What the changes say
- 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.
What changed since the prior 10-K
New
- New
Our franchisees’ reliance on a required point-of-sale system, including our efforts to modernize that system, could disrupt franchisee operations and adversely affect our business
Modernizing the required point-of-sale system for franchisees could cause operational disruptions, workflow interruptions, and system instability.
Dropped
- Dropped
We may make additional investments outside of our core businesses
Reworded
- 40% rewritten
Our stock price will fluctuate, and at times these fluctuations may be volatile
Added language regarding potential investments outside of our core businesses and the risk of unsuccessful results.
All 13 risk factors
Headings as the filing states them, in filing order.
Other
- 01We are dependent on franchise renewals
- 02We are dependent on new franchisees
- 03We may sell franchises for a territory, but the franchisee may not open
- 04Our franchisees are dependent on supply of used merchandise
- 05We may be unable to collect accounts receivable from franchisees
- 06Our franchisees’ reliance on a required point-of-sale system, including our efforts to modernize that system, could disrupt franchisee operations and adversely affect our businessNew
- 07We operate in an extremely competitive industry
- 08We 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
- 09We 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
- 10We are subject to government regulation
- 11We may be unable to protect against data security risks
- 12Our stock price will fluctuate, and at times these fluctuations may be volatile40% rewritten
- 13Our 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
Other Winmark 10-Ks
- FY2024 10-K risk factors13 risks
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.
Filed Feb 26, 2025
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.