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

Ever wondered about a franchise that champions sustainability and small business growth? Winmark Corporation (WINA), a nationally recognized franchisor, stands out with its unique resale business model. But how exactly does Winmark operate, and what makes it a compelling player in today's market? Keep reading to explore its history, ownership, business model, and financial performance, including a net income of $39.95 million for the year ended December 28, 2024.

Winmark Corporation (WINA) History

Founding Timeline

Year established

The company was established in 1988.

Original location

The original location was in Minneapolis, Minnesota.

Founding team members

The founder was John T. Morgan, who served as Chairman and Chief Executive Officer.

Initial capital/funding

Information regarding the initial capital or funding is not readily available in the provided context.

Evolution Milestones

Transformative Moments

• Strategic Shift to Franchising: The company's focus on franchising for retail provided a scalable business model.
• Diversification of Brands: Winmark diversified its portfolio of brands, including Plato's Closet, Once Upon A Child, Play It Again Sports, Music Go Round, and Style Encore, each targeting different niche markets.
• Financial Services Expansion: Winmark's expansion into financial services, particularly through Winmark Franchise Partners (formerly Wirth Business Credit), allowed it to support its franchisees and enhance their financial stability.
• Leadership Transition: The transition to Carlos R. Paz as CEO in 2015 marked a transformative moment, driving further strategic initiatives and growth.

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Winmark Corporation (WINA) Ownership Structure

Winmark Corporation has a diverse ownership structure, encompassing individual investors, institutional holders, and company insiders, reflecting a mix of stakeholders with varying levels of investment and influence.

Winmark Corporation's Current Status

Winmark Corporation is a publicly traded company, meaning its shares are available for purchase on the open market, allowing a wide range of investors to participate in its ownership.

Winmark Corporation's Ownership Breakdown

As of the fiscal year 2024, the ownership of Winmark Corporation is distributed among various shareholders. While precise individual holdings can fluctuate, the following table represents a general overview of the ownership breakdown:

Winmark Corporation's Leadership

The leadership team is responsible for the strategic direction and operational management of the company. Key members of the leadership team as of April 2025 typically include:

• Brett D. Heffes: Chief Executive Officer
• Anthony D. Ishaug: President and Chief Operating Officer
• Steven M. Hagen: Senior Vice President and Chief Financial Officer

These individuals, along with other key executives and the board of directors, guide the company's strategies and ensure its financial health. To gain more insight into the company's goals, check out: Mission Statement, Vision, & Core Values of Winmark Corporation (WINA).

Winmark Corporation (WINA) Mission and Values

Winmark Corporation aims to be North America’s top franchisor of value-oriented retail concepts. The company emphasizes integrity, customer satisfaction, and building strong relationships with its franchisees.

Winmark Corporation's Core Purpose

Official mission statement

While a specific, formally published mission statement is not readily available in recent public filings or company information, Winmark's approach can be discerned from its operational focus and values. Their core mission revolves around:

• Providing attractive franchise opportunities within the value-oriented retail sector.
• Delivering value to customers through its various resale brands.
• Supporting franchisees through comprehensive training, marketing, and operational support.
• Maintaining financial stability and growth for shareholders.

Vision statement

Similarly, a formal vision statement is not explicitly declared. However, the vision can be inferred from the company's strategic goals and consistent performance:

• To be the leading franchisor in the resale retail industry across North America.
• To continually enhance brand recognition and customer loyalty for each of its franchise brands.
• To foster a collaborative and profitable relationship with franchisees, ensuring mutual success.
• To drive innovation and sustainability within the resale model, adapting to changing consumer preferences and market dynamics.

Company slogan/tagline

While Winmark Corporation itself does not have a single overarching tagline, each of its brands communicates its value proposition through individual slogans:

• Play It Again Sports: 'Your Neighborhood Sports Store' emphasizing community and accessibility.
• Once Upon A Child: Focuses on value and sustainability in children's apparel and goods.
• Plato's Closet: Targets trendy teens and young adults, highlighting fashion and affordability.
• Music Go Round: Caters to musicians, emphasizing value and selection in used musical instruments.
• Style Encore: Offers fashion and value for women, focusing on current styles and affordability.

For more insights into Winmark's investor profile, you might find this resource helpful: Exploring Winmark Corporation (WINA) Investor Profile: Who’s Buying and Why?

Winmark Corporation (WINA) How It Works

Winmark Corporation operates as a franchisor, focusing on value-oriented retail concepts that buy, sell, and trade used merchandise. The company primarily generates revenue through franchise fees, royalties, and sales of products to franchisees.

