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Winmark: When Second-Hand Becomes a Profit Machine

R. Dietenberger
Reading Time: 4 minutes

Winmark Corporation operates an exceptionally profitable niche business in retail – not through traditional stores, but via a franchise model for second-hand chains like Plato's Closet, Once Upon A Child, and Play It Again Sports. These brands focus on used clothing, children's equipment, and sports gear, appealing to price-sensitive consumers who also prioritize quality. Winmark earns revenue not from merchandise sales, but through franchise fees and services for franchisees – a high-margin model with predictable cash flows. The company additionally...

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