Winmark Corporation and subsidiaries offer licenses to operate franchises using the service marks Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round.
In addition, the company sells point-of-sale system hardware to its franchisees and certain merchandise to its Play It Again Sports franchisees. The company also operates a middle-market equipment leasing businesses under the Winmark Capital mark.
As of December 28, 2024, there were franchises in operation i...
Winmark Corporation and subsidiaries offer licenses to operate franchises using the service marks Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round.
In addition, the company sells point-of-sale system hardware to its franchisees and certain merchandise to its Play It Again Sports franchisees. The company also operates a middle-market equipment leasing businesses under the Winmark Capital mark.
As of December 28, 2024, there were franchises in operation in the United States and Canada and over 2,800 available territories.
The company’s concepts also offer a limited amount of new merchandise to customers. The company continues to enhance its franchise model and provides its franchisees with the technology, tools and training to profitably expand their operations and evolve towards being a multi-channel retailer.
Operations
The company franchises five brands:
Plato’s Closet
Plato’s Closet franchisees buy and sell gently used clothing and accessories geared toward the teenage and young adult market. Customers have the opportunity to sell their used items to Plato’s Closet stores and to purchase quality used clothing and accessories.
Once Upon A Child
Once Upon A Child franchisees buy and sell gently used and, to a lesser extent, new children’s clothing, toys, furniture, equipment and accessories. This brand primarily targets parents of children ages infant to 12 years. These customers have the opportunity to sell their used children’s items to a Once Upon A Child store when outgrown and to purchase quality used children’s clothing, toys, furniture and equipment at prices lower than new merchandise.
Play It Again Sports
Play It Again Sports franchisees buy, sell and trade gently used and new sporting goods, equipment and accessories for a variety of athletic activities, including team sports (baseball/softball, hockey, football, lacrosse, soccer), fitness, ski/snowboard and golf among others. The stores offer a flexible mix of merchandise that is adjusted to adapt to seasonal and regional differences.
Style Encore
Style Encore franchisees buy and sell gently used women’s (and to a lesser extent, men’s) apparel, shoes and accessories. Customers have the opportunity to sell their used items to Style Encore stores and to purchase quality used clothing, shoes and accessories at prices lower than new merchandise.
Music Go Round
Music Go Round franchisees buy, sell and trade gently used and, to a lesser extent, new musical instruments, speakers, amplifiers, music-related electronics and related accessories.
The company has developed an e-commerce platform that allows franchisees of its Music Go Round, Play It Again Sports, and Style Encore brands to market and sell in-store product inventory online. Consumers that visit musicgoround.com, playitagainsports.com, or style-encore.com can find all products listed by participating stores in one convenient location. All product listings are available for in-store pickup, and certain products may be available for shipment. The company's e-commerce platform assists its franchisees in marketing, increasing brand awareness, and driving consumers to local stores, which provides further opportunities for the stores to purchase products from consumers. Additionally, the company's franchisees use other vehicles to drive non-store sales, including social media platforms (Facebook and Instagram), as well as third-party e-commerce platforms (Shopify) and marketplaces (eBay).
Franchising Business Model
The company uses franchising as a business method of distributing goods and services through its retail brands to consumers. The company, as franchisor, own a retail business brand, represented by a service mark or similar right, and an operating system for the franchised business. The company then enters into franchise agreements with franchisees and grant the franchisee the right to use its business brand, service marks and operating system to manage a retail business. Franchisees are required to operate their retail businesses according to the systems, specifications, standards and formats the company develops for the business brand. The company trains the franchisees how to operate the franchised business. The company also provides continuing support and service to its franchisees.
The company has developed value-oriented retail brands based on a mix of gently used and, to a lesser extent, new merchandise. The company franchises rights to franchisees who open franchised locations under such brands.
The key elements of its franchise strategy include franchising the rights to operate retail stores offering value-oriented merchandise; attracting new, qualified franchisees; and providing initial and continuing support to franchisees.
Offering Value-Oriented Merchandise
The company’s retail brands provide value to consumers by purchasing and reselling gently used merchandise that consumers have outgrown or no longer use at substantial savings from the price of new merchandise.
Franchise Support
As a franchisor, its success depends upon the company’s ability to develop and support competitive and successful franchise owners. The company emphasizes the following areas of franchise support and assistance.
