Winmark Corporation (WINA): History, Ownership, Mission, How It Works & Makes Money

How does a company with an asset-light, franchise-only model in the resale space achieve a market capitalization of $1.8 billion and net income of $31.69 million in the first nine months of 2025? Winmark Corporation (WINA) is not a typical retailer; it's a high-margin franchisor-the engine behind brands like Plato's Closet and Once Upon A Child-that leverages the growing circular economy trend.

With 1,377 franchises in operation as of late September 2025, Winmark's model generates profit margins that look more like a software company's, hitting roughly 55% through the third quarter of 2025, which is defintely a number worth your attention.

If you are looking for a resilient business that champions sustainability and small business formation, you need to understand the mechanics that drove its stock to an all-time high of $520.45 this past October.

Winmark Corporation (WINA) History

You're looking for the bedrock of Winmark Corporation, the story of how a single sporting goods resale shop became a multi-brand franchising powerhouse. The direct takeaway is this: Winmark's success is a classic turnaround story, pivoting from a near-bankrupt, mixed-ownership model in the early 2000s to a pure-play, high-margin franchisor today, a defintely smart move.

The company's evolution is marked by a relentless focus on the high-margin, asset-light franchising model, especially in the growing resale (or circular economy) space. This strategy is why they are so profitable now, with Q3 2025 net income hitting $11.1 million.

Given Company's Founding Timeline

Year established

The company was established in 1988, initially incorporated as Play It Again Sports Franchise Corporation.

Original location

The headquarters and original base of operations were in Minneapolis, Minnesota.

Founding team members

The company was founded by Ron Olson and Jeffrey Dahlberg. They began by purchasing the franchise rights for Play It Again Sports from its original founder, Martha Morris.

Initial capital/funding

The precise initial capital for the 1988 founding is not publicly disclosed. To give you a concrete idea of the capital required to enter this system, today's prospective franchisee for a Play It Again Sports location needs an estimated total initial investment ranging from $343,000 to $457,000, which includes the initial franchise fee of $25,000.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history is defined by two major, decisive shifts that clarified its business model and drove profitability. The first was a necessary rescue, and the second was a strategic focus on core competency.

The most critical moment was the turnaround led by John L. Morgan, who took over as CEO in 2000. Honestly, the company was near bankruptcy. Morgan's strategy was simple but brutal: cut the dead weight and focus on the core value proposition-being a pure franchisor. This meant selling off or closing financially failing concepts like Computer Renaissance and It's About Games. The latter had lost $3.4 million in 1998 alone, a huge drag on the business.

• Pure-Play Franchise Model: Morgan's mandate was to move from owning stores to having 100% franchisee-owned stores, which is the asset-light model they maintain today. This reduced capital expenditure and boosted margins, which is why the company's net profit margin was a healthy 45% in Q1 2025.
• Leasing Portfolio Run-Off: A more recent, but equally important, decision was made in May 2021 to run-off the equipment leasing portfolio (Winmark Capital). This business had been a source of revenue but also complexity and capital commitment. The move streamlined the operation, focusing all resources on the high-margin franchising business. While this decision contributed to a drop in total annual revenue from $83.2 million in 2023 to $81.3 million in 2024, it improved the quality and predictability of earnings. [cite: 4, 10 in first search]

This commitment to a simplified, high-margin, royalty-driven model is why the company continues to generate strong cash flow from operations, totaling $15.08 million in Q1 2025. If you want to dig deeper into the current investor sentiment and ownership structure, you should check out Exploring Winmark Corporation (WINA) Investor Profile: Who's Buying and Why?

Winmark Corporation (WINA) Ownership Structure

Winmark Corporation's ownership structure is a blend of institutional heft and significant insider control, which is common in successful, long-standing franchisors.

This mix means you have strong oversight from large funds, but also a management team whose personal wealth is defintely tied up in the stock, aligning their interests directly with yours as a shareholder.

Given Company's Current Status

Winmark Corporation is a public company, trading on the Nasdaq Global Market (NasdaqGM) under the ticker symbol WINA.

As a publicly traded entity, it is subject to the rigorous reporting and transparency requirements of the U.S. Securities and Exchange Commission (SEC), which is why we can track its ownership so closely. For example, the company announced a special dividend of $10.00 per share, totaling approximately $35.6 million, to be paid in December 2025, a clear action showing its commitment to returning capital to shareholders.

