5. North American Advertising Fund

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During the three months ended September 26, 2026, the Company implemented the Plato's Closet North American Advertising Fund (the “Ad Fund”). Franchisees of Plato’s Closet stores contribute 2% of sales to the Ad Fund. Contributions and expenditures are reported on a gross basis in the Consolidated Condensed Statement of Operations within North American advertising fund revenue and North American advertising fund expense, respectively. Contributions to the Ad Fund will be used to generate Plato’s Closet specific creative, working media and marketing infrastructure improvements to increase brand visibility. A portion of the Ad Fund proceeds will cover reasonable costs incurred by Winmark for administering the Ad Fund, including investments in personnel or contractors and continued investments in marketing activities. The Company recognized $3.8 million of advertising fund revenue and $3.8 million of related advertising fund expense during the three months ended September 26, 2026.