Winmark's Product/Service Portfolio

Winmark's Operational Framework

Winmark's operational framework revolves around franchising, which allows for rapid expansion with limited capital investment. The company supports its franchisees through:

• Franchise Recruitment and Training: Winmark carefully selects franchisees and provides them with comprehensive training programs to ensure they understand the business model and operational procedures.
• Real Estate Assistance: Winmark provides support in identifying suitable locations for franchise stores.
• Proprietary Software and Technology: The company offers proprietary software, including a point-of-sale (POS) system, to manage inventory, sales, and customer data efficiently.
• Marketing and Advertising Support: Winmark provides marketing and advertising support to help franchisees attract and retain customers.
• Supply Chain Management: While franchisees primarily source their inventory through buying and trading used merchandise, Winmark may provide some support in sourcing new products or supplies.

Winmark's Strategic Advantages

Winmark's strategic advantages stem from its well-established franchise system and focus on the resale market:

• Strong Brand Recognition: Each of Winmark's brands has established a strong presence in its respective market, creating customer loyalty and repeat business.
• Proven Business Model: The franchise model allows for consistent operations and scalability.
• Proprietary Technology: Winmark’s software provides a competitive edge by streamlining operations and providing valuable data insights.
• Focus on Sustainability: The resale model aligns with growing consumer interest in sustainable and environmentally friendly shopping options.
• Multiple Revenue Streams: Winmark generates revenue from franchise fees, royalties, and equipment sales, diversifying its income sources.

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Winmark Corporation (WINA) How It Makes Money

Winmark Corporation primarily generates revenue through franchising, leasing, and product sales that support its resale-retail franchise systems.

Winmark Corporation's Revenue Breakdown

Winmark Corporation's Business Economics

Winmark's business model is built around creating, supporting, and developing resale franchises. Here are key aspects of its business economics:

• Franchise Model: Winmark earns ongoing royalties from its franchisees, typically a percentage of their gross sales. This provides a recurring revenue stream.
• Scalability: The franchise model allows for rapid expansion with relatively low capital expenditure for Winmark, as the franchisees bear most of the store-level investment.
• Diverse Brands: With multiple brands targeting different resale segments (children's apparel, sporting goods, music instruments, etc.), Winmark diversifies its revenue streams and market reach.
• Leasing and Financing: Winmark provides leasing options to its franchisees, generating additional income and facilitating store setups.
• Technology and Support: The company offers proprietary software and support services, enhancing franchisee operations and loyalty.

Winmark Corporation's Financial Performance

Winmark has demonstrated consistent financial performance through its strategic approach to franchising and financial management. Key highlights include:

• Consistent Revenue Growth: Winmark has shown a history of steady revenue growth, driven by increases in franchise locations and same-store sales. For example, in 2024, the company reported revenues of $96.2 million, compared to $87.6 million in 2023, demonstrating a growth of approximately 9.8%.
• High Gross Profit Margin: The company maintains a high gross profit margin due to its franchise-based business model, where a significant portion of revenue comes from royalties and fees.
• Strong Net Income: Winmark’s net income reflects its operational efficiency and profitability. In 2024, net income was $37.4 million, up from $32.2 million in 2023, showcasing a substantial increase in profitability.
• Healthy Cash Flow: The business generates strong cash flow from operations, supporting investments in franchise development and shareholder returns.
• Return on Equity (ROE): Winmark consistently achieves high ROE, indicating effective use of equity to generate profits. The ROE was 33.2% in 2024, compared to 29.2% in 2023.
• Strategic Capital Allocation: Winmark is dedicated to returning value to shareholders through dividends and stock repurchases, reflecting confidence in its business model and financial health.

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Winmark Corporation (WINA) Market Position & Future Outlook

Winmark Corporation holds a strong position in the resale retail sector, particularly through its franchising model. Its future outlook appears positive, driven by increasing consumer interest in value and sustainability, which aligns well with the company's business model. Further insights can be found here: Breaking Down Winmark Corporation (WINA) Financial Health: Key Insights for Investors.

Competitive Landscape

Opportunities & Challenges

Industry Position

Winmark Corporation occupies a unique niche within the resale industry through its franchise-based model. This approach offers several advantages:

• Brand diversification: Each of Winmark’s brands (Play It Again Sports, Plato's Closet, Once Upon A Child, Music Go Round, and Style Encore) targets different segments, reducing overall risk.
• Community focus: Franchises are locally owned and operated, fostering strong ties with their communities and enhancing customer loyalty.
• Scalability: The franchise model enables rapid expansion with relatively low capital investment from the parent company.

The company's focus on durable goods and specific resale niches, like sporting goods or children's apparel, helps it maintain a competitive edge against broader online marketplaces.