Winmark (WINA) 10-Q 23 Jul 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 28, 2014	Jul. 16, 2014
Document and Entity Information	'	'
Entity Registrant Name	'WINMARK CORP	'
Entity Central Index Key	'0000908315	'
Document Type	'10-Q	'
Document Period End Date	28-Jun-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	'	5,048,465
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONSOLIDATED_CONDENSED_BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (USD $)	Jun. 28, 2014	Dec. 28, 2013
Current Assets:	'	'
Cash and cash equivalents	$2,144,700	$10,642,600
Marketable securities	839,900	736,500
Receivables, less allowance for doubtful accounts of $4,000 and $4,300	1,088,000	1,205,500
Net investment in leases - current	21,023,400	17,239,900
Income tax receivable	748,500	166,500
Inventories	78,600	96,700
Prepaid expenses	393,500	587,300
Total current assets	26,316,600	30,675,000
Net investment in leases - long-term	22,203,600	20,301,400
Property and equipment, net	1,517,700	1,382,200
Other assets	677,500	677,500
Total assets	50,715,400	53,036,100
Current Liabilities:	'	'
Line of credit	23,100,000	'
Accounts payable	1,423,500	2,441,400
Accrued liabilities	2,571,300	1,233,100
Discounted lease rentals	313,600	424,900
Deferred revenue	2,116,800	2,199,900
Deferred income taxes	3,276,600	4,208,200
Total current liabilities	32,801,800	10,507,500
Long-Term Liabilities:	'	'
Discounted lease rentals	149,600	277,400
Deferred revenue	1,266,300	1,180,700
Other liabilities	1,433,800	1,489,000
Deferred income taxes	465,700	1,436,800
Total long-term liabilities	3,315,400	4,383,900
Shareholders' Equity:	'	'
Common stock, no par, 10,000,000 shares authorized, 5,062,380 and 5,143,530 shares issued and outstanding	'	2,949,500
Accumulated other comprehensive loss	-3,200	-4,100
Retained earnings	14,601,400	35,199,300
Total shareholders' equity	14,598,200	38,144,700
Total liabilities and shareholders' equity	$50,715,400	$53,036,100

CONSOLIDATED_CONDENSED_BALANCE1

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 28, 2014	Dec. 28, 2013
CONSOLIDATED CONDENSED BALANCE SHEETS	'	'
Receivables, allowance for doubtful accounts (in dollars)	$4,000	$4,300
Common Stock [Member]	'	'
Statement	'	'
Common stock, par value (in dollars per share)	$0	$0
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,062,380	5,143,530
Common stock, shares outstanding	5,062,380	5,143,530

CONSOLIDATED_CONDENSED_STATEME

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
REVENUE:	'	'	'	'
Royalties	$9,200,800	$8,608,200	$18,010,800	$17,083,100
Leasing income	3,157,600	4,130,200	7,533,200	7,538,000
Merchandise sales	685,800	557,400	1,473,800	1,223,100
Franchise fees	607,500	389,600	956,500	804,200
Other	387,200	338,100	617,200	523,500
Total revenue	14,038,900	14,023,500	28,591,500	27,171,900
COST OF MERCHANDISE SOLD	659,300	524,400	1,414,000	1,165,500
LEASING EXPENSE	119,100	610,500	425,700	890,200
PROVISION FOR CREDIT LOSSES	-11,100	-51,700	27,800	-37,900
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	6,179,000	5,879,100	12,196,900	11,417,000
Income from operations	7,092,600	7,061,200	14,527,100	13,737,100
INTEREST EXPENSE	-144,100	-55,100	-206,200	-144,600
INTEREST AND OTHER INCOME (EXPENSE)	900	-100	1,000	-10,300
Income before income taxes	6,949,400	7,006,000	14,321,900	13,582,200
PROVISION FOR INCOME TAXES	-2,668,600	-2,669,100	-5,489,200	-5,187,800
NET INCOME	$4,280,800	$4,336,900	$8,832,700	$8,394,400
EARNINGS PER SHARE - BASIC (in dollars per share)	$0.84	$0.86	$1.72	$1.68
EARNINGS PER SHARE - DILUTED (in dollars per share)	$0.82	$0.83	$1.67	$1.61
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares)	5,109,049	5,024,284	5,128,789	5,010,803
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares)	5,243,123	5,200,592	5,275,539	5,201,644

