BAB (BABB) 10-Q 12 Jul 24 2024 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	May 31, 2024	Jul. 12, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2024
Document Transition Report	false
Entity File Number	0-31555
Entity Registrant Name	BAB, Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-4389547
Entity Address, Address Line One	500 Lake Cook Road, Suite 475
Entity Address, City or Town	Deerfield
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60015
City Area Code	847
Local Phone Number	948-7520
Title of 12(b) Security	Common Stock
Trading Symbol	BABB
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		7,263,508
Entity Central Index Key	0001123596
Current Fiscal Year End Date	--11-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May 31, 2024	Nov. 30, 2023
Current Assets
Cash	$ 1,937,678	$ 1,888,728
Restricted cash	229,919	183,944
Receivables
Trade accounts and notes receivable (net of allowance for doubtful accounts of $49,618 in 2024 and $28,873 in 2023)	73,131	71,681
Marketing fund contributions receivable from franchisees and stores	18,556	14,995
Lease receivable	5,937	5,900
Prepaid expenses and other current assets	95,813	96,544
Total Current Assets	2,361,034	2,261,792
Property, plant and equipment (net of accumulated depreciation of $159,414 in both 2024 and 2023.	0	0
Lease receivable	29,427	32,406
Trademarks	461,445	461,445
Goodwill	1,493,771	1,493,771
Definite lived intangible assets (net of accumulated amortization of $140,502 in 2024 and $138,541 in 2023)	14,384	16,345
Operating lease right of use	392,664	32,745
Total Noncurrent Assets	2,391,691	2,036,712
Total Assets	4,752,725	4,298,504
Current Liabilities	16,502	3,042
Income tax payable	123,747	47,334
Accrued expenses and other current liabilities	307,063	325,880
Current portion operating lease liability	44,066	39,818
Total Current Liabilities	742,781	647,992
Long-term Liabilities (net of current portion)	363,071	0
Deferred franchise revenue	157,743	162,026
Deferred tax liability	283,653	309,293
Total Long-term Liabilities	804,467	471,319
Total Liabilities	1,547,248	1,119,311
Preferred shares -$.001 par value; 1,000,000 Series A authorized; no shares outstanding as of May 31, 2024 and November 30, 2023	0	0
Common stock -$.001 par value; 15,000,000 shares authorized; 8,466,953 shares issued and 7,263,508 shares outstanding as of May 31, 2024 and November 30, 2023	13,508,257	13,508,257
Additional paid-in capital	987,034	987,034
Treasury stock	(222,781)	(222,781)
Accumulated deficit	(11,067,033)	(11,093,317)
Total Stockholders' Equity	3,205,477	3,179,193
Total Liabilities and Stockholders' Equity	4,752,725	4,298,504
Series A Preferred Stock [Member]
Receivables
Preferred shares -$.001 par value; 1,000,000 Series A authorized; no shares outstanding as of May 31, 2024 and November 30, 2023	0	0
Marketing Fund [Member]
Receivables
Contract Liabilities - Current	227,237	201,824
Franchise [Member]
Receivables
Contract Liabilities - Current	24,166	30,094
Deferred franchise revenue	$ 157,743	$ 162,026

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	May 31, 2024	Nov. 30, 2023
Trade accounts and notes receivable, allowance for doubtful accounts	$ 49,618	$ 28,873
Property, plant and equipment, accumulated depreciation	159,414	159,414
Definite lived intangible assets, accumulated amortization	$ 140,502	$ 138,541
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, authorized (in shares)	4,000,000	4,000,000
Preferred Stock, Shares Outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	8,466,953	8,466,953
Common stock, outstanding (in shares)	7,263,508	7,263,508
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, authorized (in shares)	1,000,000	1,000,000
Preferred Stock, Shares Outstanding (in shares)	0	0

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
REVENUES
Revenues	$ 882,838	$ 864,400	$ 1,718,772	$ 1,609,993
Payroll and payroll-related expenses	231,482	231,904	487,811	503,623
Occupancy	28,950	33,759	62,291	68,407
Advertising and promotion	398	4,904	762	7,705
Professional service fees	37,834	25,625	89,613	78,677
Travel	5,209	7,043	8,231	8,274
Employee benefit expenses	33,829	38,548	70,633	77,870
Depreciation and amortization	981	922	1,961	1,845
Marketing fund expenses	306,636	286,739	566,047	525,057
Other	51,069	63,866	122,993	118,046
Total Operating Expenses	696,388	693,310	1,410,342	1,389,504
Income from operations	186,450	171,090	308,430	220,489
Interest income	16,735	5,438	32,260	5,559
Income before provision for income taxes	203,185	176,528	340,690	226,048
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current tax expense	61,349	75,823	122,140	90,023
Deferred tax expense	(3,849)	(25,823)	(25,640)	(25,823)
Total Tax Provision.	57,500	50,000	96,500	64,200
Net Income	$ 145,685	$ 126,528	$ 244,190	$ 161,848
Net Income per share - Basic and Diluted (in dollars per share)	$ 0.02	$ 0.02	$ 0.03	$ 0.02
Weighted average shares outstanding - Basic and diluted (in shares)	7,263,508	7,263,508	7,263,508	7,263,508
Cash distributions declared per share (in dollars per share)	$ 0.01	$ 0.01	$ 0.03	$ 0.03
Royalty [Member]
REVENUES
Revenues	$ 513,474	$ 494,933	$ 973,163	$ 937,541
Franchise [Member]
REVENUES
Revenues	9,215	7,054	19,461	11,401
Licensing Fees and Other Income [Member]
REVENUES
Revenues	53,513	75,674	160,101	135,994
Marketing Fund [Member]
REVENUES
Revenues	$ 306,636	$ 286,739	$ 566,047	$ 525,057

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	May 31, 2024	May 31, 2023
Operating activities
Net Income	$ 244,190	$ 161,848
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	1,961	1,845
Deferred tax expense	(25,640)	(25,823)
Provision for uncollectible accounts, net of recoveries	20,745	0
Noncash lease expense	47,577	49,655
Trade accounts receivable and notes receivable	(19,253)	17,538
Marketing fund contributions receivable	(3,561)	(9,555)
Prepaid expenses and other	731	68,496
Accounts payable	13,460	8,255
Accrued liabilities	57,596	20,783
Unexpended marketing fund contributions	25,413	68,490
Deferred revenue	(10,211)	32,218
Operating lease liability	(40,177)	(58,940)
Net Cash Provided by Operating Activities	312,831	334,810
Financing activities
Cash distributions/dividends	(217,906)	(217,905)
Net Cash Used In Financing Activities	(217,906)	(217,905)
Net (Decrease)/Increase in Cash and Restricted Cash	94,925	116,905
Cash and Restricted Cash - Beginning of Period	2,072,672	1,902,661
Cash and Restricted Cash - End of Period	2,167,597	2,019,566
Interest paid	0	0
Income taxes paid	78,500	7,500
Non-cash operating activities:
Right-of-use operating asset obtained in exchange for operating lease liability	$ 401,430	$ 0

