'Tis the Season to Discover Christmas Franchise Opportunities
Christmas is a peak time for consumer spending, where people are eager to spend on everything from gifts and food to services and experiences that make the season magical.
A Christmas franchise provides a turnkey business opportunity that takes full advantage of this seasonal excitement. Whether it’s a family-friendly attraction like a light display or Santa’s workshop, or a pop-up store offering holiday-themed products, Christmas is indeed the season of giving: joy to the customers and profits to the franchise owners.
This blog post will explore Christmas franchising and introduce known Christmas franchise brands using information from their Franchise Disclosure Documents (“FDD”).
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Christmas: The Most Expensive Holiday of the Year
According to Fortunly, in 2023, holiday retail sales surpassed the $1 trillion mark—yes, that’s correct; a staggering 12 zeros. This means that on average, US households spent $1,536 per household covering gift purchases, festive decorations, and special holiday experiences. This places Christmas as the most expensive holiday of the year.
It is reported that part of the significant growth in Christmas sales is attributed to e-commerce, which now represents over 28% of total holiday retail revenue. Online platforms have undoubtedly made holiday shopping more accessible and convenient than ever before. Apart from customers flocking the stores, e-commerce allows customers to also flock to websites and mobile apps.
Some Items to Consider in the FDD
As mentioned, this blog post will introduce known Christmas franchise brands. For each brand that will be presented below, the following will be provided:
Franchise Offered
A brand’s franchise offering is found in Item 1 of the FDD. This is a description of the business model, the products and/or services offered by the brand, and may include its operating model. Knowing the franchise offering is essential to understand what you are investing in, whether it’s a product-based franchise or a service-oriented business.
Investment Needed
The investment needed is found in Item 7 of the FDD and this section provides a breakdown on the financial requirements to launch and operate your franchise. This includes initial costs like equipment, supplies, real estate, and working capital for the first few months. Knowing the investment needed ensures that franchisees can accurately assess the total financial commitment, compare options across brands, and plan for financing or budgeting as needed.
Initial Franchise Fee
The initial franchise fee is found in Item 5 of the FDD. This tells you the upfront cost you need to pay to join a brand’s franchise system. This fee typically covers essential benefits such as access to the brand’s name, initial training, and the operational systems needed to start the business. At times, franchises will offer certain discounts on initial franchise fees to certain set of groups and that is also found typically under Item 5 of a brand’s FDD.
Royalty Fee
The royalty fee collected by franchisors is found in Item 6 of the FDD and defines the ongoing percentage of gross revenue you will pay to the franchisor in exchange for continued support and brand maintenance. This fee supports critical services like marketing, operational guidance, and technological updates that keep the franchise competitive and efficient. Understanding the royalty fee structure is essential for evaluating profitability, as it directly impacts the long-term financial performance of the business.
Franchise Locations in the US
Item 20 of the FDD presents a look into the number of franchise outlets of a brand in the US with a per state and per year breakdown of the entries and exits into the brand’s franchise system. Knowing the franchise locations of a brand in the US is vital to assess the brand’s market presence, stability, and potential for growth, and to have a glimpse of the brand’s success per state and per year.
Franchises Lighting Up The Season
Christmas captivates families with twinkling spectacles thanks to businesses that transform spaces like parks, shopping centers, or even entire neighborhoods into enchanting wonderlands illuminated by millions of lights, creating memorable experiences for attendees.
Below are the franchises that help light up the season.
Outdoor Lighting Perspectives
Franchise Offered
Formerly known as Lightscapes, Outdoor Lighting Perspectives offers the opportunity to operate an outdoor lighting design and installation service and sales business. The business involves providing outdoor lighting design, automated lighting control equipment, installation services, lighting sales, and seasonal, holiday and event lighting sales and installation services to residential and commercial customers.
Investment Needed
According to Item 7 of its most recent FDD, the investment needed to put up your own Outdoor Lighting Perspectives franchise is estimated to be around $127,000 to $214,200.
Initial Franchise Fee
Included in the estimated investment amount above is the $59,500 initial franchise fee payable to Outdoor Lighting Perspectives Franchisor, LLC upon signing of the Franchise Agreement. This amount is non-refundable.
Additional Population Fee
If Outdoor Lighting Perspectives permits you to purchase additional geographic areas for a specific Territory so that your Territory exceeds 700,000 people, then an Additional Population Fee in an amount equal to the population in your Territory in excess of 700,000 multiplied by $0.071 will be collected. This amount is earned upon receipt and not refundable.
To illustrate: if you are permitted to purchase additional geographic areas for your territory so that the individual Territory will then consist of a total population of 750,000 people, the total amount of initial franchise fee that you will pay will be $63,050 computed as follows:
Initial Franchise Fee = $56,500
Plus: Additional Population Fee (50,000 x 0.071) = $3,550
Total Initial Franchise Fee = $63,050
Add-On Discount for Existing Home Services Contracting Business
A $10,000 discount on initial franchisee fee may be given to a franchisee who has an existing home services contracting businesses, provided:
- The franchisee has an existing business offering home automation services or landscape, irrigation, or lawn service business or other related home services contracting business
- The existing business has continuously operated for at least the last 2 years
- The existing business has generated at least $500,000 in the last fiscal year
- The existing business agrees to diversify its business by adding an Outdoor Lighting Perspectives franchise in an affiliated but separate legal entity
Discount for Employee of Franchisees
There is a discount program to qualified employees of Outdoor Lighting Perspectives franchisees who (i) are recommended in writing by their employer; and (ii) have been employed in good standing for at least 2 years. The discount on the initial franchise fee would depend on the number of consecutive years of employment, such that:
YEARS OF CONSECUTIVE EMPLOYMENT
2
3
4
5
6
7
8
9
10 and more
% DISCOUNT ON INITIAL FRANCHISE FEE
10%
15%
20%
25%
30%
35%
40%
45%
50%
Royalty Fee
Outdoor Lighting Perspectives collects royalty fee on a monthly basis in an amount equivalent to the greater of the sum of 7% of Gross Revenue; OR the Minimum Royalty of $1,100 per month.