CONSOLIDATED_CONDENSED_STATEME1

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
NET INCOME	$4,280,800	$4,336,900	$8,832,700	$8,394,400
Unrealized net gains/losses on marketable securities:	'	'	'	'
Unrealized holding net gains/losses arising during period	17,200	-4,800	5,200	-1,400
Reclassification adjustment for net gains included in net income	'	'	-3,800	'
OTHER COMPREHENSIVE INCOME (LOSS), BEFORE TAX	17,200	-4,800	1,400	-1,400
Unrealized net gains/losses on marketable securities:	'	'	'	'
Unrealized holding net gains arising during period	-6,500	1,800	-1,900	500
Reclassification adjustment for net gains included in net income	'	'	1,400	'
INCOME TAX (EXPENSE) BENEFIT RELATED TO ITEMS OF OTHER COMPREHENSIVE INCOME	-6,500	1,800	-500	500
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	10,700	-3,000	900	-900
COMPREHENSIVE INCOME	$4,291,500	$4,333,900	$8,833,600	$8,393,500

CONSOLIDATED_CONDENSED_STATEME2

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013
OPERATING ACTIVITIES:	'	'
Net income	$8,832,700	$8,394,400
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation	202,400	212,000
Provision for credit losses	27,800	-37,900
Compensation expense related to stock options	670,000	549,100
Deferred income taxes	-1,902,700	71,000
Gain on sale of marketable securities	-500	'
Deferred initial direct costs	-698,400	-319,500
Amortization of deferred initial direct costs	375,800	284,000
Tax benefits on exercised stock options	-74,700	-261,800
Change in operating assets and liabilities:	'	'
Receivables	117,500	6,700
Income tax receivable / payable	-507,800	806,200
Inventories	18,100	-5,600
Prepaid expenses	193,800	56,400
Accounts payable	-1,017,900	-945,100
Accrued and other liabilities	1,262,100	627,400
Rents received in advance and security deposits	95,200	308,200
Deferred revenue	2,500	-68,900
Net cash provided by operating activities	7,595,900	9,676,600
INVESTING ACTIVITIES:	'	'
Proceeds from sale of marketable securities	511,400	'
Purchase of marketable securities	-612,900	'
Purchase of property and equipment	-337,900	-148,500
Purchase of equipment for lease contracts	-15,155,900	-10,194,500
Principal collections on lease receivables	9,451,600	8,501,100
Net cash used for investing activities	-6,143,700	-1,841,900
FINANCING ACTIVITIES:	'	'
Proceeds from borrowings on line of credit	26,400,000	2,000,000
Payments on line of credit	-3,300,000	-10,800,000
Repurchases of common stock	-7,186,800	-771,500
Proceeds from exercises of stock options	392,000	1,103,500
Dividends paid	-26,330,000	-450,000
Proceeds from discounted lease rentals	'	629,400
Tax benefits on exercised stock options	74,700	261,800
Net cash used for financing activities	-9,950,100	-8,026,800
NET DECREASE IN CASH AND CASH EQUIVALENTS	-8,497,900	-192,100
Cash and cash equivalents, beginning of period	10,642,600	2,233,400
Cash and cash equivalents, end of period	2,144,700	2,041,300
SUPPLEMENTAL DISCLOSURES:	'	'
Cash paid for interest	152,300	173,400
Cash paid for income taxes	$7,899,800	$4,310,700