Note 1 - Nature of Operations

Note 1 - Nature of Operations	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Nature of Operations [Text Block]	Note 1. Nature of Operations BAB, Inc. (“the Company”) has three The Company was incorporated under the laws of the State of Delaware on July 12, 2000. The Company currently franchises and licenses bagel and muffin retail units under the BAB, MFM and SD trade names. At May 31, 2024, the Company had 64 franchise units and 4 licensed units in operation in 20 states. There are 4 units under development. The Company additionally derives income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements. The BAB franchised brand consists of units operating as “Big Apple Bagels®,” featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as “My Favorite Muffin Gourmet Muffin Bakery®” (“MFM Bakery”), featuring a large variety of freshly baked muffins and coffees and units operating as “My Favorite Muffin Your All-Day Bakery Café®” (“MFM Cafe”) featuring these products as well as a variety of specialty bagel sandwiches and related products. The SweetDuet® is a branded self-serve frozen yogurt that can be added as an additional brand in a BAB location. Although the Company doesn't actively market Brewster's stand-alone franchises, Brewster's coffee products are sold in most franchised units. The Company is leveraging on the natural synergy of distributing muffin products in existing BAB units and, alternatively, bagel products and Brewster's Coffee in existing MFM units. The Company expects to continue to realize efficiencies in servicing the combined base of BAB and MFM franchisees. The Company has a minority interest in Athletes HQ Systems, Inc. (“AHQ”). AHQ franchises indoor baseball and softball practice and coaching facilities with knowledgeable instructors. The accompanying condensed consolidated financial statements are unaudited. These financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted pursuant to such SEC rules and regulations; nevertheless, the Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements and the notes hereto should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended November 30, 2023 which was filed February 26, 2024. In the opinion of the Company's management, the condensed consolidated financial statements for the unaudited interim period presented include all adjustments, including normal recurring adjustments, necessary to fairly present the results of such interim period and the financial position as of the end of said period. The results of operations for the interim period are not necessarily indicative of the results for the full year.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies Unaudited Consolidated Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements of BAB, Inc. have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the financial statements and accompanying notes are in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and treasury notes with banks and equity firms with original maturities of less than 90 days. The balance of bank accounts may, at times, exceed federally insured credit limits. The Company has not experienced any loss in such accounts and believes it is not subject to any significant credit risk related to cash at May 31, 2024. Accounts Receivable and Notes Receivable The Company adopted FASB ASC Topic 326, Financial Instruments - Credit Losses, (“CECL”) with an adoption date of December 1, 2023. As a result, the Company changed its accounting policy for allowance for credit losses and the policy pursuant to CECL is disclosed below. The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. The Company records specific reserves against account balances of franchisees deemed at-risk when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed at-risk, an allowance is recorded based on expected loss rates derived pursuant to the Company's CECL methodology that assesses four components - historical losses, current conditions, reasonable and supportable forecasts, and a reversion to history, if applicable. The Company considers its portfolio segments to be the following: Accounts Receivable (Franchise-Related Notes Receivable Leases Receivable Accounts Receivables (Vendor Related) Receivable balances by portfolio segment as of May 31, 2024 and November 30, 2023 are as follows: May 31, 2024 November 30, 2023 Accounts Receivable (Franchise Related) $ 65,632 $ 55,781 Accounts Receivable (Vendor Related) 21,750 28,895 Notes Receivable 53,923 30,873 Lease Receivable, Net of Unamortized Interest 35,364 38,306 176,669 153,855 Less: Allowance for Credit Losses (49,618 ) (28,873 ) Total Receivables 127,051 124,982 Less: Current Portion (97,624 ) (92,576 ) Long-Term Receivables $ 29,427 $ 32,406 The Company's internal credit quality indicators for all portfolio segments primarily consider delinquency. Current and collateralized lease receivables have an internal risk rating of Grade I. The Company does not currently have any uncollateralized lease receivables. Past due lease receivables would be assigned an internal risk rating of Grade II-IV, depending on significance of delinquency. For uncollateralized notes receivable, the Company also considers the status of the franchisee note holder and the term of the note. Notes receivable from current franchisees are considered to have an elevated risk of credit loss based on their common origination from past due franchise accounts receivable but have some indication of collectability given ongoing operations (Internal Grade II). Notes receivable due from payers who no longer have an operating franchise are considered to have a high likelihood of credit loss (Internal Grade III). That likelihood increases if the note is outstanding for longer than one year (Internal Grade IV). At May 31, 2024, all notes receivable were due from former franchisees and had an original term over one year. Changes in the allowance for credit losses during the six months ended May 31, 2024 were as follows: Accounts Receivable (Franchise Related) Accounts Receivable (Vendor Related) Notes Receivable Lease Receivable, Net Total Balance at November 30, 2023 $ - $ - $ 28,873 $ - $ 28,873 Adjustments to Allowance for Adoption of ASU 2016-13 - - - - - Write-offs - - - - - Recoveries - - (2,304 ) - (2,304 ) Provision for Credit Losses - - 23,049 - 23,049 Balance at May 31, 2024 $ - $ - $ 49,618 $ - $ 49,618 The Company considers a receivable past due 31 days after the payment due date. The delinquency status of receivables (other than accounts receivable) at May 31, 2024 was as follows: Current 0-30 days Past Due 30-60 days Past Due 60-90 days past due Over 90 days past due Total Notes Receivable $ 43,050 $ - $ - $ - $ 10,873 $ 53,923 Lease Receivable, Net of Unamortized Interest 35,364 - - - - 35,364 $ 78,414 $ - $ - $ - $ 10,873 $ 89,287 The fiscal year of origination of the Company's gross notes receivable and lease receivables by risk rating are as follows: 2024 2023 2022 2021 2020 Prior Total Risk rating Internal Grade I $ - $ - $ 35,364 $ - $ - $ - $ 35,364 Internal Grade II - - - - - - - Internal Grade III 24,094 18,956 - - - - 43,050 Internal Grade IV - - - - - 10,873 10,873 Notes and Lease Receivables, Net of Unamortized Interest $ 24,094 $ 18,956 $ 35,364 $ - $ - $ 10,873 $ 89,287 Lease Receivable The Company leases restaurant equipment to a certain franchisee under a sales-type lease agreement. Under the terms of the agreement, title to the equipment passes to the customer once all lease payments have been made and a reasonable buy-out fee is paid. The Company retains title or a security interest in the equipment until such time. The sales and cost of sales are recognized at the inception of the lease. The profit or loss on the issuance of the lease is recorded in the period of commencement. The investment in sales-type leases consists of the sum of the minimum lease payments receivable less unearned interest income and, if applicable, estimated executory cost. Minimum lease payments are part of the lease agreement between the Company (as the lessor) and the franchisee (as the lessee). The discount rate implicit in the lease is used to calculate the present value of minimum lease payments. The minimum lease payments consist of the gross lease payments net of executory costs, if any. Unearned interest income is amortized to income over the lease term to produce a constant periodic rate of return on net investment in the lease. While revenue is recognized at the inception of the lease, the cash flow from the sales-type lease occurs over the course of the lease, which results in interest income and reduction of receivables. Property, Plant and Equipment Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 to 7 years for property and equipment and 10 years, or term of lease if less, for leasehold improvements. Maintenance and repairs are charged to expense as incurred. Expenditures that materially extend the useful lives of assets are capitalized. Other Assets Other assets include a minority investment in AHQ Systems, Inc. The shares were issued to BAB, Inc. as compensation for consulting services and are valued at $2,250. The value of the investment is immaterial and has not been adjusted to fair market value. Advertising and Promotion Costs The Company expenses advertising and promotion costs as incurred. All advertising and promotion costs were related to the Company’s franchise operations. Lease Liabilities The company accounts for leases under ASC 842. Lease arrangements are determined at the inception of the contract. Operating leases are included in operating lease right-of-use (“ROU”) assets and other current and long-term operating lease liabilities on the consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities on the consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” which is intended to simplify various aspects related to accounting for income taxes. ASU 2023-09 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The amendments in ASU 2023-09 are effective for public business entities for fiscal years beginning after December 15, 2024, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company will adopt ASU 2023-09 for fiscal year ending November 30, 2026. Management does not believe that there are any recently issued and effective or not yet effective accounting pronouncements as of May 31, 2024 that would have or are expected to have any significant effect on the Company’s financial position, cash flows or income statement. Statement of Cash Flows The chart below shows the cash and restricted cash within the consolidated statements of cash flows as of May 31, 2024 and 2023 were as follows: May 31, 2024 May 31, 2023 Cash and cash equivalents $ 1,937,678 $ 1,682,226 Restricted cash 229,919 337,340 Total cash and restricted cash $ 2,167,597 $ 2,019,566