If you want to dive deeper into the strategic thinking behind the company's direction, you should check out the Mission Statement, Vision, & Core Values of Winmark Corporation (WINA).

Given Company's Ownership Breakdown

The company's ownership is split across three main groups, with institutional investors holding the largest slice of the pie.

As of late 2025, institutions-like BlackRock, Inc. and The Vanguard Group, Inc.-collectively own more than half of the outstanding shares, which is a strong vote of confidence from professional money managers.

Here's the quick math: With approximately 3.56 million shares outstanding, a 16.88% insider stake means management and directors control a significant number of votes, ensuring they have a powerful voice in strategic decisions.

Given Company's Leadership

The company's day-to-day operations and long-term strategy are steered by a seasoned executive team, many of whom have been with the company for years.

The leadership structure is clear, with the CEO also serving as the Chairman of the Board, which gives him a unified command over both management and governance.

• Brett D. Heffes: Chair of the Board and Chief Executive Officer. He has been a key leader for over a decade, providing consistent direction.
• Anthony D. Ishaug: Executive Vice President, Chief Financial Officer (CFO), and Treasurer. He manages the financial health, reporting Q3 2025 revenue of $22.63 million.
• Renae M. Gaudette: Executive Vice President and Chief Operating Officer (COO). She oversees the core franchise operations.
• Lisa S. Hake: Chief Marketing Officer (CMO). She joined in October 2025, a newly created role to focus on brand growth and franchisee support.

The Board of Directors, which includes independent directors like Tom C. Tomlinson (Lead Director), provides the necessary oversight to the executive team.

Winmark Corporation (WINA) Mission and Values

Winmark Corporation's purpose extends beyond quarterly earnings, centering on a dual commitment to empowering small business owners and championing the circular economy through resale. Their mission, simply put, is to make quality, affordable, and sustainable shopping accessible to everyone.

Given Company's Core Purpose

When you look at Winmark, you're seeing a business model built on a clear, repeatable, and socially conscious formula. It's a franchise system that thrives by turning used goods into a profitable, low-overhead opportunity for local entrepreneurs. This model is the core of their cultural DNA, driving every decision from franchise support to brand development.

Official mission statement

The formal mission is a powerful, trademarked statement that cuts straight to the economic and consumer value proposition. Honestly, it's a defintely strong, actionable mission for a retail franchisor in the 2025 market.

• Official Mission: Provide Resale for Everyone®.
• Underlying Purpose: Champion and guide entrepreneurs in operating award-winning resale franchises.
• Core Values in Action: The success of this mission is evident in the numbers; for the nine months ended September 27, 2025, the company reported a net income of $31,694,200, showing the profitability of their franchise-first approach.

Vision statement

The company's vision is focused on solidifying its position as the undisputed leader in the resale space, which is a smart play given the massive consumer shift toward sustainability. They see a future where their network is the primary engine for value in the second-hand market, benefiting customers, franchisees, and shareholders simultaneously. Their commitment to sustainability isn't just talk; in August 2025, Winmark announced its brands have collectively recycled more than 2 billion items since 2010, which is a staggering environmental impact.

• Market Leadership: Be the leading franchisor in the resale industry.
• Sustainability: Be recognized for commitment to sustainability and the circular economy.
• Growth: Ensure the franchise network continues to grow and thrive.

Here's the quick math: With 1,377 franchises in operation as of September 27, 2025, that network is the engine driving their long-term vision. You can explore more about the investor perspective on this growth at Exploring Winmark Corporation (WINA) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

Winmark uses two key taglines that capture its identity and core offering. The first is a straightforward description of their business, and the second is the mission itself, which is a brilliant piece of marketing.

• Primary Tagline: Winmark - the Resale Company®.
• Mission-as-Tagline: Resale for Everyone®.

This dual identity-being the recognized 'Resale Company' while actively fulfilling the promise of 'Resale for Everyone'-maps directly to their financial strength. The cash and cash equivalents rising from $12.2 million to $39.7 million for the nine months ended September 27, 2025, shows that this focused brand identity is creating significant financial flexibility.