Managements_Interim_Financial_

Management's Interim Financial Statement Representation:	6 Months Ended
	Jun. 28, 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 six months ended June 28, 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:	6 Months Ended
	Jun. 28, 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	6 Months Ended
	Jun. 28, 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:	6 Months Ended
	Jun. 28, 2014
Investments:	'
Investments	'
	4.Investments:
	Marketable Securities
	The following is a summary of marketable securities classified as available-for-sale securities:
		June 28, 2014						December 28, 2013
		Cost			Fair Value			Cost			Fair Value
	Equity securities	$	845,200		$	839,900		$	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:
		June 28, 2014			December 28, 2013
	Unrealized gains	$	19,300		$	6,800
	Unrealized losses	(24,600		)	(13,400		)
	Net unrealized losses	$	(5,300	)	$	(6,600	)
	The Company’s realized gains and losses recognized on sales of available-for-sale marketable securities are as follows:
		Three Months Ended						Six Months Ended
		June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
	Realized gains	$	4,600		$	—		$	26,800		$	—
	Realized losses	(13,500		)	—			(26,300		)	—
	Net realized gains/(losses)	$	(8,900	)	$	—		$	500		$	—
	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:	6 Months Ended
	Jun. 28, 2014
Investment in Leasing Operations:	'
Investment in Leasing Operations:	'
	5.Investment in Leasing Operations:
	Investment in leasing operations consists of the following:
		June 28, 2014			December 28, 2013
	Direct financing and sales-type leases:
	Minimum lease payments receivable	$	46,395,400		$	35,450,900
	Estimated residual value of equipment	4,875,200			4,348,800
	Unearned lease income net of initial direct costs deferred	(7,314,700		)	(4,963,400		)
	Security deposits	(3,400,000		)	(3,325,600		)
	Equipment installed on leases not yet commenced	3,468,800			6,718,000
	Total investment in direct financing and sales-type leases	44,024,700			38,228,700
	Allowance for credit losses	(939,300		)	(822,700		)
	Net investment in direct financing and sales-type leases	43,085,400			37,406,000
	Operating leases:
	Operating lease assets	489,600			1,353,500
	Less accumulated depreciation and amortization	(348,000		)	(1,218,200		)
	Net investment in operating leases	141,600			135,300
	Total net investment in leasing operations	$	43,227,000		$	37,541,300
	As of June 28, 2014, the $43.2 million total net investment in leases consists of $21.0 million classified as current and $22.2 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 June 28, 2014, leased assets with one customer approximated 13% 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 June 28, 2014:
		Direct Financing and Sales-Type Leases						Operating Leases
		Minimum Lease			Income			Minimum Lease
		Payments Receivable			Amortization			Payments Receivable
	2014	$	14,259,100		$	3,178,600		$	128,000
	2015	20,264,000			3,251,700			76,800
	2016	9,947,300			849,400			—
	2017	1,919,700			34,900			—
	2018	5,300			100			—
	Thereafter	—			—			—
		$	46,395,400		$	7,314,700		$	204,800
	The activity in the allowance for credit losses for leasing operations during the first six months of 2014 and 2013, respectively, is as follows:
		June 28, 2014			June 29, 2013
	Balance at beginning of period	$	822,700		$	775,800
	Provisions charged to expense	27,800			(37,900		)
	Recoveries	88,800			102,600
	Deductions for amounts written-off	—			(17,300		)
	Balance at end of period	$	939,300		$	823,200
	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:
		June 28, 2014						December 28, 2013
		Investment			Allowance for			Investment		Allowance for
		In Leases			Credit Losses			In Leases		Credit Losses
	Collectively evaluated for loss potential	$	44,024,700		$	939,300		$	38,228,700	$	822,700
	Individually evaluated for loss potential	—			—			—		—
	Total	$	44,024,700		$	939,300		$	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-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.
		June 28, 2014
		0-60 Days			61-90 Days			Over 90 Days		Non-Accrual		Total
		Delinquent			Delinquent			Delinquent and
		and Accruing			and Accruing			Accruing
	Middle-Market	$	42,809,700		$	—		$	—	$	—	$	42,809,700
	Small-Ticket	1,215,000			—			—		—		1,215,000
	Total Investment in Leases	$	44,024,700		$	—		$	—	$	—	$	44,024,700
		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

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements:	6 Months Ended
	Jun. 28, 2014
Recent Accounting Pronouncements:	'
Recent Accounting Pronouncements:	'
	6.Recent Accounting Pronouncements:
	In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition that supersedes existing revenue recognition guidance (but does not apply to nor supersede accounting guidance for lease contracts).  The ASU’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  The ASU also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.  The ASU is effective for reporting periods beginning after December 15, 2016, and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application.  The Company is currently in the process of evaluating the impact of the adoption of this ASU on the Company’s consolidated results.

Earnings_Per_Share

Earnings Per Share:	6 Months Ended
	Jun. 28, 2014
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		Six Months Ended
		June 28, 2014	June 29, 2013	June 28, 2014	June 29, 2013
	Denominator for basic EPS – weighted average common shares	5,109,049	5,024,284	5,128,789	5,010,803
	Dilutive shares associated with option plans	134,074	176,308	146,750	190,841
	Denominator for diluted EPS – weighted average common shares and dilutive potential common shares	5,243,123	5,200,592	5,275,539	5,201,644
	Options excluded from EPS calculation – anti-dilutive	31,813	17,474	23,002	18,451

