• Like McDonald's, but for local second-hand retail stores where people buy, sell, and trade used goods.
• A physical, franchised version of online resale platforms like ThredUp or Poshmark.

• Franchising Services: Winmark develops and supports five distinct retail franchise brands focused on the resale of quality used merchandise.
  • Plato's Closet Franchises: Provides a retail franchise model for buying and selling gently used clothing and accessories for teens and young adults.
  • Once Upon A Child Franchises: Offers a retail franchise model for buying and selling gently used children's apparel, toys, equipment, and furniture.
  • Play It Again Sports Franchises: Delivers a retail franchise model for buying and selling new and used sporting goods and fitness equipment.
  • Music Go Round Franchises: Supplies a retail franchise model for buying and selling used musical instruments, equipment, and accessories.
  • Style Encore Franchises: Presents a retail franchise model for buying and selling gently used women's apparel, shoes, and accessories.
• Equipment Leasing: Winmark Capital provides lease financing solutions for businesses to acquire various types of equipment.

Winmark (symbol: WINA) operates as a franchisor of retail stores. Its primary customers are the independent businesses that purchase and operate franchises under Winmark's various brands, which include Play It Again Sports, Plato's Closet, Once Upon A Child, Style Encore, and Music Go Round.

Therefore, Winmark sells primarily to other companies (its franchisees). However, due to the highly fragmented nature of its franchisee network, Winmark does not have any single "major customer" (i.e., one representing 10% or more of its total revenues) that is publicly disclosed or identifiable. Its customer base consists of thousands of individually owned and operated small businesses. As such, there are no specific major customer companies to list by name or public company symbol.

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Brett D. Heffes, Chair of the Board and Chief Executive Officer

Mr. Heffes was appointed Chief Executive Officer in February 2016 and has served as Chair of the Board since March 2020. Prior to his current role, he held several positions at Winmark, including President from 2011 to 2016, and President of Finance and Administration, Chief Financial Officer, and Treasurer from 2002 to 2011. Before joining Winmark, Mr. Heffes was Chief Financial Officer of Gearworks, Inc. and Veeco St. Paul, Inc. He also served as Chief Executive Officer at Wirth Business Credit, Inc. Veeco Compound Semiconductor, where he was CFO, was acquired by Veeco Instruments, Inc. in 2001. He has over twenty-five years of leadership experience in public companies and holds a Bachelor of Science in Finance from Boston College.

Anthony D. Ishaug, Executive Vice President, Chief Financial Officer and Treasurer

Mr. Ishaug has served as Winmark's Chief Financial Officer since September 2008 and Treasurer since November 2009. Before his tenure at Winmark, he held the roles of CFO/COO at Department 56 Inc. and Treasurer/Controller at Lenox.

Renae M. Gaudette, Executive Vice President and Chief Operating Officer

Ms. Gaudette serves as the Executive Vice President and Chief Operating Officer for Winmark Corporation.

Lisa S. Hake, Chief Marketing Officer

Ms. Hake joined Winmark as Chief Marketing Officer, effective October 1, 2025. She brings over 25 years of experience in brand management, marketing innovation, and consumer engagement. Prior to Winmark, she was the Vice President of Marketing & Communications at Great Clips and held senior marketing positions at Best Buy (including Senior Marketing Director for Geek Squad), 3M, and The Pillsbury Company.

Key Risks to Winmark (WINA)

• Dependence on Franchisee Renewal: Winmark's business model heavily relies on the renewal of its franchise agreements. If franchisees opt not to renew, the company would potentially need to open and operate stores directly, which would fundamentally alter its capital-light operational structure and increase capital expenditure. While Winmark has historically maintained high renewal rates, reportedly 99% over the past decade and 100% in 2022, this remains a critical factor for sustained success and adherence to its current business model.
• Competitive Pressure: The retail industry, in which Winmark's franchised brands operate, is intensely competitive. Winmark must continuously innovate and provide effective support to its franchisees to maintain a competitive edge. The rise of online second-hand marketplaces, such as The RealReal, ThredUp, Facebook Marketplace, and eBay, presents a significant challenge by offering consumers a broader selection of merchandise.
• Market Concentration and Economic Sensitivity: Winmark's focus on franchising value-oriented retail stores exposes it to specific market risks. Economic downturns or shifts in consumer preferences could adversely affect the sales performance of its franchisees, thereby impacting Winmark's royalty revenues. The company's performance is sensitive to economic cycles and consumer spending patterns, although its resale model has demonstrated resilience in past economic crises, as consumers may be more inclined to sell items and seek bargains during challenging times.

The clear emerging threat to Winmark (WINA) is the continued rapid expansion and increasing consumer adoption of online resale marketplaces.

Winmark's business model relies on a network of franchised brick-and-mortar stores where customers physically bring in used items to sell and visit to purchase used merchandise. Online platforms such as ThredUp, Poshmark, eBay, Depop, Mercari, Vinted, and Facebook Marketplace directly compete with Winmark's franchisees by offering sellers the convenience of listing items from home, reaching a vast online audience, and eliminating the need to visit a physical store. For buyers, these platforms provide a wider selection of items, often competitive pricing, and the convenience of shopping from anywhere.