Note 3 - Revenue Recognition

Note 3 - Revenue Recognition	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	3. Revenue Recognition Franchise and related revenue The Company sells individual franchises. The franchise agreements typically require the franchisee to pay an initial, non-refundable fee prior to opening the respective location(s), and continuing royalty fees on a weekly basis based upon a percentage of franchisee net sales. The initial term of franchise agreements are typically 10 years. Subject to the Company’s approval, a franchisee may generally renew the franchise agreement upon its expiration. If approved, a franchisee may transfer a franchise agreement to a new or existing franchisee, at which point a transfer fee is typically paid by the current owner which then terminates that franchise agreement. A franchise agreement is signed with the new franchisee with no franchise fee required. If a contract is terminated prior to its term, it is a breach of contract and a penalty is assessed based on a formula reviewed and approved by management. Revenue generated from a contract breach is termed settlement income by the Company and included in licensing fees and other income. Under the terms of our franchise agreements, the Company typically promises to provide franchise rights, pre-opening services such as blueprints, operational materials, planning and functional training courses, and ongoing services, such as management of the marketing fund. The Company considers certain pre-opening activities and the franchise rights and related ongoing services to represent two separate performance obligations. The franchise fee revenue has been allocated to the two separate performance obligations using a residual approach. The Company has estimated the value of performance obligations related to certain pre-opening activities deemed to be distinct based on cost plus an applicable margin, and assigned the remaining amount of the initial franchise fee to the franchise rights and ongoing services. Revenue allocated to preopening activities is recognized when (or as) these services are performed. Revenue allocated to franchise rights and ongoing services is deferred until the store opens, and recognized on a straight-line basis over the duration of the agreement, as this ensures that revenue recognition aligns with the customer’s access to the franchise right. Royalty fees from franchised stores represent a 5% fee on net retail and wholesale sales of franchised units. Royalty revenues are recognized on an accrual basis using actual franchise receipts. Generally, franchisees report and remit royalties on a weekly basis. The majority of month-end receipts are recorded on an accrual basis based on actual numbers from reports received from franchisees shortly after the month-end. Estimates are utilized in certain instances where actual numbers have not been received and such estimates are based on the average of the last 10 weeks’ actual reported sales. Royalty revenue is recognized during the respective franchise agreement based on the royalties earned each period as the underlying franchise store sales occur. There are two items involving revenue recognition of contracts that require us to make subjective judgments: the determination of which performance obligations are distinct within the context of the overall contract and the estimated stand-alone selling price of each obligation. In instances where our contract includes significant customization or modification services, the customization and modification services are generally combined and recorded as one distinct performance obligation. Gift Card Breakage Revenue The Company sells gift cards to its customers in its retail stores and through its Corporate office. The Company’s gift cards do not have an expiration date and are not redeemable for cash except where required by law. Revenue from gift cards is recognized upon redemption in exchange for product and reported within franchisee store revenue and the royalty and marketing fees are paid and shown in the Condensed Consolidated Statements of Income. Until redemption, outstanding customer balances are recorded as a liability. An obligation is recorded at the time of sale of the gift card and it is included in accrued expenses on the Company’s Condensed Consolidated Balance Sheets. The liability is reduced when the gift cards are redeemed by a franchise. Although there are no expiration dates for our gift cards, based on our analysis of historical gift card redemption patterns, we can reasonably estimate the amount of gift cards for which redemption is remote, which is referred to as “breakage.” The Company recognizes gift card breakage proportional to actual gift card redemptions on a quarterly basis and the corresponding revenue is included in licensing fees and other revenue. Significant judgments and estimates are required in determining the breakage rate and will be reassessed each quarter. Nontraditional and rebate revenue As part of the Company’s franchise agreements, the franchisee purchases products and supplies from designated vendors. The Company may receive various fees and rebates from the vendors and distributors on product purchases by franchisees. In addition, the Company may collect various initial fees, and those fees are classified as deferred revenue in the balance sheet and straight lined over the life of the contract as deferred revenue in the balance sheet. The Company does not possess control of the products prior to their transfer to the franchisee and products are delivered to franchisees directly from the vendor or their distributors. The Company recognizes the rebates as franchisees purchase products and supplies from vendors or distributors and recognizes the initial fees over the contract life and the fees are reported as licensing fees and other income in the Condensed Consolidated Statements of Income. Marketing Fund Franchise agreements require the franchisee to pay continuing marketing fees on a weekly basis, based on a percentage of franchisee sales. Marketing fees are not paid on franchise wholesale sales. The balance sheet includes marketing fund cash, which is the restricted cash, accounts receivable and unexpended marketing fund contributions. Although the marketing fees are not separate performance obligations distinct from the underlying franchise right, the Company acts as the principal as it is primarily responsible for the fulfillment and control of the marketing services. As a result, the Company records marketing fees in revenues and related marketing fund expenditures in expenses in the Condensed Consolidated Statement of Income. The Company historically presented the net activities of the marketing fund within the balance sheet in the Condensed Consolidated Balance Sheet. While this reclassification impacts the gross amount of reported revenue and expenses the amounts will be offsetting, and there is no impact on net income. Disaggregation of Revenue The following table presents disaggregation of revenue from contracts with customers for the three months and six months ended May 31, 2024 and 2023: For three months ended May 31, 2024 For three months ended May 31, 2023 For six months ended May 31, 2024 For six months ended May 31, 2023 Revenue recognized at a point in time Sign Shop revenue $ - $ 2,022 $ 1,379 $ 2,179 Settlement revenue 1,000 6,000 26,610 12,500 Total revenue at a point in time 1,000 8,022 27,989 14,679 Revenue recognized over time Royalty revenue 513,474 494,933 973,163 937,541 Franchise fees 9,215 7,054 19,461 11,401 License fees 5,978 5,443 11,956 9,589 Gift card revenue 313 1,796 3,159 2,100 Nontraditional revenue 46,222 60,413 116,997 109,626 Marketing fund revenue 306,636 286,739 566,047 525,057 Total revenue over time 881,838 856,378 1,690,783 1,595,314 Grand total $ 882,838 $ 864,400 $ 1,718,772 $ 1,609,993 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. May 31, 2024 November 30, 2023 Liabilities Contract liabilities - current $ 481,823 $ 458,162 Contract liabilities - long-term 157,743 162,026 Total Contract Liabilities $ 639,566 $ 620,188 May 31, 2024 November 30, 2023 Contracts at beginning of period $ 620,188 $ 692,360 Revenue Recognized during period (724,651 ) (1,685,740 ) Additions during period 744,029 1,613,568 Contracts at end of period $ 639,566 $ 620,188 Transaction price allocated to remaining performance obligations (franchise agreements and license fee agreement) for the year ended November 30: 2024 $ 15,328 (a) 2025 26,005 2026 25,780 2027 19,133 2028 18,600 Thereafter 77,063 Total $ 181,909 (a) represents the estimate for the remainder of 2024