Shareholders_Equity

Shareholders' Equity:	6 Months Ended
	Jun. 28, 2014
Shareholders' Equity:	'
Shareholders' Equity:	'
	8.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 9 — “Line of Credit”).
	On April 30, 2014, the Company’s Board of Directors approved the payment of a $0.06 per share quarterly cash dividend to shareholders of record at the close of business on May 14, 2014, which was paid on June 2, 2014.
	Repurchase of Common Stock
	In the first six months of 2014, the Company repurchased 101,162 shares of its common stock for an aggregate purchase price of $7.2 million or $71.04 per share.  Under the Board of Directors’ authorization, as of June 28, 2014, the Company has the ability to repurchase an additional 231,568 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.  At the April 30, 2014 Annual Shareholders Meeting, the Company’s shareholders approved an increase in the shares of common stock available for granting either nonqualified or incentive stock options to officers and key employees under the Company’s 2010 Stock Option Plan (the “2010 Plan”) from 250,000 to 500,000.
	The Company also sponsors a Stock Option Plan for Nonemployee Directors (the “Nonemployee Directors Plan”), and at the April 30, 2014 Annual Shareholders Meeting, the Company’s shareholders approved an increase in the shares of common stock available for granting options to directors of the Company who are not employees from 300,000 to 350,000.
	Stock option activity under the 2001 Plan, 2010 Plan and Nonemployee Directors Plan (collectively, the “Option Plans”) as of June 28, 2014 was as follows:
		Number of		Weighted			Weighted Average	Intrinsic Value
		Shares		Average			Remaining
				Exercise Price			Contractual Life
							(years)
	Outstanding at December 28, 2013	526,712		$	42.87		7.33	$	26,446,700
	Granted	48,500		66.29
	Exercised	(20,012	)	19.59
	Forfeited	(5,000	)	56.85
	Outstanding at June 28, 2014	550,200		$	45.65		7.15	$	14,842,200
	Exercisable at June 28, 2014	305,748		$	33.17		5.96	$	11,417,400
	The fair value of options granted under the Option Plans during the first six months of 2014 and 2013 were estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results:
		Six Months Ended
		June 28, 2014			June 29, 2013
	Risk free interest rate	1.80		%	1.30		%
	Expected life (years)	6			6
	Expected volatility	34.1		%	32.5		%
	Dividend yield	1.80		%	1.90		%
	Option fair value	$	19.23		$	15.84
	All unexercised options at June 28, 2014 have an exercise price equal to the fair market value on the date of the grant.
	Compensation expense of $670,000 and $549,100 relating to the vested portion of the fair value of stock options granted was expensed to “Selling, General and Administrative Expenses” in the first six months of 2014 and 2013, respectively.  As of June 28, 2014, the Company had $3.5 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 2.6 years.

Line_of_Credit

Line of Credit	6 Months Ended
	Jun. 28, 2014
Line of Credit	'
Line of Credit	'
	9.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 six 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 June 28, 2014, the Company was in compliance with all of its financial covenants.  There were $23.1 million in borrowings outstanding under the Line of Credit bearing interest ranging from 2.40% to 3.25%, leaving $11.9 million available for additional borrowings.

Discounted_Lease_Rentals

Discounted Lease Rentals:	6 Months Ended
	Jun. 28, 2014
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 interest rate of 3.26% at June 28, 2014 on a non-recourse basis.

Segment_Reporting

Segment Reporting:	6 Months Ended
	Jun. 28, 2014
Segment Reporting:	'
Segment Reporting:	'
	11.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				Six Months Ended
		June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
	Revenue:
	Franchising	$	10,881,300	$	9,893,300	$	21,058,300	$	19,633,900
	Leasing	3,157,600		4,130,200		7,533,200		7,538,000
	Total revenue	$	14,038,900	$	14,023,500	$	28,591,500	$	27,171,900
	Reconciliation to operating income:
	Franchising segment contribution	$	5,311,200	$	4,840,800	$	10,012,400	$	9,674,900
	Leasing segment contribution	1,781,400		2,220,400		4,514,700		4,062,200
	Total operating income	$	7,092,600	$	7,061,200	$	14,527,100	$	13,737,100
	Depreciation:
	Franchising	$	76,600	$	82,600	$	159,700	$	166,800
	Leasing	20,500		22,400		42,700		45,200
	Total depreciation	$	97,100	$	105,000	$	202,400	$	212,000
		As of
		June 28, 2014		December 28, 2013
	Identifiable assets:
	Franchising	$	3,265,500	$	7,407,400
	Leasing	44,228,100		42,490,800
	Unallocated	3,221,800		3,137,900
	Total	$	50,715,400	$	53,036,100

Managements_Interim_Financial_1

Management's Interim Financial Statement Representation: (Policies)	6 Months Ended
	Jun. 28, 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)	6 Months Ended
	Jun. 28, 2014
Investments:	'
Summary of marketable securities classified as available-for-sale securities	'
		June 28, 2014						December 28, 2013
		Cost			Fair Value			Cost			Fair Value
	Equity securities	$	845,200		$	839,900		$	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	'
		June 28, 2014			December 28, 2013
	Unrealized gains	$	19,300		$	6,800
	Unrealized losses	(24,600		)	(13,400		)
	Net unrealized losses	$	(5,300	)	$	(6,600	)
Schedule of the Company's realized gains and losses recognized on sales of available-for-sale marketable securities	'
		Three Months Ended						Six Months Ended
		June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
	Realized gains	$	4,600		$	—		$	26,800		$	—
	Realized losses	(13,500		)	—			(26,300		)	—
	Net realized gains/(losses)	$	(8,900	)	$	—		$	500		$	—

