Christmas Decor Franchise Information

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ABOUT CHRISTMAS DECOR

  • How much it costs
  • About Christmas Decor
  • Why Buy a Christmas Decor?
  • What Sets Christmas Decor Apart From Competitors?
  • Why Invest In This Category?
  • What Value Does Christmas Decor Offer Experienced Franchisees?
  • What Value Does Christmas Decor Offer Experienced Franchisees?
  • Why You?
  • Why You?
  • Why Franchisees Love the Brand
$23,550 - $110,250
Start-Up Cost
$11,400 - $69,900
Initial Franchise Fee

Founded in 1986 by Blake Smith, Christmas Decor has become the leading holiday decorating brand in the U.S. and Canada. Originally created as an off-season supplement to the landscaping business, the Texas-based franchise now brings holiday cheer to over 300 communities across North America, ultimately creating jobs for 3,000-plus seasonal workers that might otherwise be unemployed. Backed by a strong business model and double-digit revenue increase year-over-year for the last 11 years, Christmas Decor is looking to grow in markets across the U.S. and Canada.

 

 

For landscapers and outdoor business owners — including pest control companies, irrigation companies, roofing companies and tree care companies — there’s no better way to offset fixed overhead costs, maintain key employees year-round and generate new income streams than investing in a Christmas Decor franchise.

According to the brand’s 2023 FDD and Item 19, the average gross revenue for Christmas Decor franchise units in 2023 was $399,993 with the highest gross revenue reported to be $5,809,076, bringing them plenty of Christmas cheer. The added revenue not only gives outdoor business owners the capital they need to invest in their core businesses, but it also allows them to build new crossover clients at the same time.

*Refer to the Franchise Disclosure Document for additional financial information in the Item 19.

Ask any Christmas Decor client, and you’ll find out how much they value the brand’s high level of service, professionalism and safe, reliable products that function all season long. For busy homeowners, Christmas Decor’s all-inclusive service — including installation, maintenance, support and a personalized light design — is well worth the investment. No risk of Dad falling off the ladder, no dread of taking it down in January and every chance the neighbors will be impressed. 

But the biggest thing that sets the holiday decorating brand apart is the way it makes people feel. Christmas Decor customers remember the excitement of seeing their homes all lit up and perfectly decorated for the holidays, with a stunning light design customized especially for them. And once they experience that feeling, it becomes an important part of their annual holiday tradition, something the whole family looks forward to every year.

The pandemic  fundamentally changed the way we view the concept of home, and for anyone in the home services industry, that’s good news. As people spend more time at home, they are also investing more money in their homes, and that includes their outdoor lighting displays.

In 2020, Christmas Decor experienced record growth, with sales numbers up 20% from the previous year as homeowners rushed to bring some holiday joy to their homes and smiles to their neighbors’ faces. With an astonishing retention rate of 80%, the brand has only seen that momentum continue.

 

 

Most franchisee investors who want to diversify their portfolio by taking advantage of other The Decor Group brands within the parent company have the opportunity to diversify revenue through sister brands Nite Time Decor, PermaLites and Decor Smart as part of the franchise package, allowing them to opearte a year-round business. The world’s leading provider of low-voltage landscape lighting products, Nite Time Decor provides contractors with tools, training, support and products, allowing them to design, install and maintain lighting systems at a professional level. The brand has also recently introduced a permanent light product line that features roofline lighting, currently seeing high demand from commercial clients.

Most franchisee investors who want to diversify their portfolio by taking advantage of other The Decor Group brands within the parent company have the opportunity to diversify revenue through sister brands Nite Time Decor, PermaLites and Decor Smart as part of the franchise package, allowing them to operate a year-round business. The world’s leading provider of low-voltage landscape lighting products, Nite Time Decor provides contractors with tools, training, support and products, allowing them to design, install and maintain lighting systems at a professional level. The brand has also recently introduced a permanent light product line that features roofline lighting, currently seeing high demand from commercial clients. 

  • You want a way to make great money in the off-season.

  • You want a business that doesn’t demand your attention year round.

  • You already have a core group of customers in place.

  • You value the training and support Christmas Decor provides.

  • You want to align with a company and brand that has more than 20 years of proven success. 

  • You want the opportunity to diversify and grow by having the option to invest in additional franchises within The Decor Group’s portfolio.

  • You want to brighten the holiday season for people in your community and become an essential part of their holiday tradition.

Are you ready to own your own Christmas Decor?

  • You want a way to make great money in the off-season.

  • You want a business that doesn’t demand your attention year round.

  • You already have a core group of customers in place.

  • You value the training and support Christmas Decor provides.

  • You want to align with a company and brand that has more than 20 years of proven success. 

