in Leasing Operations:	'
Schedule of investment in leasing operations	'
		March 29, 2014			December 28, 2013
	Direct financing and sales-type leases:
	Minimum lease payments receivable	$	38,245,300		$	35,450,900
	Estimated residual value of equipment	3,953,400			4,348,800
	Unearned lease income net of initial direct costs deferred	(6,700,400		)	(4,963,400		)
	Security deposits	(3,276,300		)	(3,325,600		)
	Equipment installed on leases not yet commenced	8,570,300			6,718,000
	Total investment in direct financing and sales-type leases	40,792,300			38,228,700
	Allowance for credit losses	(870,600		)	(822,700		)
	Net investment in direct financing and sales-type leases	39,921,700			37,406,000
	Operating leases:
	Operating lease assets	375,200			1,353,500
	Less accumulated depreciation and amortization	(280,300		)	(1,218,200		)
	Net investment in operating leases	94,900			135,300
	Total net investment in leasing operations	$	40,016,600		$	37,541,300
Schedule of future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred	'
	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 2014 and the full fiscal years thereafter as of March 29, 2014:
		Direct Financing and Sales-Type Leases						Operating Leases
		Minimum Lease			Income			Minimum Lease
		Payments Receivable			Amortization			Payments Receivable
	2014	$	17,918,600		$	4,101,800		$	204,800
	2015	15,189,200			2,200,900			76,800
	2016	4,953,500			396,500			—
	2017	184,000			1,200			—
	2018	—			—			—
	Thereafter	—			—			—
		$	38,245,300		$	6,700,400		$	281,600
Schedule of activity in the allowance for credit losses for leasing operations	'
		March 29, 2014			March 30, 2013
	Balance at beginning of period	$	822,700		$	775,800
	Provisions charged to expense	38,900			13,800
	Recoveries	9,000			21,300
	Deductions for amounts written-off	—			(10,900		)
	Balance at end of period	$	870,600		$	800,000
Schedule of investment in direct financing and sales-type leases (investment in leases) and allowance for credit losses by loss evaluation methodology	'
		March 29, 2014						December 28, 2013
		Investment			Allowance for			Investment		Allowance for
		In Leases			Credit Losses			In Leases		Credit Losses
	Collectively evaluated for loss potential	$	40,792,300		$	870,600		$	38,228,700	$	822,700
	Individually evaluated for loss potential	—			—			—		—
	Total	$	40,792,300		$	870,600		$	38,228,700	$	822,700
Schedule of information regarding accruing and non-accrual leases	'
		March 29, 2014
		0-60 Days			61-90 Days			Over 90 Days		Non-Accrual		Total
		Delinquent			Delinquent			Delinquent and
		and Accruing			and Accruing			Accruing
	Middle-Market	$	39,281,800		$	—		$	—	$	322,300	$	39,604,100
	Small-Ticket	1,188,200			—			—		—		1,188,200
	Total Investment in Leases	$	40,470,000		$	—		$	—	$	322,300	$	40,792,300
		December 28, 2013
		0-60 Days			61-90 Days			Over 90 Days		Non-Accrual		Total
		Delinquent			Delinquent			Delinquent and
		and Accruing			and Accruing			Accruing
	Middle-Market	$	36,716,100		$	—		$	—	$	416,400	$	37,132,500
	Small-Ticket	1,096,200			—			—		—		1,096,200
	Total Investment in Leases	$	37,812,300		$	—		$	—	$	416,400	$	38,228,700

Earnings_Per_Share_Tables

Earnings Per Share: (Tables)	3 Months Ended
	Mar. 29, 2014
Earnings Per Share:	'
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share	'
		Three Months Ended
		March 29, 2014	March 30, 2013
	Denominator for basic EPS — weighted average common shares	5,148,519	4,997,322
	Dilutive shares associated with option plans	159,427	205,374
	Denominator for diluted EPS — weighted average common shares and dilutive potential common shares	5,307,946	5,202,696
	Options excluded from EPS calculation — anti-dilutive	13,938	9,299