Investment_in_Leasing_Operatio1

Investment in Leasing Operations: (Tables)	6 Months Ended
	Jun. 28, 2014
Investment in Leasing Operations:	'
Schedule of investment in leasing operations	'
		June 28, 2014			December 28, 2013
	Direct financing and sales-type leases:
	Minimum lease payments receivable	$	46,395,400		$	35,450,900
	Estimated residual value of equipment	4,875,200			4,348,800
	Unearned lease income net of initial direct costs deferred	(7,314,700		)	(4,963,400		)
	Security deposits	(3,400,000		)	(3,325,600		)
	Equipment installed on leases not yet commenced	3,468,800			6,718,000
	Total investment in direct financing and sales-type leases	44,024,700			38,228,700
	Allowance for credit losses	(939,300		)	(822,700		)
	Net investment in direct financing and sales-type leases	43,085,400			37,406,000
	Operating leases:
	Operating lease assets	489,600			1,353,500
	Less accumulated depreciation and amortization	(348,000		)	(1,218,200		)
	Net investment in operating leases	141,600			135,300
	Total net investment in leasing operations	$	43,227,000		$	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 June 28, 2014:
		Direct Financing and Sales-Type Leases						Operating Leases
		Minimum Lease			Income			Minimum Lease
		Payments Receivable			Amortization			Payments Receivable
	2014	$	14,259,100		$	3,178,600		$	128,000
	2015	20,264,000			3,251,700			76,800
	2016	9,947,300			849,400			—
	2017	1,919,700			34,900			—
	2018	5,300			100			—
	Thereafter	—			—			—
		$	46,395,400		$	7,314,700		$	204,800
Schedule of activity in the allowance for credit losses for leasing operations	'
		June 28, 2014			June 29, 2013
	Balance at beginning of period	$	822,700		$	775,800
	Provisions charged to expense	27,800			(37,900		)
	Recoveries	88,800			102,600
	Deductions for amounts written-off	—			(17,300		)
	Balance at end of period	$	939,300		$	823,200
Schedule of investment in direct financing and sales-type leases (investment in leases) and allowance for credit losses by loss evaluation methodology	'
		June 28, 2014						December 28, 2013
		Investment			Allowance for			Investment		Allowance for
		In Leases			Credit Losses			In Leases		Credit Losses
	Collectively evaluated for loss potential	$	44,024,700		$	939,300		$	38,228,700	$	822,700
	Individually evaluated for loss potential	—			—			—		—
	Total	$	44,024,700		$	939,300		$	38,228,700	$	822,700
Schedule of information regarding accruing and non-accrual leases	'
		June 28, 2014
		0-60 Days			61-90 Days			Over 90 Days		Non-Accrual		Total
		Delinquent			Delinquent			Delinquent and
		and Accruing			and Accruing			Accruing
	Middle-Market	$	42,809,700		$	—		$	—	$	—	$	42,809,700
	Small-Ticket	1,215,000			—			—		—		1,215,000
	Total Investment in Leases	$	44,024,700		$	—		$	—	$	—	$	44,024,700
		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)	6 Months Ended
	Jun. 28, 2014
Earnings Per Share:	'
Schedule of shares outstanding used in the calculation of basic and diluted earnings per share	'
		Three Months Ended		Six Months Ended
		June 28, 2014	June 29, 2013	June 28, 2014	June 29, 2013
	Denominator for basic EPS – weighted average common shares	5,109,049	5,024,284	5,128,789	5,010,803
	Dilutive shares associated with option plans	134,074	176,308	146,750	190,841
	Denominator for diluted EPS – weighted average common shares and dilutive potential common shares	5,243,123	5,200,592	5,275,539	5,201,644
	Options excluded from EPS calculation – anti-dilutive	31,813	17,474	23,002	18,451

Shareholders_Equity_Tables

Shareholders' Equity: (Tables)	6 Months Ended
	Jun. 28, 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
				Exercise Price			Contractual Life
							(years)
	Outstanding at December 28, 2013	526,712		$	42.87		7.33	$	26,446,700
	Granted	48,500		66.29
	Exercised	(20,012	)	19.59
	Forfeited	(5,000	)	56.85
	Outstanding at June 28, 2014	550,200		$	45.65		7.15	$	14,842,200
	Exercisable at June 28, 2014	305,748		$	33.17		5.96	$	11,417,400
Schedule of weighted average assumptions used in estimation of fair value of options granted	'
		Six Months Ended
		June 28, 2014			June 29, 2013
	Risk free interest rate	1.80		%	1.30		%
	Expected life (years)	6			6
	Expected volatility	34.1		%	32.5		%
	Dividend yield	1.80		%	1.90		%
	Option fair value	$	19.23		$	15.84