Winmark Corporation (WINA) How It Works

Winmark Corporation operates as a pure-play franchisor, generating revenue by licensing its five distinct resale retail brands to entrepreneurs who then run their own neighborhood stores. This asset-light model focuses on collecting recurring royalties from over 1,371 locations in operation as of the second quarter of 2025, rather than managing inventory or day-to-day retail operations itself.

Winmark Corporation's Product/Service Portfolio

Winmark Corporation's Operational Framework

The company's operational framework is built on a high-margin, low-corporate-overhead franchising system that minimizes capital expenditures, since franchisees handle most of the store-level investment and daily management. Winmark's primary function is brand stewardship and providing a proven, turnkey business system to its franchise partners.

• Franchise Development: Identifies and vets qualified entrepreneurs who meet specific net worth and experience criteria, with over 2,800 available territories still open for expansion.
• Comprehensive Support: Offers mandatory training programs, site selection assistance, store design consultation, and proprietary point-of-sale (POS) technology to streamline the buy-sell-trade process.
• Revenue Generation: The core income stream is recurring royalty payments, which rose to $18.7 million in the second quarter of 2025 alone, reflecting the health of the retail network.
• Technology and Merchandising: Sells technology services and a limited amount of new merchandise to franchisees, though merchandise sales have seen a slight dip, indicating a focus on core royalty revenue.

This model is defintely efficient, translating a small corporate footprint into substantial profit. For a deeper dive into the numbers, you should check out Breaking Down Winmark Corporation (WINA) Financial Health: Key Insights for Investors.

Winmark Corporation's Strategic Advantages

Winmark's success stems from its ability to capitalize on two major consumer trends: value shopping and sustainability, all while maintaining an asset-light structure that drives exceptional profitability.

• High-Margin Business Model: The franchising structure allows for strong operating margins, which helped drive net income to $31.7 million for the first nine months ended September 27, 2025.
• Strong Brand Equity: A portfolio of five well-recognized resale brands-like Plato's Closet-gives franchisees instant market recognition and a proven customer base.
• Recession Resilience: The value-oriented resale concept appeals to cost-conscious consumers, making the business relatively resilient during economic downturns when shoppers are financially stretched.
• Recurring Revenue: High franchise renewal rates ensure a consistent, predictable stream of royalty income, which is the company's primary revenue driver.

The company's financial prudence is clear; cash and cash equivalents increased significantly to $39.7 million as of September 27, 2025, enabling shareholder returns like the recent declaration of a $10.00 per share special cash dividend.

Winmark Corporation (WINA) How It Makes Money

Winmark Corporation makes money primarily by operating an asset-light franchise model, collecting recurring royalty fees-a percentage of gross sales-from its network of resale stores, which include brands like Plato's Closet and Once Upon A Child. This strategy generates extremely high margins because the franchisees bear the substantial capital and operating costs of the physical stores.

Winmark Corporation's Revenue Breakdown

Winmark's financial engine is overwhelmingly driven by recurring royalties from its over 1,377 franchised locations as of September 27, 2025. The Trailing Twelve Months (TTM) revenue ending September 27, 2025, totaled $84.52 million. Here is the breakdown of the major revenue streams:

Royalties Revenue, which hit $74.99 million TTM, is the core of the business, having grown 7.2% year-over-year in Q3 2025 due to a steady increase in the number of operating franchises and healthy unit-level sales. Merchandise Sales Revenue, totaling $3.30 million TTM, comes mainly from selling proprietary point-of-sale (POS) systems and technology to franchisees, which has been a decreasing revenue source as franchisees complete their initial technology purchases.

The remaining revenue is split between Leasing Income, which was $2.54 million TTM but is expected to end after the fourth quarter of 2025 as the company runs off its legacy leasing portfolio, and Franchise Fees, which were $1.45 million TTM and represent the initial fee entrepreneurs pay to open a new store. Honestly, the leasing income is a non-factor going forward.

Business Economics

The genius of Winmark Corporation's model lies in its low-capital intensity and high operating leverage, which is why the margins are so impressive. Since the franchisees fund the store build-out, inventory, and operations, Winmark avoids the capital expenditure (CapEx) burden typical of a retail chain.

