1. Organization and Business:

Winmark Corporation and subsidiaries (the Company) offers licenses to operate franchises using the service marks Plato’s Closet®, Play It Again Sports®, Once Upon A Child®, Style Encore® and Music Go Round®. In addition, the Company sells point-of-sale system hardware to its franchisees and certain merchandise to its Play It Again Sports franchisees. The Company uses its Winmark Franchise Partners™ mark in connection with its strategic consulting and corporate development activities. The Company also operates both middle market and small-ticket equipment leasing businesses under the Winmark Capital® and Wirth Business Credit® marks. The Company has a 52/53-week fiscal year that ends on the last Saturday in December. Fiscal years 2017 and 2015 were 52-week fiscal years, while 2016 was a 53-week fiscal year.

Following is a summary of our franchising activity for the fiscal year ended December 30, 2017:


	12/31/2016	OPENED	CLOSED	12/30/2017
Plato’s Closet
Franchises - US and Canada	468	14	(6)	476
Once Upon A Child
Franchises - US and Canada	348	18	(6)	360
Play It Again Sports
Franchises - US and Canada	283	6	(8)	281
Style Encore
Franchises - US and Canada	52	11	(2)	61
Music Go Round
Franchises - US	35	—	(2)	33
Total Franchised Stores	1,186	49	(24)	1,211