Segment_Reporting_Tables

Segment Reporting: (Tables)	6 Months Ended
	Jun. 28, 2014
Segment Reporting:	'
Schedule of financial information by segment and reconciliation of segment contribution to operating income	'
		Three Months Ended				Six Months Ended
		June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
	Revenue:
	Franchising	$	10,881,300	$	9,893,300	$	21,058,300	$	19,633,900
	Leasing	3,157,600		4,130,200		7,533,200		7,538,000
	Total revenue	$	14,038,900	$	14,023,500	$	28,591,500	$	27,171,900
	Reconciliation to operating income:
	Franchising segment contribution	$	5,311,200	$	4,840,800	$	10,012,400	$	9,674,900
	Leasing segment contribution	1,781,400		2,220,400		4,514,700		4,062,200
	Total operating income	$	7,092,600	$	7,061,200	$	14,527,100	$	13,737,100
	Depreciation:
	Franchising	$	76,600	$	82,600	$	159,700	$	166,800
	Leasing	20,500		22,400		42,700		45,200
	Total depreciation	$	97,100	$	105,000	$	202,400	$	212,000
		As of
		June 28, 2014		December 28, 2013
	Identifiable assets:
	Franchising	$	3,265,500	$	7,407,400
	Leasing	44,228,100		42,490,800
	Unallocated	3,221,800		3,137,900
	Total	$	50,715,400	$	53,036,100

Managements_Interim_Financial_2

Management's Interim Financial Statement Representation: (Details)	6 Months Ended
	Jun. 28, 2014
	item
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	6 Months Ended
	Jun. 28, 2014	Jun. 28, 2014	Dec. 28, 2013
Summary of marketable securities classified as available-for-sale securities	'	'	'
Equity securities, Cost	$845,200	$845,200	$743,100
Equity securities, Fair Value	839,900	839,900	736,500
Unrealized gains and losses for marketable securities classified as available-for-sale securities in accumulated other comprehensive loss	'	'	'
Unrealized gains	19,300	19,300	6,800
Unrealized losses	-24,600	-24,600	-13,400
Net unrealized losses	-5,300	-5,300	-6,600
Realized gains and losses recognized on sales of available-for-sale marketable securities	'	'	'
Realized gains	4,600	26,800	'
Realized losses	-13,500	-26,300	'
Net realized gains/(losses)	($8,900)	$500	'

Investment_in_Leasing_Operatio2

Investment in Leasing Operations: (Details) (USD $)	Jun. 28, 2014	Dec. 28, 2013
Direct financing and sales-type leases:	'	'
Minimum lease payments receivable	$46,395,400	$35,450,900
Estimated residual value of equipment	4,875,200	4,348,800
Unearned lease income net of initial direct costs deferred	-7,314,700	-4,963,400
Security deposits	-3,400,000	-3,325,600
Equipment installed on leases not yet commenced	3,468,800	6,718,000
Total investment in direct financing and sales-type leases	44,024,700	38,228,700
Allowance for credit losses	-939,300	-822,700
Net investment in direct financing and sales-type leases	43,085,400	37,406,000
Operating leases:	'	'
Operating lease assets	489,600	1,353,500
Less accumulated depreciation and amortization	-348,000	-1,218,200
Net investment in operating leases	141,600	135,300
Total net investment in leasing operations	43,227,000	37,541,300
Net investment in leases - current	21,023,400	17,239,900
Net investment in leases - long-term	$22,203,600	$20,301,400

Investment_in_Leasing_Operatio3

Investment in Leasing Operations: (Details 2) (Assets, Total [Member], Customer Concentration Risk [Member])	6 Months Ended
	Jun. 28, 2014
	customer
Assets, Total [Member] | Customer Concentration Risk [Member]	'
Investment in leasing operations	'
Number of customers	1
Percentage of concentration risk	13.00%

Investment_in_Leasing_Operatio4

Investment in Leasing Operations: (Details 3) (USD $)	Jun. 28, 2014	Dec. 28, 2013
Direct Financing and Sales-Type Leases, Minimum Lease Payments Receivable	'	'
2014	$14,259,100	'
2015	20,264,000	'
2016	9,947,300	'
2017	1,919,700	'
2018	5,300	'
Total	46,395,400	35,450,900
Direct Financing and Sales-Type Leases, Income Amortization	'	'
2014	3,178,600	'
2015	3,251,700	'
2016	849,400	'
2017	34,900	'
2018	100	'
Total	7,314,700	'
Operating Leases, Minimum Lease Payments Receivable	'	'
2014	128,000	'
2015	76,800	'
Total	$204,800	'

Investment_in_Leasing_Operatio5

Investment in Leasing Operations: (Details 4) (Finance Leases Financing Receivable [Member], USD $)	6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013
Finance Leases Financing Receivable [Member]	'	'
Activity in the allowance for credit losses for leasing operations	'	'
Balance at beginning of period	$822,700	$775,800
Provisions charged to expense	27,800	-37,900
Recoveries	88,800	102,600
Deductions for amounts written-off	'	-17,300
Balance at end of period	$939,300	$823,200