Shareholders_Equity_Tables

Shareholders' Equity: (Tables)	3 Months Ended
	Mar. 29, 2014
Shareholders' Equity:	'
Schedule of stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan	'
		Number of		Weighted		Weighted Average	Intrinsic Value
		Shares		Average		Remaining Contractual
				Exercise Price		Life (years)
	Outstanding at December 28, 2013	526,712		$	42.87	7.33	$	26,446,700
	Exercised	(15,125	)	15.05
	Outstanding at March 29, 2014	511,587		$	43.69	7.14	$	16,222,100
	Exercisable at March 29, 2014	258,762		$	30.5	5.92	$	11,418,400

Segment_Reporting_Tables

Segment Reporting: (Tables)	3 Months Ended
	Mar. 29, 2014
Segment Reporting:	'
Schedule of financial information by segment and reconciliation of segment contribution to operating income	'
		Three Months Ended
		March 29, 2014		March 30, 2013
	Revenue:
	Franchising	$	10,177,000	$	9,740,600
	Leasing	4,375,600		3,407,800
	Total revenue	$	14,552,600	$	13,148,400
	Reconciliation to operating income:
	Franchising segment contribution	$	4,701,200	$	4,834,100
	Leasing segment contribution	2,733,300		1,841,800
	Total operating income	$	7,434,500	$	6,675,900
	Depreciation:
	Franchising	$	83,100	$	84,200
	Leasing	22,200		22,800
	Total depreciation	$	105,300	$	107,000
		As of
		March 29, 2014		December 28, 2013
	Identifiable assets:
	Franchising	$	2,534,100	$	7,407,400
	Leasing	41,499,000		42,490,800
	Unallocated	2,995,800		3,137,900
	Total	$	47,028,900	$	53,036,100

Managements_Interim_Financial_2

Management's Interim Financial Statement Representation: (Details)	3 Months Ended
	Mar. 29, 2014
	WK
Management's Interim Financial Statement Representation:	'
Minimum number of weeks in a fiscal year	52
Maximum number of weeks in a fiscal year	53

Investments_Details

Investments: (Details) (USD $)	3 Months Ended
	Mar. 29, 2014	Dec. 28, 2013
Summary of marketable securities classified as available-for-sale securities	'	'
Equity securities, Cost	$814,000	$743,100
Equity securities, Fair Value	791,600	736,500
Unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss	'	'
Unrealized gains	5,800	6,800
Unrealized losses	-28,200	-13,400
Net unrealized losses	-22,400	-6,600
Realized gains and losses recognized on sales of available-for-sale marketable securities	'	'
Realized gains	22,200	'
Realized losses	-12,800	'
Net realized gains	$9,400	'

Investment_in_Leasing_Operatio2

Investment in Leasing Operations: (Details) (USD $)	Mar. 29, 2014	Dec. 28, 2013
Direct financing and sales-type leases:	'	'
Minimum lease payments receivable	$38,245,300	$35,450,900
Estimated residual value of equipment	3,953,400	4,348,800
Unearned lease income net of initial direct costs deferred	-6,700,400	-4,963,400
Security deposits	-3,276,300	-3,325,600
Equipment installed on leases not yet commenced	8,570,300	6,718,000
Total investment in direct financing and sales-type leases	40,792,300	38,228,700
Allowance for credit losses	-870,600	-822,700
Net investment in direct financing and sales-type leases	39,921,700	37,406,000
Operating leases:	'	'
Operating lease assets	375,200	1,353,500
Less accumulated depreciation and amortization	-280,300	-1,218,200
Net investment in operating leases	94,900	135,300
Total net investment in leasing operations	40,016,600	37,541,300
Net investment in leases - current	17,174,700	17,239,900
Net investment in leases - long-term	$22,841,900	$20,301,400

