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Intangible Assets:
 12 Months Ended
Dec. 28, 2024
Intangible Assets:  
Intangible Assets:

5.     Intangible Assets:

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In June 2022, Winmark terminated an agreement that contained the rights for eleven Play It Again Sports stores to operate separately from Winmark’s franchise system. In terminating the agreement, which included $3.54 million of consideration paid by Winmark, Winmark reacquired the franchise rights to these eleven stores. Upon termination of the agreement, individual franchise agreements were signed for these eleven stores, each with an initial term of ten years.

Intangible assets consist of these reacquired franchise rights. The Company amortizes the fair value of the reacquired franchise rights over the contract term of the franchise. The Company recognized $354,000 of amortization expense for each of the years ended December 28, 2024 and December 30, 2023, respectively.

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Intangible assets consist of the following:

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​

​

​

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December 28, 2024

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December 30, 2023

Reacquired franchise rights

$

3,540,000

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$

3,540,000

Accumulated amortization

​

(899,700)

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(545,700)

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$

2,640,300

​

$

2,994,300

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The following table illustrates future amortization to be expensed for the next five fiscal years and fiscal years thereafter related to reacquired franchise rights as of December 28, 2024.

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Amortization expected to be expensed in

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Amount

2025

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$

354,000

2026

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354,000

2027

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354,000

2028

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354,000

2029

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354,000

Thereafter

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870,300

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​

$

2,640,300

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