Investment_in_Leasing_Operatio6

Investment in Leasing Operations: (Details 5) (USD $)	Jun. 28, 2014	Dec. 28, 2013
Investment In Leases	'	'
Total investment in direct financing and sales-type leases	$44,024,700	$38,228,700
Allowance for Credit Losses	'	'
Total	939,300	822,700
Finance Leases Financing Receivable [Member]	'	'
Investment In Leases	'	'
Collectively evaluated for loss potential	44,024,700	38,228,700
Total investment in direct financing and sales-type leases	44,024,700	38,228,700
Allowance for Credit Losses	'	'
Collectively evaluated for loss potential	939,300	822,700
Total	$939,300	$822,700

Investment_in_Leasing_Operatio7

Investment in Leasing Operations: (Details 6) (USD $)	Jun. 28, 2014	Dec. 28, 2013
Investment in leasing operations	'	'
0-60 Days Delinquent and Accruing	$44,024,700	$37,812,300
Non-Accrual	'	416,400
Total investment in direct financing and sales-type leases	44,024,700	38,228,700
Middle Market Leases [Member]	'	'
Investment in leasing operations	'	'
0-60 Days Delinquent and Accruing	42,809,700	36,716,100
Non-Accrual	'	416,400
Total investment in direct financing and sales-type leases	42,809,700	37,132,500
Small Ticket Leases [Member]	'	'
Investment in leasing operations	'	'
0-60 Days Delinquent and Accruing	1,215,000	1,096,200
Total investment in direct financing and sales-type leases	$1,215,000	$1,096,200

Earnings_Per_Share_Details

Earnings Per Share: (Details)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Earnings Per Share:	'	'	'	'
Denominator for basic EPS - weighted average common shares	5,109,049	5,024,284	5,128,789	5,010,803
Dilutive shares associated with option plans	134,074	176,308	146,750	190,841
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares	5,243,123	5,200,592	5,275,539	5,201,644
Options excluded from EPS calculation - anti-dilutive (in shares)	31,813	17,474	23,002	18,451

Shareholders_Equity_Details

Shareholders' Equity: (Details) (USD $)	0 Months Ended			6 Months Ended
In Millions, except Share data, unless otherwise specified	Apr. 30, 2014	Feb. 04, 2014	Jan. 29, 2014	Jun. 28, 2014
				Common Stock, Repurchase Program [Member]
Dividends	'	'	'	'
Cash dividend approved by Board of Directors (in dollars per share)	$0.06	'	$0.05	'
Special cash dividend approved by Board of Directors (in dollars per share)	'	$5	'	'
Total special dividend in cash	'	$25.80	'	'
Borrowings on line of credit for special dividend	'	13	'	'
Repurchase of Common Stock	'	'	'	'
Number of shares repurchased	'	'	'	101,162
Aggregate purchase price of shares repurchased (in dollars)	'	'	'	$7.20
Aggregate purchase price per share of shares repurchased (in dollars per share)	'	'	'	$71.04
Number of additional shares that can be repurchased	'	'	'	231,568