Note 4 - Units Open and Under D

Note 4 - Units Open and Under Development	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Units Open and Under Development [Text Block]	4. Units Open and Under Development Units which are open or under development at May 31, 2024 and 2023 are as follows: May 31, 2024 May 31, 2023 Stores open: Franchisee-owned stores 64 67 Licensed Units 4 3 68 70 Unopened stores with Franchise Agreements 4 4 Total operating units and units with Franchise Agreements 72 74

Note 5 - Earnings Per Share

Note 5 - Earnings Per Share	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	5. Earnings per Share The following table sets forth the computation of basic and diluted earnings per share: For the three months ended: For the six months ended: May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 Numerator: Net income available to common shareholders $ 145,685 $ 126,528 $ 244,190 $ 161,848 Denominator: Weighted average outstanding shares Basic and diluted common stock 7,263,508 7,263,508 7,263,508 7,263,508 Earnings per Share - Basic $ 0.02 $ 0.02 $ 0.03 $ 0.02

Note 6 - Goodwill and Other Int

Note 6 - Goodwill and Other Intangible Assets	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	6. Goodwill and Other Intangible Assets Accounting Standard Codification (“ASC”) 350 “Goodwill and Other Intangible Assets” requires that assets with indefinite lives no longer be amortized, but instead be subject to annual impairment tests. Following the guidelines contained in ASC 350, the Company tests goodwill and intangible assets that are not subject to amortization for impairment annually or more frequently if events or circumstances indicate that impairment is possible. The Company has elected to conduct its annual test during the first quarter. During the quarter ended February 29, 2024 and February 28, 2023, management qualitatively assessed goodwill to determine whether testing was necessary. Factors that management considers in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management and strategy, and changes in the composition and carrying amounts of net assets. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than it’s carrying value, a quantitative assessment is then performed. Based on a review of the First Quarter goodwill assessment during the current quarter, management does not

Note 7 - Lease Receivable

Note 7 - Lease Receivable	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Lessor, Sales-type Leases [Text Block]	7. Lease Receivable The Company leases restaurant equipment to a certain franchise under a sales-type lease agreement. The lease agreement does not contain any non-lease components. The lease term is for a period of seven years, beginning June 1, 2022 and ending June 1, 2029. The lease requires weekly payments of $121 for a total 365 payments, and a final optional buy-out payment of $4,800, which management believes estimates residual value. At May 31, 2024, management does not believe the unguaranteed residual asset value of $4,800 to be impaired. During the six months ending May 31, 2024, the Company recorded interest income from the lease receivable of $200. The sales lease is included in the balance sheet at the current value of the lease payments at a 1.25% discount rate, which reflects the rate implicit in the lease agreement. Future minimum lease payments receivable as of May 31, 2024 are as follows: Undiscounted Rent Payments Year Ending November 30: 2024 $ 3,142 2025 6,283 2026 6,404 2027 6,283 2028 6,283 thereafter 7,942 Total Undiscounted Lease Payments 36,337 Unamortized interest income (973 ) Lease receivable, net $ 35,364 Short-term lease receivable $ 5,937 Long-term lease receivable 29,427 Total lease receivable $ 35,364

Note 8 - Lease Commitments

Note 8 - Lease Commitments	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Commitments Disclosure [Text Block]	8. Lease Commitments The Company rents its office under an operating lease which requires it to pay base rent, real estate taxes, insurance and general repairs and maintenance. The lease effective during the quarter was signed in June of 2018, effective October 1, 2018, expiring on March 31, 2024. On February 15, 2024, a lease amendment was signed, effective April 1, 2024 for a 6-year period, expiring March 31, 2030, with an option to renew for a 5-year period. The amendment continues to require the Company to pay base rent, real estate taxes, insurance and general repairs and maintenance. The amendment includes a ten-month rent abatement over the lease term, specifically defined in the agreement, and tenant allowance in the amount of $158,940. The tenant allowance is to be applied evenly to the 62 months that were not abated. The renewal option has not been included in the measurement of the lease liability. Monthly rent expense is recognized on a straight-line basis over the term of the lease. At May 31, 2024 the remaining lease term was 70 months. The lease amendment is reflected in the balance of the Lease Liability on the balance sheet at the present value of the lease payments using an 8.50% discount rate. The discount rate was considered to be an estimate of the Company’s incremental borrowing rate. Gross future minimum annual rental commitments as of May 31, 2024 are as follows: Undiscounted Rent Payments Year Ending November 30: 2024 $ 45,546 2025 77,737 2026 80,837 2027 84,024 2028 96,163 Thereafter 136,725 Total Undiscounted Rent Payments $ 521,032 Present Value Discount (113,895 ) Present Value $ 407,137 Short-term lease liability $ 44,066 Long-term lease liability 363,071 Total Operating Lease Liability $ 407,137

Note 9 - Income Taxes

Note 9 - Income Taxes	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	9. Income Taxes For the three months ended May 31, 2024, the Company recorded current and deferred tax expense of $57,500 for an effective tax rate of 28.3% compared to $50,000 of current and deferred tax expense for the three months ended May 31, 2023 for an effective tax rate of 28.3%. For the six months ended May 31, 2024, the Company recorded current and deferred tax expense of $96,500 for an effective tax rate of 28.3% compared to $64,200 of current and deferred tax expense for the six months ended May 31, 2023 for an effective tax rate of 28.4%.

Note 10 - Stockholder's Equity

Note 10 - Stockholder's Equity	3 Months Ended
	May 31, 2024
Notes to Financial Statements
Equity [Text Block]	10. Stockholder ’ s Equity On June 06, 2024 the Board of Director (“Board”) declared a $0.01 quarterly cash distribution, payable on July 12, 2024 to shareholders of record as of June 24, 2024. On March 6, 2024 the Board declared a $0.01 quarterly cash distribution, payable on April 12, 2024 to shareholders of record as of March 21, 2024. On December 11, 2023 the Board declared a $0.02 cash distribution/dividend per share, $0.01 quarterly and $0.01 special to stockholders of record as of December 27, 2023, paid January 16, 2024. On September 12, 2023 the Board declared a $0.01 distribution/dividend per share to stockholders of record as of September 28, 2023, payable October 18, 2023. On June 6, 2023 the Board declared a $0.01 distribution/dividend per share to stockholders of record as of June 22, 2023, paid on July 11, 2023. On March 13, 2023 the Board declared a $0.01 distribution/dividend per share to stockholders of record as of March 30, 2023, paid on April 19, 2023. On December 07, 2022 the Board declared a $0.02 cash distribution/dividend per share, $0.01 quarterly and $0.01 special, to stockholders of record as of December 22, 2022 , . On May 6, 2013, the Board authorized and declared a dividend distribution of one one-thousandth The Board adopted the Rights Agreement to protect stockholders from coercive or otherwise unfair takeover tactics. In general terms, it works by imposing a significant penalty upon any person or group, other than exempt person as defined in the agreement, that acquires 15% (or 20% in the case of certain institutional investors who report their holdings on Schedule 13G) or more of the Common Shares without the approval of the Board. As a result, the overall effect of the Rights Agreement and the issuance of the Rights may be to render more difficult a merger, tender or exchange offer or other business combination involving the Company that is not approved by the Board. However, neither the Rights Agreement nor the Rights should interfere with any merger, tender or exchange offer or other business combination approved by the Board. Full details about the Rights Plan are contained in a Form 8-K filed by the Company with the U.S. Securities and Exchange Commission on May 7, 2013. On June 18, 2014 an amendment to the Preferred Shares Rights Agreement was filed appointing American Stock Transfer & Trust Company, LLC as successor to Illinois Stock Transfer Company. All original rights and provisions remain unchanged. On August 18, 2015 an amendment was filed to the Preferred Shares Rights Agreement changing the final expiration date to mean the fifth seventh ninth eleventh fourteenth