This shift mirrors historical disruptions where convenience and broader access offered by new digital models challenged traditional physical retail. Just as Netflix offered a more convenient alternative to Blockbuster's physical rentals, and Uber offered an app-based alternative to hailing traditional taxis, online resale platforms offer a more convenient and expansive alternative to Winmark's store-based consignment and resale model for both the sourcing and selling of used goods.

Winmark Corporation (WINA) operates primarily through its franchise-based resale retail stores and an equipment leasing business. The addressable markets for their main products and services are as follows:

Resale Franchises (Plato's Closet, Once Upon A Child, Play It Again Sports, Style Encore, Music Go Round)

• Overall Secondhand Market (U.S.): The used goods stores industry in the United States is projected to be $30.8 billion in 2025. The broader U.S. secondhand market is estimated at $56 billion as of 2025 and is projected to reach $74 billion by 2029.
• Secondhand Apparel Market (U.S. and Canada): The U.S. secondhand apparel market is expected to reach $73 billion by 2028. The USA & Canada secondhand apparel market is valued at $24.8 billion in 2025 and is expected to grow to $83.3 billion by 2035.
• Used Children's Items Market (U.S.): The secondhand kids' and baby item market in the U.S. was valued at $7 billion in 2021 and is forecast to grow to $12.8 billion by 2030. Within this, children's clothing accounted for $1.7 billion and toys for $1.3 billion in 2021. The global secondhand kids' clothing market is projected to grow from USD 8.9 billion in 2024 to USD 21.3 billion by 2033.
• Sporting Goods Market (North America and U.S.): The North American sporting goods market is projected to reach $176.9 billion in 2025 and expand to $410.3 billion by 2035. The U.S. athletic & sporting goods market size was $35.5 billion in 2024, and it is expected to reach $60.1 billion by 2032. The market size of Sporting Goods Stores in the U.S. is $107.6 billion in 2025.
• Used Musical Instrument Market (U.S.): The used guitar market in the U.S. was valued at $1.4 billion in 2020 and is expected to grow to $2.1 billion by 2025. The overall U.S. musical instrument market generated revenue of $3,446.7 million in 2023 and is expected to reach $5,446.0 million by 2030.

Leasing Services (Winmark Capital Corporation)

• Equipment Finance Industry (U.S.): The overall U.S. equipment finance industry, which includes leasing, loans, and lines of credit for small and medium-sized businesses, expanded to an estimated $1.34 trillion in 2023. Leasing was the most important payment method used by businesses to acquire equipment in 2023, accounting for 26% of total acquisitions. North America is identified as the largest regional market for equipment finance services.

Winmark (NASDAQ: WINA) is expected to drive future revenue growth over the next 2-3 years through several key factors, primarily centered around its asset-light franchising model and its position in the growing resale market.

1. Franchise Network Expansion

   A significant driver of future revenue growth for Winmark is the continued expansion of its franchise network. The company has a pipeline of new franchises that have been awarded but are not yet operational. For example, as of September 27, 2025, an additional 77 franchises had been awarded but were not yet open. Once these new locations commence operations, they will contribute to Winmark's royalty revenue stream, a core component of its business model. Analysts have also factored new store additions into their sales growth projections.

2. Growth in Royalty Revenue from Existing Franchises

   Beyond new store openings, Winmark anticipates growth from its existing base of franchises. Royalty revenue, which is a key component of the company's earnings, has shown consistent increases. For instance, royalty revenue increased to $20.91 million in the third quarter of 2025, up from $19.51 million in the prior-year quarter. This growth indicates sustained performance and potentially increased sales volume within its established franchise locations, contributing to overall revenue expansion.

3. Increasing Consumer Demand for Resale and Sustainable Products

   Winmark is strategically positioned to benefit from the growing consumer trend towards value, recycling, and sustainability. As "the Resale Company®," its business model directly addresses the rising demand for high-quality, secondhand goods across its various brands, such as Plato's Closet®, Once Upon A Child®, and Play It Again Sports®. This cultural shift is expected to attract more customers to its franchised stores, thereby increasing sales at the unit level and, consequently, Winmark's royalty income.

Share Repurchases

• Winmark has an ongoing share repurchase program with no specified end date.
• In July 2021, the Board of Directors approved an increase of 400,000 shares to its existing repurchase authorization, representing approximately 11% of the shares outstanding at that time.
• The company conducted significant share repurchases in 2022, totaling $49.12 million, but reported no repurchases in 2024.

Capital Expenditures

• Winmark operates an asset-light franchise model, which results in minimal capital expenditures as franchisees manage most of these costs.
• Capital expenditures were reported as $195,000 in 2024.
• In the most recent 12-month period (prior to October 2025), capital expenditures were -$172,700.