Winmark Corporation
winmarkcorporation.comWhat Do They Do?
Franchises resale retail brands to entrepreneurs, whose stores buy and sell used apparel, children’s goods, and sporting and music goods to consumers.
10-K for FY2025, filed Feb 25, 2026Winmark – the Resale Company® (Winmark Corporation, Winmark or the Company), is a nationally recognized franchisor focused on…View ↗
We began franchising the Plato’s Closet brand in 1999. Plato’s Closet franchisees buy and sell gently used clothing and accessories geared…View ↗
We began franchising the Once Upon A Child brand in 1993. Once Upon A Child franchisees buy and sell gently used and, to a lesser extent…View ↗
We began franchising the Play It Again Sports brand in 1988. Play It Again Sports franchisees buy, sell and trade gently used and new…View ↗
We began franchising the Music Go Round brand in 1994. Music Go Round franchisees buy, sell and trade gently used and, to a lesser extent…View ↗
How Do They Make Money?
Franchisees pay annual marketing fees at different times during the year, which Winmark counts over the franchise term. It collects royalties as a percentage of store sales when sales occur, initial franchise fees when agreements are signed, and software license fees when the point-of-sale system is provided; both fees are counted over the franchise term.
10-K for FY2025, filed Feb 25, 2026Marketing fee revenue is included in the Revenue: Other line of the Consolidated Statements of Operations. The Company bills and collects…View ↗
The Company collects royalties from each retail franchise based upon a percentage of retail sales. The Company recognizes royalties at the…View ↗
The Company collects initial franchise fees when franchise agreements are signed. The Company recognizes franchise fee revenue over the…View ↗
Software license fee revenue is included in the Revenue: Other line of the Consolidated Statements of Operations. The Company bills and…View ↗
$86.1M
-
10-K for FY2025, filed Feb 25, 2026
$86.1M ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Franchise fees
Recurring
10-K for FY2025, filed Feb 25, 2026 |
40%
FY2022: 47%
|
Franchise fees, FY2025
$1.5M Sources
|
Recurring |
|
Marketing Fees
Recurring
10-K for FY2025, filed Feb 25, 2026 |
50%
FY2022: 44%
|
Marketing Fees, FY2025
$1.9M Sources
|
Recurring |
|
Software License Fees
Licensed
10-K for FY2025, filed Feb 25, 2026 |
10%
FY2022: 8.9%
|
Software License Fees, FY2025
$400K Sources
|
Licensed |
Who Are Their Customers?
Winmark’s direct customers are entrepreneurs who sign franchise agreements; their stores buy and sell used goods to consumers.
10-K for FY2025, filed Feb 25, 2026We use franchising as a business method of distributing goods and services through our retail brands to consumers. We, as franchisor, own a…View ↗
We seek to attract prospective franchisees with experience in management and operations and an interest in being the owner and operator of…View ↗
We began franchising the Plato’s Closet brand in 1999. Plato’s Closet franchisees buy and sell gently used clothing and accessories geared…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 48 cents of every revenue dollar as net income in FY2025 and turned 52 cents into free cash flow.
10-K for FY2025, filed Feb 25, 2026
$54.6MView ↗
10-K for FY2025, filed Feb 25, 2026
$41.7MView ↗
10-K for FY2025, filed Feb 25, 2026
$44.7MView ↗
How Are They Changing?
-
Mar 16, 2026
Adds a monthly software fee and a Plato’s Closet advertising fund
Stores will pay $295 monthly for software, and Plato’s Closet franchisees will contribute 2% of sales to the fund.
Sources
8-K, filed Mar 16, 2026
The Company has announced that, beginning on September 1, 2026, it will charge a monthly fee of $295 plus applicable taxes (“Software Fee”)…View ↗
Growing. Revenue grew 10% in 4 years, from $78.2M in FY2021 to $86.1M in FY2025, about 2% a year.
Equipment leasing ended
The older report described an orderly run-off of the equipment-leasing portfolio; the latest says it is complete, with no leasing customers or leased assets.
10-K for FY2022, filed Mar 10, 2023 10-K for FY2025, filed Feb 25, 2026During 2021, we made the decision to no longer solicit new leasing customers and pursue an orderly run-off of our equipment leasing…View ↗
Historically, leasing operations consisted of a middle-market leasing business through Winmark Capital Corporation, which is a wholly-owned…View ↗
Who Do They Compete With?
Competes with eBay, craigslist, Facebook Marketplace, Poshmark, thredUP, Amazon, American Eagle, Gap, Abercrombie & Fitch, Old Navy, Hollister, Target, Walmart, Carter’s, Dick’s Sporting Goods, Academy Sports & Outdoors, and Guitar Center
10-K for FY2025, filed Feb 25, 2026Retailing, including the sale of apparel, sporting goods and musical instruments, is highly competitive. Many retailers have substantially…View ↗
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