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	May 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	ITEM 5. OTHER INFORMATION There was no
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	May 31, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Unaudited Consolidated Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements of BAB, Inc. have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of the financial statements and accompanying notes are in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and treasury notes with banks and equity firms with original maturities of less than 90 days. The balance of bank accounts may, at times, exceed federally insured credit limits. The Company has not experienced any loss in such accounts and believes it is not subject to any significant credit risk related to cash at May 31, 2024.
Receivable [Policy Text Block]	Accounts Receivable and Notes Receivable The Company adopted FASB ASC Topic 326, Financial Instruments - Credit Losses, (“CECL”) with an adoption date of December 1, 2023. As a result, the Company changed its accounting policy for allowance for credit losses and the policy pursuant to CECL is disclosed below. The CECL reserve methodology requires companies to measure expected credit losses on financial instruments based on the total estimated amount to be collected over the lifetime of the instrument. Under the CECL model, reserves may be established against financial asset balances even if the risk of loss is remote or has not yet manifested itself. The Company records specific reserves against account balances of franchisees deemed at-risk when a potential loss is likely or imminent as a result of prolonged payment delinquency (greater than 90 days past due) and where notable credit deterioration has become evident. For financial assets that are not currently deemed at-risk, an allowance is recorded based on expected loss rates derived pursuant to the Company's CECL methodology that assesses four components - historical losses, current conditions, reasonable and supportable forecasts, and a reversion to history, if applicable. The Company considers its portfolio segments to be the following: Accounts Receivable (Franchise-Related Notes Receivable Leases Receivable Accounts Receivables (Vendor Related) Receivable balances by portfolio segment as of May 31, 2024 and November 30, 2023 are as follows: May 31, 2024 November 30, 2023 Accounts Receivable (Franchise Related) $ 65,632 $ 55,781 Accounts Receivable (Vendor Related) 21,750 28,895 Notes Receivable 53,923 30,873 Lease Receivable, Net of Unamortized Interest 35,364 38,306 176,669 153,855 Less: Allowance for Credit Losses (49,618 ) (28,873 ) Total Receivables 127,051 124,982 Less: Current Portion (97,624 ) (92,576 ) Long-Term Receivables $ 29,427 $ 32,406 The Company's internal credit quality indicators for all portfolio segments primarily consider delinquency. Current and collateralized lease receivables have an internal risk rating of Grade I. The Company does not currently have any uncollateralized lease receivables. Past due lease receivables would be assigned an internal risk rating of Grade II-IV, depending on significance of delinquency. For uncollateralized notes receivable, the Company also considers the status of the franchisee note holder and the term of the note. Notes receivable from current franchisees are considered to have an elevated risk of credit loss based on their common origination from past due franchise accounts receivable but have some indication of collectability given ongoing operations (Internal Grade II). Notes receivable due from payers who no longer have an operating franchise are considered to have a high likelihood of credit loss (Internal Grade III). That likelihood increases if the note is outstanding for longer than one year (Internal Grade IV). At May 31, 2024, all notes receivable were due from former franchisees and had an original term over one year. Changes in the allowance for credit losses during the six months ended May 31, 2024 were as follows: Accounts Receivable (Franchise Related) Accounts Receivable (Vendor Related) Notes Receivable Lease Receivable, Net Total Balance at November 30, 2023 $ - $ - $ 28,873 $ - $ 28,873 Adjustments to Allowance for Adoption of ASU 2016-13 - - - - - Write-offs - - - - - Recoveries - - (2,304 ) - (2,304 ) Provision for Credit Losses - - 23,049 - 23,049 Balance at May 31, 2024 $ - $ - $ 49,618 $ - $ 49,618 The Company considers a receivable past due 31 days after the payment due date. The delinquency status of receivables (other than accounts receivable) at May 31, 2024 was as follows: Current 0-30 days Past Due 30-60 days Past Due 60-90 days past due Over 90 days past due Total Notes Receivable $ 43,050 $ - $ - $ - $ 10,873 $ 53,923 Lease Receivable, Net of Unamortized Interest 35,364 - - - - 35,364 $ 78,414 $ - $ - $ - $ 10,873 $ 89,287 The fiscal year of origination of the Company's gross notes receivable and lease receivables by risk rating are as follows: 2024 2023 2022 2021 2020 Prior Total Risk rating Internal Grade I $ - $ - $ 35,364 $ - $ - $ - $ 35,364 Internal Grade II - - - - - - - Internal Grade III 24,094 18,956 - - - - 43,050 Internal Grade IV - - - - - 10,873 10,873 Notes and Lease Receivables, Net of Unamortized Interest $ 24,094 $ 18,956 $ 35,364 $ - $ - $ 10,873 $ 89,287
Lease Receivable [Policy Text Block]	Lease Receivable The Company leases restaurant equipment to a certain franchisee under a sales-type lease agreement. Under the terms of the agreement, title to the equipment passes to the customer once all lease payments have been made and a reasonable buy-out fee is paid. The Company retains title or a security interest in the equipment until such time. The sales and cost of sales are recognized at the inception of the lease. The profit or loss on the issuance of the lease is recorded in the period of commencement. The investment in sales-type leases consists of the sum of the minimum lease payments receivable less unearned interest income and, if applicable, estimated executory cost. Minimum lease payments are part of the lease agreement between the Company (as the lessor) and the franchisee (as the lessee). The discount rate implicit in the lease is used to calculate the present value of minimum lease payments. The minimum lease payments consist of the gross lease payments net of executory costs, if any. Unearned interest income is amortized to income over the lease term to produce a constant periodic rate of return on net investment in the lease. While revenue is recognized at the inception of the lease, the cash flow from the sales-type lease occurs over the course of the lease, which results in interest income and reduction of receivables.
Property, Plant and Equipment, Policy [Policy Text Block]	Property, Plant and Equipment Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 to 7 years for property and equipment and 10 years, or term of lease if less, for leasehold improvements. Maintenance and repairs are charged to expense as incurred. Expenditures that materially extend the useful lives of assets are capitalized.
Other Assets, Policy [Policy Text Block]	Other Assets Other assets include a minority investment in AHQ Systems, Inc. The shares were issued to BAB, Inc. as compensation for consulting services and are valued at $2,250. The value of the investment is immaterial and has not been adjusted to fair market value.
Advertising Cost [Policy Text Block]	Advertising and Promotion Costs The Company expenses advertising and promotion costs as incurred. All advertising and promotion costs were related to the Company’s franchise operations.
Lessee, Leases [Policy Text Block]	Lease Liabilities The company accounts for leases under ASC 842. Lease arrangements are determined at the inception of the contract. Operating leases are included in operating lease right-of-use (“ROU”) assets and other current and long-term operating lease liabilities on the consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities on the consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” which is intended to simplify various aspects related to accounting for income taxes. ASU 2023-09 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The amendments in ASU 2023-09 are effective for public business entities for fiscal years beginning after December 15, 2024, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company will adopt ASU 2023-09 for fiscal year ending November 30, 2026. Management does not believe that there are any recently issued and effective or not yet effective accounting pronouncements as of May 31, 2024 that would have or are expected to have any significant effect on the Company’s financial position, cash flows or income statement.
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]	Statement of Cash Flows The chart below shows the cash and restricted cash within the consolidated statements of cash flows as of May 31, 2024 and 2023 were as follows: May 31, 2024 May 31, 2023 Cash and cash equivalents $ 1,937,678 $ 1,682,226 Restricted cash 229,919 337,340 Total cash and restricted cash $ 2,167,597 $ 2,019,566