• Royalty Rate: Franchisees generally pay a royalty rate of around 4% to 5% of their gross sales, providing Winmark with a highly predictable, recurring revenue stream.
• Initial Franchise Fee: The initial fee to secure a franchise is typically $25,000, which is recognized as revenue upon the store's opening.
• Counter-Cyclical Appeal: The resale model-selling gently used items like clothing and sporting goods-is often counter-cyclical, meaning it performs defintely well when budget-conscious consumers are trying to lower their expenses, a trend that is particularly strong in the current economic climate.
• Low CapEx: The business requires minimal corporate reinvestment; for perspective, CapEx was only $195,000 in 2024 compared to $42.16 million in cash from operations.

Here's the quick math: Winmark collects a slice of every sale across its entire network without having to stock the shelves or pay the rent. That keeps the cost structure tiny.

Winmark Corporation's Financial Performance

The asset-light model translates directly into stellar financial performance, giving the company margins that rival software-as-a-service (SaaS) companies, not traditional retail franchisors. For the Trailing Twelve Months (TTM) ending September 27, 2025, the key metrics are clear indicators of exceptional financial health:

• Gross Profit Margin: The TTM Gross Profit Margin stood at a staggering 96.29%.
• Operating Margin: The TTM Operating Margin was 64.30%, showing remarkable efficiency in managing its small corporate overhead.
• Net Income: TTM Net Income reached $41.28 million.
• Net Profit Margin: The resulting TTM Net Profit Margin was an enviable 48.84%.
• Cash Generation: The company's robust cash flow allowed the Board to approve a special dividend of $10.00 per share in October 2025, totaling approximately $35.6 million, payable in December 2025.

What this estimate hides is the slight margin compression seen in Q3 2025, where the net income margin compressed to approximately 49.2% from the prior year, as selling, general, and administrative (SG&A) expenses rose by 19%, partly due to non-recurring software license costs. Still, the core profitability remains incredibly strong. You can dive deeper into the balance sheet and cash flow dynamics here: Breaking Down Winmark Corporation (WINA) Financial Health: Key Insights for Investors

The next step is for you to look at the franchise unit economics, specifically the average unit volume (AUV) growth, to see if the royalty revenue growth is sustainable.

Winmark Corporation (WINA) Market Position & Future Outlook

Winmark Corporation holds a uniquely profitable, asset-light position in the booming resale industry, primarily as a franchisor, not a retailer. While its direct revenue is modest at approximately $57.35 million for the first three quarters of 2025, its true strength lies in its expansive, high-margin franchise network of 1,377 stores, which benefits directly from the consumer shift toward value and sustainability. The company's strategic move to fully exit its leasing segment and focus purely on franchising positions it for consistent royalty-driven cash flow, which is why it declared a $10.00 per share special cash dividend in late 2025.

Competitive Landscape

Winmark competes across a fragmented secondhand apparel and goods market, which is valued at an estimated $56 billion in the U.S. in 2025. Its primary competition comes from both large-scale online resale platforms and deeply entrenched non-profit thrift organizations, though Winmark dominates the franchised, buy-sell-trade brick-and-mortar niche.

Opportunities & Challenges

You need to be a trend-aware realist, so let's map the near-term opportunities against the inherent risks. Winmark's model is inherently counter-cyclical, meaning it performs well when consumers are financially stretched and actively seeking bargains.

Industry Position

Winmark is the definitive leader in the franchised resale space, a crucial sub-segment of the overall secondhand market. Its strength is not in total sales volume, but in its exceptional profitability; the company posted a Q2 2025 net profit margin of over 51.96%, which is more akin to a software company than a traditional retailer.

The company's core value proposition-a localized, immediate cash payment model for used goods-provides a distinct advantage over online consignment, which is often slow. This model is defintely a high barrier to entry for new brick-and-mortar competitors.

• Franchise Network Stability: A 99% franchise renewal rate for the first three quarters of 2025 confirms strong franchisee satisfaction and stable recurring revenue.
• Asset-Light Focus: The final run-off of the legacy leasing portfolio sharpens the focus entirely on the high-margin royalty segment.
• Counter-Cyclical Appeal: Continued economic uncertainty and persistent inflation drive more shoppers to value-oriented resale concepts like Plato's Closet, a trend that is not slowing down.

To be fair, the market is quickly moving digital. Winmark needs to ensure its technology offerings to franchisees keep up with the seamless user experience of its online competitors. For a deeper dive into the numbers, check out Breaking Down Winmark Corporation (WINA) Financial Health: Key Insights for Investors.