Investment_in_Leasing_Operatio3

Investment in Leasing Operations: (Details 2) (Total assets, Customer one concentration risk for leased assets)	3 Months Ended
	Mar. 29, 2014
	customer
Total assets | Customer one concentration risk for leased assets	'
Investment in leasing operations	'
Number of customers	0
Percentage of concentration risk	10.00%

Investment_in_Leasing_Operatio4

Investment in Leasing Operations: (Details 3) (USD $)	Mar. 29, 2014	Dec. 28, 2013
Direct Financing and Sales-Type Leases, Minimum Lease Payments Receivable	'	'
2014	$17,918,600	'
2015	15,189,200	'
2016	4,953,500	'
2017	184,000	'
Total	38,245,300	35,450,900
Direct Financing and Sales-Type Leases, Income Amortization	'	'
2014	4,101,800	'
2015	2,200,900	'
2016	396,500	'
2017	1,200	'
Total	6,700,400	'
Operating Leases, Minimum Lease Payments Receivable	'	'
2014	204,800	'
2015	76,800	'
Total	$281,600	'

Investment_in_Leasing_Operatio5

Investment in Leasing Operations: (Details 4) (Investment in leases, USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Investment in leases	'	'
Activity in the allowance for credit losses for leasing operations	'	'
Balance at beginning of period	$822,700	$775,800
Provisions charged to expense	38,900	13,800
Recoveries	9,000	21,300
Deductions for amounts written-off	'	-10,900
Balance at end of period	$870,600	$800,000

Investment_in_Leasing_Operatio6

Investment in Leasing Operations: (Details 5) (USD $)	Mar. 29, 2014	Dec. 28, 2013
Investment In Leases	'	'
Total investment in direct financing and sales-type leases	$40,792,300	$38,228,700
Allowance for Credit Losses	'	'
Total	870,600	822,700
Investment in leases	'	'
Investment In Leases	'	'
Collectively evaluated for loss potential	40,792,300	38,228,700
Total investment in direct financing and sales-type leases	40,792,300	38,228,700
Allowance for Credit Losses	'	'
Collectively evaluated for loss potential	870,600	822,700
Total	$870,600	$822,700

Investment_in_Leasing_Operatio7

Investment in Leasing Operations: (Details 6) (USD $)	Mar. 29, 2014	Dec. 28, 2013
Investment in leasing operations	'	'
0-60 Days Delinquent and Accruing	$40,470,000	$37,812,300
Non-Accrual	322,300	416,400
Total investment in direct financing and sales-type leases	40,792,300	38,228,700
Middle-Market	'	'
Investment in leasing operations	'	'
0-60 Days Delinquent and Accruing	39,281,800	36,716,100
Non-Accrual	322,300	416,400
Total investment in direct financing and sales-type leases	39,604,100	37,132,500
Small-Ticket	'	'
Investment in leasing operations	'	'
0-60 Days Delinquent and Accruing	1,188,200	1,096,200
Total investment in direct financing and sales-type leases	$1,188,200	$1,096,200

Earnings_Per_Share_Details

Earnings Per Share: (Details)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Earnings Per Share:	'	'
Denominator for basic EPS - weighted average common shares	5,148,519	4,997,322
Dilutive shares associated with option plans	159,427	205,374
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares	5,307,946	5,202,696
Options excluded from EPS calculation - anti-dilutive (in shares)	13,938	9,299

Shareholders_Equity_Details

Shareholders' Equity: (Details) (USD $)	0 Months Ended		3 Months Ended
	Feb. 04, 2014	Jan. 29, 2014	Mar. 29, 2014
			Common Stock Repurchase Program
Dividends	'	'	'
Cash dividend approved by Board of Directors (in dollars per share)	'	$0.05	'
Special cash dividend approved by Board of Directors (in dollars per share)	$5	'	'
Total special dividend in cash	$25,800,000	'	'
Borrowings on line of credit for special dividend	13,000,000	'	'
Repurchase of Common Stock	'	'	'
Number of shares repurchased	'	'	14,066
Aggregate purchase price of shares repurchased (in dollars)	'	'	$1,075,100
Aggregate purchase price per share of shares repurchased (in dollars per share)	'	'	$76.43
Number of additional shares that can be repurchased	'	'	318,664