Training
Each franchisee must attend the company’s training program regardless of prior experience. Soon after signing a franchise agreement, the franchisee is required to attend new owner orientation training. This course covers basic management issues, such as preparing a business plan, lease evaluation, evaluating insurance needs and obtaining financing. The company’s training staff assists each franchisee in developing a business plan for their retail store with financial and cash flow projections. The second training session is centered on store operations. It covers, among other things, point-of-sale computer training, inventory selection and acquisition, sales, marketing and other topics. The company provides the franchisee with operations manuals that it periodically updates.
Operations Support
The company provides operational support and guidance to assist the franchisee in the opening of a new business. The company also has an ongoing support program designed to assist franchisees in operating their retail stores. The company’s franchise support personnel visit each store periodically (in person or virtually) and, in most cases, a business assessment is made to determine whether the franchisee is operating in accordance with its standards. The visit is also designed to assist franchisees with operational issues.
Purchasing
The company has developed specialized computer point-of-sale systems for its brands that provide the franchisee with standardized pricing information to assist in the purchasing of used items.
The company provides centralized buying services, which on a limited basis include credit and billing for the Play It Again Sports franchisees. The company’s Play It Again Sports franchise system uses several major vendors for new product including Adidas, Wilson Sporting Goods, Champro Sports, Rawlings/Easton, CCM Hockey and Bauer Hockey.
To provide the franchisees of the company’s Play It Again Sports, Once Upon A Child and Music Go Round systems a source of affordable new product, it has developed relationships with its significant vendors and negotiated prices for its franchisees to take advantage of the buying power a franchise system brings.
The company’s typical Once Upon A Child franchised store purchases approximately 30% of its new product from Rachel’s Ribbons, Wild Side Accessories, Melissa & Doug and Nuby.
The company’s typical Music Go Round franchised store purchases approximately 50% of its new product from KMC/Musicorp, RapcoHorizon Company, D’Addario, GHS Corporation and Ernie Ball.
Retail Advertising and Marketing
The company encourages its franchisees to implement a marketing program that includes the following: television, radio, point-of-purchase materials, in-store signage and local store marketing programs, as well as email marketing promotions, website promotions and participation in social and digital media. Franchisees of the respective brands are required to spend a minimum of 5% of their gross sales on approved advertising and marketing. Franchisees may be required to participate in regional cooperative advertising groups.
Computerized Point-Of-Sale Systems
The company requires its franchisees to use a retail information management computer system in each store, which has evolved with the development of new technology. This computerized point-of-sale system is designed specifically for use in the company’s franchise retail stores. The system includes the company’s proprietary Data Recycling System software, a dedicated server, two or more work station registers with touch screen monitors, receipt printers, label printers and bar code scanners, together with software modules for inventory management, cash management and customer information management. The company’s franchisees purchase the computer hardware from it. The Data Recycling System software is designed to accommodate buying of used merchandise. The company provides point-of-sale system support through its Computer Support Center.
The Franchise Agreement
The company enters into franchise agreements with its franchisees.
Competition
The company’s franchisees increasingly compete with online used and new goods marketplaces, such as eBay, craigslist, facebook Marketplace, Poshmark, thredUP, Amazon and many others.
The company's Plato’s Closet franchise stores primarily compete with specialty apparel stores, such as American Eagle, Gap, Abercrombie & Fitch, Old Navy, Hollister, and Forever 21.
The company's Once Upon A Child franchisees compete primarily with large retailers, such as Walmart, Target, and various specialty children’s retail stores, such as Carter’s and Gap Kids.
The company's Play It Again Sports franchisees compete with large retailers, such as Dick’s Sporting Goods, Academy Sports & Outdoors, as well as regional and local sporting goods stores. The company also competes with Target and Walmart.
The company's Music Go Round franchise stores compete with large musical instrument retailers, such as Guitar Center, as well as local independent musical instrument stores.
Equipment Leasing Operations
The company’s leasing operations consist of a middle-market leasing business through Winmark Capital Corporation, which is a wholly-owned subsidiary. The company’s middle-market leasing business began operations in 2004.
Trademarks and Service Marks
The company has various trademark registrations and pending trademark applications for registration, including Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore, Music Go Round, Winmark, Winmark – the Resale Company, and Resale for Everyone, among others.
Seasonality
The company’s Plato’s Closet and Once Upon A Child franchise brands have experienced higher than average sales volumes during the spring months and during the back-to-school season. The company’s Play It Again Sports franchise brand has experienced higher than average sales volumes during the winter season. Overall, the different seasonal trends of the company’s brands partially offset each.
History
Winmark Corporation was founded in 1988. The company was incorporated in 1988.