Note 3 - Revenue Recognition

12 Months Ended

Nov. 30, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 3 - Revenue Recognition

Disaggregation of Revenue

The following table presents disaggregation of revenue from contracts with customers for the year ended November 30, 2023 and 2022:

	For year ended November 30, 2023		For year ended November 30, 2022
Revenue recognized at a point in time
Sign Shop revenue	$	2,279	$	3,296
Settlement revenue		33,500		16,750
Lease income		-		5,319
Total revenue at a point in time		35,779		25,365
Revenue recognized over time
Royalty revenue		1,944,894		1,838,276
Franchise fees		26,999		53,149
License fees		17,145		17,743
Gift card revenue		21,129		4,665
Nontraditional revenue		220,009		266,569
Marketing fund revenue		1,243,890		1,081,320
Total revenue over time		3,474,066		3,261,722
Grand total	$	3,509,845	$	3,287,087

Contract balances

The balance of contract liabilities includes franchise fees, license fees and vendor payments that have ongoing contract rights and the fees are being straight lined over the contract life. Contract liabilities also include marketing fund balances and gift card liability balances.

	November 30, 2023		November 30, 2022
Liabilities
Contract liabilities - current	$	458,162	$	563,895
Contract liabilities - long-term		162,026		128,465
Total Contract Liabilities	$	620,188	$	692,360

	November 30, 2023			November 30, 2022
Contracts at beginning of period	$	692,360		$	972,470
Revenue Recognized during period		(1,685,740	)		(1,742,303	)
Additions during period		1,613,568			1,462,193
Contracts at end of period	$	620,188		$	692,360

Transaction price allocated to remaining performance obligations (franchise agreements and license fee agreement) for the year ended November 30:

2024	30,094
2025		33,833
2026		20,253
2027		18,553
2028		18,021
Thereafter		71,366
Total	$	192,120

The Company has elected to apply certain practical expedients as defined in ASC 606-10-50-14 through 606-10-50-14A, including (i) performance obligations that are a part of a contract that has an original expected duration of one year or less; (ii) the right to invoice practical expedient; and (iii) variable consideration related to unsatisfied performance obligations that is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation, and the terms of that variable consideration relate specifically to our efforts to transfer the distinct service, or to a specific outcome from transferring the distinct service. As such, sales-based royalty and marketing income, as well as gift card breakage revenue, is not included in the above transaction price chart.