Shareholders_Equity_Details_2

Shareholders' Equity: (Details 2) (Stock options, USD $)	3 Months Ended		12 Months Ended
	Mar. 29, 2014	Mar. 30, 2013	Dec. 28, 2013
Number of Shares	'	'	'
Outstanding at the beginning of the period (in shares)	526,712	'	'
Exercised (in shares)	-15,125	'	'
Outstanding at the end of the period (in shares)	511,587	'	526,712
Exercisable at the end of the period (in shares)	258,762	'	'
Granted (in shares)	0	0	'
Weighted Average Exercise Price	'	'	'
Outstanding at the beginning of the period (in dollars per share)	$42.87	'	'
Exercised (in dollars per share)	$15.05	'	'
Outstanding at the end of the period (in dollars per share)	$43.69	'	$42.87
Exercisable at the end of the period (in dollars per share)	$30.50	'	'
Weighted Average Remaining Contractual Life (years)	'	'	'
Outstanding	'7 years 1 month 20 days	'	'7 years 3 months 29 days
Exercisable at the end of the period	'5 years 11 months 1 day	'	'
Intrinsic Value	'	'	'
Outstanding at the beginning of the period	$26,446,700	'	'
Outstanding at the end of the period	16,222,100	'	26,446,700
Exercisable at the end of the period	$11,418,400	'	'
2001 Plan	'	'	'
Stock option plans	'	'	'
Number of shares authorized for issuance	750,000	'	'
2010 Plan	'	'	'
Stock option plans	'	'	'
Number of shares authorized for issuance	250,000	'	'
Nonemployee Directors Plan	'	'	'
Stock option plans	'	'	'
Number of shares authorized for issuance	300,000	'	'

Shareholders_Equity_Details_3

Shareholders' Equity: (Details 3) (Stock options, USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Stock options	'	'
Additional disclosures	'	'
Compensation expense	$344,500	$261,700
Total unrecognized compensation expense	$3,000,000	'
Weighted average period for recognition of unrecognized compensation expense	'2 years 4 months 24 days	'

Line_of_Credit_Details

Line of Credit (Details) (Line of Credit, USD $)	Mar. 29, 2014
In Millions, unless otherwise specified
Line of Credit	'
Aggregate commitments	$35
Borrowings outstanding	14
Amount available for additional borrowings	$21
Minimum	'
Line of Credit	'
Interest rate (as a percent)	2.40%
Maximum	'
Line of Credit	'
Interest rate (as a percent)	3.25%

Discounted_Lease_Rentals_Detai

Discounted Lease Rentals: (Details)	Mar. 29, 2014
Discounted Lease Rentals:	'
Weighted average interest rate on a non-recourse basis (as a percent)	3.27%

Segment_Reporting_Details

Segment Reporting: (Details) (USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013	Dec. 28, 2013
	item
Segment Reporting:	'	'	'
Number of reportable business segments	2	'	'
Segment Reporting	'	'	'
Total revenue	$14,552,600	$13,148,400	'
Total operating income	7,434,500	6,675,900	'
Total depreciation	105,300	107,000	'
Total identifiable assets	47,028,900	'	53,036,100
Operating | Franchising	'	'	'
Segment Reporting	'	'	'
Total revenue	10,177,000	9,740,600	'
Total operating income	4,701,200	4,834,100	'
Total depreciation	83,100	84,200	'
Total identifiable assets	2,534,100	'	7,407,400
Operating | Leasing	'	'	'
Segment Reporting	'	'	'
Total revenue	4,375,600	3,407,800	'
Total operating income	2,733,300	1,841,800	'
Total depreciation	22,200	22,800	'
Total identifiable assets	41,499,000	'	42,490,800
Unallocated	'	'	'
Segment Reporting	'	'	'
Total identifiable assets	$2,995,800	'	$3,137,900