Shareholders_Equity_Details_2

Shareholders' Equity: (Details 2) (USD $)	6 Months Ended		3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 28, 2014	Dec. 28, 2013	Jun. 28, 2014	Jun. 28, 2014	Apr. 30, 2014	Jun. 28, 2014	Apr. 30, 2014
			Employee and Directors Stock Options [Member]	Employee and Directors Stock Options [Member]	Employee and Directors Stock Options [Member]	Stock Option Plan 2001 [Member]	Stock Option Plan 2010 [Member]	Stock Option Plan 2010 [Member]	Stock Option Plan for Nonemployee Directors [Member]	Stock Option Plan for Nonemployee Directors [Member]
						Employee and Directors Stock Options [Member]	Employee and Directors Stock Options [Member]	Employee and Directors Stock Options [Member]	Employee and Directors Stock Options [Member]	Employee and Directors Stock Options [Member]
Stock option plans	'	'	'	'	'	'	'	'	'	'
Number of shares authorized for issuance	'	'	'	'	'	750,000	500,000	250,000	350,000	300,000
Number of Shares	'	'	'	'	'	'	'	'	'	'
Outstanding at the beginning of the period (in shares)	'	'	'	526,712	'	'	'	'	'	'
Granted (in shares)	'	'	'	48,500	'	'	'	'	'	'
Exercised (in shares)	'	'	'	-20,012	'	'	'	'	'	'
Forfeited (in shares)	'	'	'	-5,000	'	'	'	'	'	'
Outstanding at the end of the period (in shares)	'	'	550,200	550,200	526,712	'	'	'	'	'
Weighted Average Exercise Price	'	'	'	'	'	'	'	'	'	'
Outstanding at the beginning of the period (in dollars per share)	'	'	'	$42.87	'	'	'	'	'	'
Granted (in dollars per share)	'	'	'	$66.29	'	'	'	'	'	'
Exercised (in dollars per share)	'	'	'	$19.59	'	'	'	'	'	'
Forfeited (in dollars per share)	'	'	'	$56.85	'	'	'	'	'	'
Outstanding at the end of the period (in dollars per share)	'	'	$45.65	$45.65	$42.87	'	'	'	'	'
Exercisable at the end of the period (in dollars per share)	'	'	$33.17	$33.17	'	'	'	'	'	'
Exercisable at the end of the period (in shares)	'	'	305,748	305,748	'	'	'	'	'	'
Weighted Average Remaining Contractual Life (years)	'	'	'	'	'	'	'	'	'	'
Outstanding	'	'	'	'7 years 1 month 24 days	'7 years 3 months 29 days	'	'	'	'	'
Exercisable at the end of the period	'	'	'5 years 11 months 16 days	'	'	'	'	'	'	'
Intrinsic Value	'	'	'	'	'	'	'	'	'	'
Outstanding at the beginning of the period	'	'	'	$26,446,700	'	'	'	'	'	'
Outstanding at the end of the period	'	'	14,842,200	14,842,200	26,446,700	'	'	'	'	'
Exercisable at the end of the period	'	'	$11,417,400	$11,417,400	'	'	'	'	'	'
Weighted average assumptions and results used in estimation of fair value of options granted	'	'	'	'	'	'	'	'	'	'
Risk free interest rate (as a percent)	1.80%	1.30%	'	'	'	'	'	'	'	'
Expected life (years)	'6 years	'6 years	'	'	'	'	'	'	'	'
Expected volatility (as a percent)	34.10%	32.50%	'	'	'	'	'	'	'	'
Dividend yield (as a percent)	1.80%	1.90%	'	'	'	'	'	'	'	'
Option fair value (in dollars per share)	$19.23	$15.84	'	'	'	'	'	'	'	'

Shareholders_Equity_Details_3

Shareholders' Equity: (Details 3) (Employee and Directors Stock Options [Member], USD $)	6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013
Employee and Directors Stock Options [Member]	'	'
Additional disclosures	'	'
Compensation expense	$670,000	$549,100
Total unrecognized compensation expense	$3,500,000	'
Weighted average period for recognition of unrecognized compensation expense	'2 years 7 months 6 days	'

Line_of_Credit_Details

Line of Credit (Details) (Line of Credit [Member], USD $)	Jun. 28, 2014
In Millions, unless otherwise specified
Line of Credit	'
Aggregate commitments	$35
Borrowings outstanding	23.1
Amount available for additional borrowings	$11.90
Minimum [Member]	'
Line of Credit	'
Interest rate (as a percent)	2.40%
Maximum [Member]	'
Line of Credit	'
Interest rate (as a percent)	3.25%

Discounted_Lease_Rentals_Detai

Discounted Lease Rentals: (Details)	Jun. 28, 2014
Discounted Lease Rentals:	'
Weighted average interest rate on a non-recourse basis (as a percent)	3.26%

Segment_Reporting_Details

Segment Reporting: (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013	Dec. 28, 2013
	item
Segment Reporting:	'	'	'	'	'
Number of reportable business segments	2	'	'	'	'
Segment Reporting	'	'	'	'	'
Total revenue	$14,038,900	$14,023,500	$28,591,500	$27,171,900	'
Total operating income	7,092,600	7,061,200	14,527,100	13,737,100	'
Total depreciation	97,100	105,000	202,400	212,000	'
Total identifiable assets	50,715,400	'	50,715,400	'	53,036,100
Operating Segments [Member] | Franchising [Member]	'	'	'	'	'
Segment Reporting	'	'	'	'	'
Total revenue	10,881,300	9,893,300	21,058,300	19,633,900	'
Total operating income	5,311,200	4,840,800	10,012,400	9,674,900	'
Total depreciation	76,600	82,600	159,700	166,800	'
Total identifiable assets	3,265,500	'	3,265,500	'	7,407,400
Operating Segments [Member] | Leasing [Member]	'	'	'	'	'
Segment Reporting	'	'	'	'	'
Total revenue	3,157,600	4,130,200	7,533,200	7,538,000	'
Total operating income	1,781,400	2,220,400	4,514,700	4,062,200	'
Total depreciation	20,500	22,400	42,700	45,200	'
Total identifiable assets	44,228,100	'	44,228,100	'	42,490,800
Corporate, Non-Segment [Member]	'	'	'	'	'
Segment Reporting	'	'	'	'	'
Total identifiable assets	$3,221,800	'	$3,221,800	'	$3,137,900