Note 2 - Summary of Significa_2

Note 2 - Summary of Significant Accounting Policies (Tables)	3 Months Ended
	May 31, 2024
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	May 31, 2024 November 30, 2023 Accounts Receivable (Franchise Related) $ 65,632 $ 55,781 Accounts Receivable (Vendor Related) 21,750 28,895 Notes Receivable 53,923 30,873 Lease Receivable, Net of Unamortized Interest 35,364 38,306 176,669 153,855 Less: Allowance for Credit Losses (49,618 ) (28,873 ) Total Receivables 127,051 124,982 Less: Current Portion (97,624 ) (92,576 ) Long-Term Receivables $ 29,427 $ 32,406
Accounts Receivable, Allowance for Credit Loss [Table Text Block]	Accounts Receivable (Franchise Related) Accounts Receivable (Vendor Related) Notes Receivable Lease Receivable, Net Total Balance at November 30, 2023 $ - $ - $ 28,873 $ - $ 28,873 Adjustments to Allowance for Adoption of ASU 2016-13 - - - - - Write-offs - - - - - Recoveries - - (2,304 ) - (2,304 ) Provision for Credit Losses - - 23,049 - 23,049 Balance at May 31, 2024 $ - $ - $ 49,618 $ - $ 49,618
Financing Receivable, Past Due [Table Text Block]	Current 0-30 days Past Due 30-60 days Past Due 60-90 days past due Over 90 days past due Total Notes Receivable $ 43,050 $ - $ - $ - $ 10,873 $ 53,923 Lease Receivable, Net of Unamortized Interest 35,364 - - - - 35,364 $ 78,414 $ - $ - $ - $ 10,873 $ 89,287
Financing Receivable Credit Quality Indicators [Table Text Block]	2024 2023 2022 2021 2020 Prior Total Risk rating Internal Grade I $ - $ - $ 35,364 $ - $ - $ - $ 35,364 Internal Grade II - - - - - - - Internal Grade III 24,094 18,956 - - - - 43,050 Internal Grade IV - - - - - 10,873 10,873 Notes and Lease Receivables, Net of Unamortized Interest $ 24,094 $ 18,956 $ 35,364 $ - $ - $ 10,873 $ 89,287
Cash, Cash Equivalents, and Restricted Cash, Cash Flow Statement Reconciliation [Table Text Block]	May 31, 2024 May 31, 2023 Cash and cash equivalents $ 1,937,678 $ 1,682,226 Restricted cash 229,919 337,340 Total cash and restricted cash $ 2,167,597 $ 2,019,566

Note 3 - Revenue Recognition (T

Note 3 - Revenue Recognition (Tables)	3 Months Ended
	May 31, 2024
Notes Tables
Disaggregation of Revenue [Table Text Block]	For three months ended May 31, 2024 For three months ended May 31, 2023 For six months ended May 31, 2024 For six months ended May 31, 2023 Revenue recognized at a point in time Sign Shop revenue $ - $ 2,022 $ 1,379 $ 2,179 Settlement revenue 1,000 6,000 26,610 12,500 Total revenue at a point in time 1,000 8,022 27,989 14,679 Revenue recognized over time Royalty revenue 513,474 494,933 973,163 937,541 Franchise fees 9,215 7,054 19,461 11,401 License fees 5,978 5,443 11,956 9,589 Gift card revenue 313 1,796 3,159 2,100 Nontraditional revenue 46,222 60,413 116,997 109,626 Marketing fund revenue 306,636 286,739 566,047 525,057 Total revenue over time 881,838 856,378 1,690,783 1,595,314 Grand total $ 882,838 $ 864,400 $ 1,718,772 $ 1,609,993
Contract With Customer Asset and Liability, Subject to Change [Table Text Block]	May 31, 2024 November 30, 2023 Liabilities Contract liabilities - current $ 481,823 $ 458,162 Contract liabilities - long-term 157,743 162,026 Total Contract Liabilities $ 639,566 $ 620,188
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]	May 31, 2024 November 30, 2023 Contracts at beginning of period $ 620,188 $ 692,360 Revenue Recognized during period (724,651 ) (1,685,740 ) Additions during period 744,029 1,613,568 Contracts at end of period $ 639,566 $ 620,188
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]	2024 $ 15,328 (a) 2025 26,005 2026 25,780 2027 19,133 2028 18,600 Thereafter 77,063 Total $ 181,909

Note 4 - Units Open and Under_2

Note 4 - Units Open and Under Development (Tables)	3 Months Ended
	May 31, 2024
Notes Tables
Schedule of Franchisor Disclosure [Table Text Block]	May 31, 2024 May 31, 2023 Stores open: Franchisee-owned stores 64 67 Licensed Units 4 3 68 70 Unopened stores with Franchise Agreements 4 4 Total operating units and units with Franchise Agreements 72 74

Note 5 - Earnings Per Share (Ta

Note 5 - Earnings Per Share (Tables)	3 Months Ended
	May 31, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	For the three months ended: For the six months ended: May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 Numerator: Net income available to common shareholders $ 145,685 $ 126,528 $ 244,190 $ 161,848 Denominator: Weighted average outstanding shares Basic and diluted common stock 7,263,508 7,263,508 7,263,508 7,263,508 Earnings per Share - Basic $ 0.02 $ 0.02 $ 0.03 $ 0.02

Note 7 - Lease Receivable (Tabl

Note 7 - Lease Receivable (Tables)	3 Months Ended
	May 31, 2024
Notes Tables
Sales-Type and Direct Financing Leases, Payment to be Received, Maturity [Table Text Block]	Undiscounted Rent Payments Year Ending November 30: 2024 $ 3,142 2025 6,283 2026 6,404 2027 6,283 2028 6,283 thereafter 7,942 Total Undiscounted Lease Payments 36,337 Unamortized interest income (973 ) Lease receivable, net $ 35,364 Short-term lease receivable $ 5,937 Long-term lease receivable 29,427 Total lease receivable $ 35,364

