Winmark (WINA) risk factors, FY2024 10-K

Winmark's FY2024 10-K, filed Feb 26, 2025, lists 13 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
130 groups
Section length
2k wordsItem 1A

Winmark's biggest risks in the FY2024 10-K

  • Winmark Corp relies heavily on franchise renewals and new franchise openings to drive revenue growth.
  • Franchisee supply chains depend on inconsistent used merchandise sourced from the public.
  • The business is subject to intense retail competition and strict franchise regulations across multiple jurisdictions.

The risks most specific to Winmark

  • We are dependent on franchise renewals

    Franchise agreements last 10 years, and failure to secure renewals from franchisees could harm our business.

  • We are dependent on new franchisees

    Macroeconomic conditions may hinder potential franchisees from obtaining external financing or maintaining the net worth needed to open new locations.

  • We may sell franchises for a territory, but the franchisee may not open

    Awarded franchise territories may fail to open on time or require us to resell terminated and expired agreements.

  • Our franchisees are dependent on supply of used merchandise

    Franchisees rely on the general public for an irregular and potentially unreliable supply of used merchandise for retail brands.

  • We may be unable to collect accounts receivable from franchisees

    A significant decline in our ability to collect accounts receivable from franchisees would incur additional earnings charges.

  • We currently, and may in the future, have assets held at financial institutions that may exceed the insurance coverage offered by the Federal Deposit Insurance Corporation, the loss of such assets would have a severe negative affect on our operations and liquidity

    Cash assets held at financial institutions may exceed the FDIC insurance limit of $250,000, creating uninsured loss exposure.

  • We are subject to restrictions in our line of credit/term loan and note facilities. Additionally, we are subject to counter party risk in our line of credit facility

    Our credit and note facilities impose operating and financial restrictions, including debt service coverage and leverage tests.

  • We are subject to government regulation

    We must comply with pre-sale franchise registration and disclosure laws enforced by the FTC, 14 states, and 6 Canadian provinces.

  • We may be unable to protect against data security risks

    Security system failures could expose confidential information of employees, franchisees, customers, and suppliers to unauthorized access.

All 13 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Our business, results of operations, financial condition, cash flows and the market value of our common stock can be adversely affected by pandemics, epidemics or other public health emergencies, such as the outbreak of COVID-19
  2. 02We are dependent on franchise renewals
  3. 03We are dependent on new franchisees
  4. 04We may make additional investments outside of our core businesses
  5. 05We may sell franchises for a territory, but the franchisee may not open
  6. 06Our franchisees are dependent on supply of used merchandise
  7. 07We may be unable to collect accounts receivable from franchisees
  8. 08We operate in an extremely competitive industry
  9. 09We currently, and may in the future, have assets held at financial institutions that may exceed the insurance coverage offered by the Federal Deposit Insurance Corporation, the loss of such assets would have a severe negative affect on our operations and liquidity
  10. 10We are subject to restrictions in our line of credit/term loan and note facilities. Additionally, we are subject to counter party risk in our line of credit facility
  11. 11We are subject to government regulation
  12. 12We may be unable to protect against data security risks
  13. 13Our stock price will fluctuate, and at times these fluctuations may be volatile

Other Winmark 10-Ks

  • FY2025 10-K risk factors
    13 risks1 new1 dropped1 reworded

    Winmark added operational risk from modernizing its required franchisee point-of-sale system, dropped a risk about outside investments, and appended outside investment language to stock price volatility.

    Filed Feb 25, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.