  • You want the opportunity to diversify and grow by having the option to invest in additional franchises within The Decor Group’s portfolio.

  • You want to brighten the holiday season for people in your community and become an essential part of their holiday tradition.

Are you ready to own your own Christmas Decor?

As the owner of five Halal Guys, Masroor Fatany is a well-established operator who wanted to diversify his expanding Houston fast-food empire. As the first franchisee of Layne’s Chicken Fingers, he is bringing the Aggie phenomenon to Katy, Texas. It will be the first of five locations Fatany has planned for the Houston metro area.

“Franchising always made sense to me because growing up I saw the struggle with starting out as a new brand,” he said. “With a franchise, you have the blueprint, the brand and the customer recognition. That just makes things a lot easier for a midsize franchisee like me.”

When he began researching a bit deeper, Fatany became impressed with not only the product and brand recognition, but the organization behind Layne’s. As the brand’s first franchisee, he didn’t do a traditional Discovery Day but spent time with Layne’s executive team one-on-one, asking them tough questions and really getting to know them as people. 

“I’ve been looking for another concept for some time, but I wanted to find a brand that I really enjoyed,” Fatany said. “I didn’t want to open just another Popeye’s. Brands like that are very established, and I wanted to make my own impact as an operator.”

Fatany also liked Layne’s business fundamentals. “The menu was simple. That was important. And then there was the connection to my alma mater in College Station, so I knew Layne’s would have that built-in following,” Fatany said. “There was a customer who was already looking for this product.”

Executive Q&A

Executive Q&A with Christmas Decor

1851 Franchise: Can you start off by telling us about the history of Christmas Decor?

Brandon Stephens: Our founder, Blake Smith, started Christmas Decor in the mid ‘80s. He had started a landscape company when he was in high school. It evolved over time and grew to where he had employees, trucks, trailers, facilities — but he didn’t have anything to do in the wintertime when it got cold. So he started looking at different streams of revenue, and one of the things that clients really wanted was somebody to put up their Christmas lights. So he started doing that and, over the next few years, really worked out the systems and the scalability of the business. Within five years, Christmas decorating became the most profitable part of his company. It started off as a way to fill the off-season, but it ended up being a huge benefit to his core business. 

When his landscaping competitors started, they would take off in the wintertime, but he was out there building relationships and servicing clients during the coldest part of the year. That ended up growing his landscape company exponentially. When competitors were laying people off, he was hiring as many employees as he could find, and he was getting the best employees in the marketplace. So what started off as an add-on to offset his landscape business actually helped his business grow. In five years, he had grown the business about five-fold. Christmas business only accounted for about 20% of the gross revenue, but it was half of the profit, so it was the most profitable work that he did.

In 1996, Christmas Decor started franchising. In the first year, they sold seven franchises. In the second year, they sold 70. From there, it was about managing the growth and scaling and bolstering the systems and the support to keep it growing. After doing that for a few years, they got rid of that landscape company and focused year-round on Christmas Decor. Since then, we've added in some additional services, like Nite Time Decor low-voltage landscape lighting and a permanent product line called PermaLights. And that’s how we’ve evolved over the years. 

1851: What void does Christmas Decor fill? What inspired you to start?

Stephens: From an operational standpoint, we filled our off-season. From a bigger picture standpoint, this is an elective service. Landscaping, for example, is a very competitive business. Christmas decorating is a little bit harder to get into, and you need a lot of things in place. So it’s interesting (as a franchisee) to offset a business that’s very competitive and very bid-driven, with more of a white glove service. This is a service that you're buying because you want it and almost solely because you want it. It can also become a very frustrating experience if it's not handled properly. Nobody likes to have bulbs out or trip over lights. If you're not in the industry, you don't know what you need. So, for contractors like landscapers or pest control (who want to own a Christmas Decor location), we're able to provide them with an avenue to these affluent clients that have elective discretionary income. 

What generally happens is they get into that house to sell a Christmas service, and then they can turn around and cross-sell pest control services or landscaping. They create a very economically resilient client base. Lawn maintenance has gotten pretty broad, so you don't have to be a real wealthy person to buy landscape services. But our average residential installation at Christmas is just shy of $1,800. When you get in front of those property owners who are willing to spend that kind of money, it's pretty fertile ground to sell additional services. 

1851: What inspired you to start with Christmas Decor?

Stephens: I’ve been with Christmas Decor for about 19 years, and I think the thing that initially attracted me was just how interesting the business was. I had just moved to Lubbock, Texas, didn’t really know anybody and I met Blake. He was very passionate about what he was doing. I just didn't feel like the guy was going to fail. From an altruistic standpoint, the work we were doing was good work. We were offering a service that people wanted, were willing to pay good money for and it generally put a smile on their face. We get very few complaints, and there’s a joy to it.

