Business Breakdowns
Episode 159 Winmark: Resale at Scale
Business Breakdowns

Episode 159: Winmark: Resale at Scale

Business Breakdowns

Episode 159

Winmark: Resale at Scale

Brett Heffes is the current CEO of Winmark. We cover how its franchising model works, its prudent and unique approach to capital allocation, and the scale of the market for second-hand apparel more broadly.

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(00:00:00) - Welcome to Business Breakdowns

(00:04:25) - Exploring the Resale Market with Winmark's CEO

(00:06:34) - The Mechanics of Winmark's Franchise Model

(00:07:10) - Winmark's Unique Position In The Resale Economy

(00:12:21) - Franchisee Support and Business Model Insights

(00:20:44) - Growth Strategies and Franchisee Expansion Philosophy

(00:24:12) - A Look At The Franchisee Agreement

(00:26:57) - Traits of Successful Franchisees and Common Mistakes

(00:28:42) - Effective Marketing Strategies for Franchisees

(00:30:45) - The Importance of Viewing Stores as Legacy Assets

(00:32:33) - Renewal Rates and Franchisee Health as Key Metrics

(00:35:27) - Shifting Focus From Leasing Business to Core Resale Operations

(00:41:19) - Capital Allocation and Shareholder Value

(00:45:51) - A Unique Approach to Investor Relations

(00:47:31) - Lessons Learned From Breaking Down Winmark

 

Winmark: Resale at Scale

Introduction

Matt
Welcome back to Business Breakdowns. Today, we explore a major player in the reseller economy that is Winmark. You're likely familiar with some of Winmark's brands like Plato's Closet or Play It Again Sports, but together, Winmark operates five brands through a franchising model. Our guest to break down Winmark is the current CEO, Brett Heffes.

Now we listen to our audience, and we try to be cognizant of the guests we invite. The overwhelming majority of our audience prefers investors to management teams. So why did we explore this episode with Brett? Well, Winmark doesn't host conference calls, and their Investor Relations are generally limited to financial reports, some very basic management commentary and some rare public appearances. That alone was intriguing to us. But I'd add, when we talk to Brett, it was very clear this was not an investor relations exercise.

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