Note 8 - Lease Commitments (Tab

Note 8 - Lease Commitments (Tables)	3 Months Ended
	May 31, 2024
Notes Tables
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	Undiscounted Rent Payments Year Ending November 30: 2024 $ 45,546 2025 77,737 2026 80,837 2027 84,024 2028 96,163 Thereafter 136,725 Total Undiscounted Rent Payments $ 521,032 Present Value Discount (113,895 ) Present Value $ 407,137 Short-term lease liability $ 44,066 Long-term lease liability 363,071 Total Operating Lease Liability $ 407,137

Note 1 - Nature of Operations (

Note 1 - Nature of Operations (Details Textual)	May 31, 2024	May 31, 2023
Number of Wholly Owned Subsidiaries	3
Number of Stores	72	74
Number of States in which Entity Operates	20
Franchised Units [Member]
Number of Stores	64	67
Licensed Units [Member]
Number of Stores	4	3
Units Under Development [Member]
Number of Stores	4

Note 2 - Summary of Significa_3

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	May 31, 2024	Nov. 30, 2023
Financing Receivable, Allowance for Credit Loss	$ 49,618	$ 28,873
Sales-type Lease, Interest Income, Lease Receivable	973
Investment Owned, Fair Value	$ 2,250
Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life	10 years
Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member]
Property, Plant and Equipment, Useful Life	7 years

Note 2 - Summary of Significa_4

Note 2 - Summary of Significant Accounting Policies - Summary of Portfolio Segments for Receivables (Details) - USD ($)	May 31, 2024	Nov. 30, 2023
Notes Receivable	$ 53,923	$ 30,873
Lease Receivable, Net of Unamortized Interest	35,364	38,306
Total Receivables, Before Allowance for Credit Losses	176,669	153,855
Less: Allowance for Credit Losses	(49,618)	(28,873)
Total Receivables	127,051	124,982
Less: Current Portion	(97,624)	(92,576)
Long-Term Receivables	29,427	32,406
Franchise [Member]
Accounts Receivable	65,632	55,781
Vendor Related [Member]
Accounts Receivable	$ 21,750	$ 28,895

Note 2 - Summary of Significa_5

Note 2 - Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($)	6 Months Ended
	May 31, 2024	May 31, 2023
Balance, Notes Receivable	$ 28,873
Balance, Lease Receivable	0
Balance	28,873
Write-offs, Notes Receivable	0
Write-offs, Lease Receivable	0
Write-offs	0
Recoveries, Notes Receivable	(2,304)
Recoveries, Lease Receivable	0
Recoveries	(2,304)
Provision for Credit Losses, Accounts Receivable, Franchise Related	20,745	$ 0
Provision for Credit Losses, Notes Receivable	23,049
Provision for Credit Losses, Lease Receivable	0
Provision for Credit Losses	23,049
Balance, Notes Receivable	49,618
Balance, Lease Receivable	0
Balance	49,618
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, Notes Receivable	0
Balance, Lease Receivable	0
Balance	0
Franchise [Member]
Balance, Accounts Receivable, Franchise Related	0
Write-offs, Accounts Receivable, Franchise Related	0
Recoveries, Accounts Receivable, Franchise Related	0
Provision for Credit Losses, Accounts Receivable, Franchise Related	0
Balance, Accounts Receivable, Franchise Related	0
Franchise [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, Accounts Receivable, Franchise Related	0
Vendor Related [Member]
Balance, Accounts Receivable, Franchise Related	0
Write-offs, Accounts Receivable, Franchise Related	0
Recoveries, Accounts Receivable, Franchise Related	0
Provision for Credit Losses, Accounts Receivable, Franchise Related	0
Balance, Accounts Receivable, Franchise Related	0
Vendor Related [Member] | Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Balance, Accounts Receivable, Franchise Related	$ 0

Note 2 - Summary of Significa_6

Note 2 - Summary of Significant Accounting Policies - Summary of Past Due Financing Receivables (Details) - USD ($)	May 31, 2024	Nov. 30, 2023
Notes Receivable	$ 53,923	$ 30,873
Lease Receivable, Net of Uamortized Interest	35,364
Notes and Lease Receivables, Net of Unamortized Interest	89,287
Financial Asset, Not Past Due [Member]
Notes Receivable	43,050
Lease Receivable, Net of Uamortized Interest	35,364
Notes and Lease Receivables, Net of Unamortized Interest	78,414
Financial Asset, 1 to 29 Days Past Due [Member]
Notes Receivable	0
Lease Receivable, Net of Uamortized Interest	0
Notes and Lease Receivables, Net of Unamortized Interest	0
Financial Asset, 30 to 59 Days Past Due [Member]
Notes Receivable	0
Lease Receivable, Net of Uamortized Interest	0
Notes and Lease Receivables, Net of Unamortized Interest	0
Financial Asset, 60 to 89 Days Past Due [Member]
Notes Receivable	0
Lease Receivable, Net of Uamortized Interest	0
Notes and Lease Receivables, Net of Unamortized Interest	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Notes Receivable	10,873
Lease Receivable, Net of Uamortized Interest	0
Notes and Lease Receivables, Net of Unamortized Interest	$ 10,873

Note 2 - Summary of Significa_7

Note 2 - Summary of Significant Accounting Policies - Schedule of Receivables by Year and Risk Rating (Details)	May 31, 2024 USD ($)
Internal Grade, year one	$ 24,094
Internal Grade, year two	18,956
Internal Grade, year three	35,364
Internal Grade, year four	0
Internal Grade, year five	0
Internal Grade, prior	10,873
Internal Grade, total	89,287
Internal Grade 1 [Member]
Internal Grade, year one	0
Internal Grade, year two	0
Internal Grade, year three	35,364
Internal Grade, year four	0
Internal Grade, year five	0
Internal Grade, prior	0
Internal Grade, total	35,364
Internal Grade 2 [Member]
Internal Grade, year one	0
Internal Grade, year two	0
Internal Grade, year three	0
Internal Grade, year four	0
Internal Grade, year five	0
Internal Grade, prior	0
Internal Grade, total	0
Internal Grade 3 [Member]
Internal Grade, year one	24,094
Internal Grade, year two	18,956
Internal Grade, year three	0
Internal Grade, year four	0
Internal Grade, year five	0
Internal Grade, prior	0
Internal Grade, total	43,050
Internal Grade 4 [Member]
Internal Grade, year one	0
Internal Grade, year two	0
Internal Grade, year three	0
Internal Grade, year four	0
Internal Grade, year five	0
Internal Grade, prior	10,873
Internal Grade, total	$ 10,873

Note 2 - Summary of Significa_8

Note 2 - Summary of Significant Accounting Policies - Cash Flow Statement Reconciliation (Details) - USD ($)	May 31, 2024	Nov. 30, 2023	May 31, 2023	Nov. 30, 2022
Cash and cash equivalents	$ 1,937,678	$ 1,888,728	$ 1,682,226
Restricted cash	229,919		337,340
Total cash and restricted cash	$ 2,167,597	$ 2,072,672	$ 2,019,566	$ 1,902,661

Note 3 - Revenue Recognition (D

Note 3 - Revenue Recognition (Details Textual)	3 Months Ended
	May 31, 2024
Initial Franchise Term	10 years
Royalty Fees From Franchises Percentage	5%