The other thing is just the creation of jobs. The alternative is to probably lay people off, or for these businesses just to eat into their profits, which creates instability. So when you're keeping people from being laid off, there’s almost a higher calling, as far as the type of work that we were doing.

1851: What are some of Christmas Decor’s most important milestones over the past few years?

Stephens: We just saw our 25th anniversary. When you stay in business that long, you don't have to spend a lot of time building your credibility. 

About six years ago, we made an acquisition of a company called Barcana, which is a three-generation company that originally specialized in interior Christmas trees. Over the years, they have evolved to where they offer a ton of specialty products. So on the Christmas Decor side, we make our living by putting lights on houses. Barcana now does various things like interior trees and toy soldiers, bigger commercial and low-labor pieces. It was an iconic brand in our industry, and we took it and revitalized it. Up until that point, our business was about 80% residential and 20% commercial, and when we made the Barcana acquisition, it really changed our offering and opened up a lot of doors as to the types of properties that we serve. Now, commercial represents about 40% of our overall business. 

The third biggest recent milestone was our corporate office move to Dallas-Fort Worth. We operated in Lubbock for 19 years. We feel strongly in the franchising business that we need to have good contact with our franchisees. So it may sound small, but we always had to go through Dallas-Fort Worth to get to Lubbock. From the standpoint of convenience and flying, it was harder to get to. Once we moved to a big city like Dallas-Fort Worth, we had access to a bigger labor pool and just more regular contact. We had more people visit our Dallas office in the first year than we had visit Lubbock in 15 years. So from an accessibility standpoint, that was a huge move for us. 

1851: What is Christmas Decor doing well right now? What are your brand’s differentiators? 

Stephens: We’re one of the bigger players in our industry, so it’s almost like we have a say in the trends and we have a front-row seat to what people are looking for. We serviced about 40,000 clients last year. When you have access to that number of people and you can do surveys and gain insights, you really learn a lot about what people want. Because of the size of our footprint, we have a really good finger on the pulse of what's going on out there in the Christmas world. And because of that, we carry some weight with factories and within the industry as a whole. 

We have gotten really good at the supply side of things. Right now, there's an international freight crisis going on. To get a normal freight container in from overseas is about $6,500. We’ve seen that go up to about $30,000 per container. That has a significant impact on sales. So because we were able to get our stuff in nice and early, we were partly able to avoid that.

From a franchisee demand standpoint, we've developed relationships with our franchisees so they give us regular feedback as to what they need. So we’re able to maneuver the changes in the industry pretty well. 

1851: Why is now the time to buy a Christmas Decor franchise?

Stephens: Our industry is growing, and we’ve been doing this for 25 years. Without the franchisor’s help, you can probably figure out a way to make a little bit of money on your own. But we help you do it faster, get you up and running in a very short period of time and condense that learning curve that it would take to work out all the kinks and figure out the do's and don'ts. We have a network of people to access that includes our employees at the corporate office, as well as our other franchisees.

It's all about scaling quickly. Our royalty rate is 5%, and our ad fund is 1%, so that’s 6%. If I help someone build a half-million-dollar company, they’re paying us $30,000 toward a team of marketing experts, tenured franchise support reps and product inventory expertise. We have a pricing model that's pulled from data insights from all these franchises all over the United States. 

It's a combination of the experience, the systems, the network and just the general knowledge that comes from the tenure of the staff or somebody that's been in the business for 25 years. 

And then, just in general, the industry is growing. More and more, people are looking for ways to get some of their life back, and they're hiring out to do more things. With the pandemic, people are spending a lot more time at home. They're not spending money on vacation, so there's more disposable money floating around. We've had some really strong growth, and we're tracking about 95% ahead of last year right now.

1851: What are Christmas Decor’s growth goals and plans to reach those goals?

Stephens: We would love to hit 500 franchises by 2025. We're being pretty careful about how we manage that, but we have a lot of markets with territory available. We’d also like to get to $100 million in sales within the next four to five years. 

We have a strategic plan. We’ve spent a lot of time on the Barcana acquisition, and then we made the move to Dallas-Fort Worth. So we’ve had our hands full over the last five years. Seven to eight years before that, we were really focused on infrastructure — systems and support — to make sure we were taking good care of our franchisees. We weren't really focused on adding new units as much as we wanted to help franchise revenues grow. The growth plan is just to refocus on some of those things that made us successful and then add new franchisees.

For more information on franchising with Christmas Decor, visit https://www.christmasdecor.net/franchise/

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