Note 3 - Revenue Recognition -

Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Revenues	$ 882,838	$ 864,400	$ 1,718,772	$ 1,609,993
Transferred at Point in Time [Member]
Revenues	1,000	8,022	27,989	14,679
Transferred over Time [Member]
Revenues	881,838	856,378	1,690,783	1,595,314
Sign Shop [Member] | Transferred at Point in Time [Member]
Revenues	0	2,022	1,379	2,179
Structured Settlement Annuity [Member] | Transferred at Point in Time [Member]
Revenues	1,000	6,000	26,610	12,500
Royalty [Member]
Revenues	513,474	494,933	973,163	937,541
Royalty [Member] | Transferred over Time [Member]
Revenues	513,474	494,933	973,163	937,541
Franchise [Member]
Revenues	9,215	7,054	19,461	11,401
Franchise [Member] | Transferred over Time [Member]
Revenues	9,215	7,054	19,461	11,401
License [Member] | Transferred over Time [Member]
Revenues	5,978	5,443	11,956	9,589
Gift Card [Member] | Transferred over Time [Member]
Revenues	313	1,796	3,159	2,100
Non-traditional Revenue [Member] | Transferred over Time [Member]
Revenues	46,222	60,413	116,997	109,626
Marketing Fund [Member]
Revenues	306,636	286,739	566,047	525,057
Marketing Fund [Member] | Transferred over Time [Member]
Revenues	$ 306,636	$ 286,739	$ 566,047	$ 525,057

Note 3 - Revenue Recognition _2

Note 3 - Revenue Recognition - Contract Balances Subject to ASC 606 (Details) - USD ($)	May 31, 2024	Nov. 30, 2023
Contract liabilities - long-term	$ 157,743	$ 162,026
Total Contract Liabilities	639,566	620,188
Contract Liabilities, Current and Accrued Expenses and Other Current Liabilities [Member]
Contract liabilities - current	$ 481,823	$ 458,162

Note 3 - Revenue Recognition _3

Note 3 - Revenue Recognition - Changes in Contract Balances (Details) - USD ($)	6 Months Ended	12 Months Ended
	May 31, 2024	Nov. 30, 2023
Contracts	$ 620,188	$ 692,360
Revenue Recognized during period	(724,651)	(1,685,740)
Additions during period	744,029	1,613,568
Contracts	$ 639,566	$ 620,188

Note 3 - Revenue Recognition _4

Note 3 - Revenue Recognition - Remaining Performance Obligations (Details)	Nov. 30, 2023 USD ($)
Remaining Performance Obligation	$ 181,909

Note 3 - Revenue Recognition _5

Note 3 - Revenue Recognition - Remaining Performance Obligations 2 (Details)	Nov. 30, 2023 USD ($)
Remaining Performance Obligation	$ 181,909
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	9 months
Remaining Performance Obligation	$ 15,328	[1]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Remaining Performance Obligation	$ 26,005
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Remaining Performance Obligation	$ 25,780
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Remaining Performance Obligation	$ 19,133
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Remaining Performance Obligation	$ 18,600
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-06-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Remaining Performance Obligation	$ 77,063
[1]represents the estimate for the remainder of 2024

Note 4 - Units Open and Under_3

Note 4 - Units Open and Under Development - Operating Units (Details)	May 31, 2024	May 31, 2023
Number of Stores	72	74
Franchised Units [Member]
Number of Stores	64	67
Licensed Units [Member]
Number of Stores	4	3
Total Franchised Owned and Licensed Units [Member]
Number of Stores	68	70
Unopened Store [Member]
Number of Stores	4	4

Note 5 - Earnings Per Share - C

Note 5 - Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Net income available to common stockholders	$ 145,685	$ 126,528	$ 244,190	$ 161,848
Weighted average shares outstanding - Basic and diluted (in shares)	7,263,508	7,263,508	7,263,508	7,263,508
Net Income per share - Basic and Diluted (in dollars per share)	$ 0.02	$ 0.02	$ 0.03	$ 0.02

Note 6 - Goodwill and Other I_2

Note 6 - Goodwill and Other Intangible Assets (Details Textual) $ in Thousands	3 Months Ended
	May 31, 2024 USD ($)
Goodwill, Impairment Loss	$ 0

Note 7 - Lease Receivable (Deta

Note 7 - Lease Receivable (Details Textual) - USD ($)		6 Months Ended
	Jun. 01, 2022	May 31, 2024
Lessor, Sales Type Lease, Weekly Payments	$ 121
Lessor, Sales-type Lease, Optional Buy-out Payment	$ 4,800
Sales-type Lease, Residual Value of Leased Asset		$ 4,800
Lease Income, Total		$ 200
Lessor, Sales Type Lease, Applicable Discount Rate		1.25%

Note 7 - Lease Receivable - Fut

Note 7 - Lease Receivable - Future Minimum Lease Payments Receivable (Details) - USD ($)	May 31, 2024	Nov. 30, 2023
2024	$ 3,142
2025	6,283
2026	6,404
2027	6,283
2028	6,283
thereafter	7,942
Total Undiscounted Lease Payments	36,337
Unamortized interest income	(973)
Lease receivable, net	35,364
Lease receivable	5,937	$ 5,900
Long-term lease receivable	29,427	$ 32,406
Total lease receivable	$ 35,364

Note 8 - Lease Commitments (Det

Note 8 - Lease Commitments (Details Textual) - USD ($)	May 31, 2024	Feb. 15, 2024
Lessee, Operating Lease, Renewal Term		5 years
Tenant Allowance		$ 158,940
Lessee, Operating Lease, Remaining Lease Term	70 months
Lessee, Operating Lease, Discount Rate	8.50%

Note 8 - Lease Commitments - Gr

Note 8 - Lease Commitments - Gross Future Minimum Annual Rental Commitments (Details) - USD ($)	May 31, 2024	Nov. 30, 2023
2024	$ 45,546
2025	77,737
2026	80,837
2027	84,024
2028	96,163
Thereafter	136,725
Total Undiscounted Rent Payments	521,032
Present Value Discount	(113,895)
Present Value	407,137
Short-term lease liability	44,066	$ 39,818
Long-term lease liability	363,071	$ 0
Total Operating Lease Liability	$ 407,137

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Income Tax Expense (Benefit)	$ 57,500	$ 50,000	$ 96,500	$ 64,200
Effective Income Tax Rate Reconciliation, Percent	28.30%	28.30%	28.30%	28.40%

Note 10 - Stockholder's Equity

Note 10 - Stockholder's Equity (Details Textual) - $ / shares

3 Months Ended

6 Months Ended

Mar. 06, 2024

Dec. 11, 2023

Sep. 12, 2023

Jun. 06, 2023

Apr. 04, 2023

Mar. 13, 2023

Dec. 07, 2022

Mar. 04, 2021

Feb. 22, 2019

May 22, 2017

Aug. 18, 2015

May 06, 2013

May 31, 2024

May 31, 2023

May 31, 2024

May 31, 2023

Common Stock, Dividends, Per Share, Declared

$ 0.01

$ 0.02

$ 0.01

$ 0.01

$ 0.03

$ 0.03

Preferred Stock Dividends Number of Rights Declared

1

Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that must be Acquired to Make Rights Exercisable

15%

Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that Must be Acquired to Make Rights Exercisable, Institutional Investors

20%

Right to Purchase Series A Preferred Stock [Member]

Class of Warrant or Right, Number of Securities Called by Each Warrant or Right

0.01

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 0.9

Class of Warrant or Right, Term

14 years

11 years

9 years

7 years

5 years

Quarterly Dividend [Member]

Common Stock, Dividends, Per Share, Declared

$ 0.01

$ 0.01

$ 0.01

$ 0.01