Franchise Locations in the US
Based on its most recent FDD, Outdoor Lighting Perspectives has 126 franchises as of December 2023 which represents an increase of 15 franchised outlets in a 1-year period.
These outlets are found in the following states: Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, lowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.
BLINGLE!
Franchise Offered
Formed in May 2020 under the law of the Commonwealth of Pennsylvania, Blingle! offers the opportunity to operate a business that specializes in commercial and residential holiday lighting, installation, maintenance and storage.
Investment Needed
According to Item 7 of its most recent FDD, the investment needed to put up your own Blingle! franchise is estimated to be around $177,395 to $243,495 with Vehicles being the biggest expense estimated to cost $35,300 to $40,300.
Initial Franchise Fee
Included in the estimated investment amount above is the $59,500 initial franchise fee payable to HPB Lighting LLC upon signing of the Franchise Agreement. This amount is payable within 45 days after the execution of the Franchise Agreement, and is non-refundable. Further, according to Item 6 of its 2024 FDD, this initial franchise fee covers a Protected Territory of approximately 200,000 in total general population.
Brand Marketing Fee
Blingle! charges a one-time brand marketing fee of $15,000. This fee covers the costs of creation, production and distribution of brand marketing assets, strategies and other materials or activities such as the internet, social media, search engine optimization, video production, photography, campaign development and related advertising or marketing expenses.
ZeePartnerships Fee
Another one-time fee that Blingle! collects from its franchisees within 45 days from the date of execution of the Franchise Agreement is the ZeePartnerships Fee of $3,000. This covers the costs of building, developing, and maintaining national and regional strategic partnerships that assist in promoting brand awareness and creating lead generation opportunities.
Royalty Fee
Blingle! collects a monthly flat-rate Royalty fee based on total number of Protected Territories as follows:
# of Protected Territories
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
1
$1,500
$1,600
$1,700
$1,800
$,1900
$2,000
2
$1,500
$1,700
$1,900
$2,100
$2,300
$2,500
3
$1,500
$1,800
$2,100
$2,400
$2,700
$3,000
Franchise Locations in the US
Based on its most recent FDD, Blingle! has 36 franchise outlets in the US as of December 31, 2023.
These outlets are found in the following states: Arizona, Colorado, Florida, Georgia, Indiana, Iowa, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Jersey, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Wisconsin.
CHRISTMAS DÉCOR
Franchise Offered
Christmas Décor offers to operate a special event, holiday and Christmas lighting and decorating services that offers high quality lighting displays at homes and businesses during the Christmas season and for other holidays and special events.
Investment Needed
According to Item 7 of its most recent FDD, the investment needed to put up your own Christmas Décor franchise is estimated to be around $29,550 to $116,250.
Initial Franchise Fee
Included in the estimated investment amount above is the initial franchisee fee payable to The Decor Group, Inc. The amount of initial franchise fee varies according to the size and type of your territory.
For Standard Market Service Territory, the base fee is $15,900 plus a territory fee ranging from $1,500 to $60,000 for a territory with a base population greater than 100,000 while for Community Market Service Territory, the base fee is $7,900 plus a territory fee ranging from $1,500 to $20,000 for a territory with a base population less than 100,000.
Royalty Fee
Referred to in Item 6 of its FDD as “Holiday Lighting Services Royalty Fee”, the Decor Group, Inc. collects royalty fees on a monthly basis except for the first franchise year where it is collected annually. The royalty fee collected is 5% of annual Gross Sales attributable to Holiday Lighting Services.
Franchise Locations in the US
Based on its most recent FDD, Christmas Décor has a steady number of 240 franchise locations in the US as of the end of 2023.
These outlets are found in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
EVERYTHING CHRISTMAS
Franchise Offering
Everything Christmas offers the opportunity to operate a seasonal holiday products retail business which is opened in malls or strip center locations in temporary retail locations. This business will sell at a discounted price quality Christmas merchandise such as artificial trees and wreaths, gift bags, wrapping paper, decorations, lights, Christmas hats & stockings, Christmas cards (if allowed), toys, consignment products, coloring books, gift wrap accessories, food and candy items and a full line of New Year’s Eve goods.
Investment Needed
According to Item 7 of its most recent FDD, the investment needed to put up your own Everything Christmas franchise is estimated to be around $112,600 to $158,250. The biggest chunk of this amount is allocated towards expenses for the initial inventory which is estimated to range anywhere between $80,000 to $100,000.
Initial Franchise Fee
Included in the estimated investment amount above is the $10,000 lump sum initial franchisee fee payable to Everything Christmas Stores, LLC. According to Item 5 of its Most Recent FDD, the initial franchise fees for Everything Christmas are deferred until the Franchisor has delivered all pre-opening obligations and the franchisee is open for business.
Royalty Fee
Everything Christmas collects royalty fee in an amount equivalent to 5% of gross revenue due December 25 based on the entire season of gross sales. Everything Christmas defines this ‘season’ as sales generated from September 1 to December 25 of each year.
Franchise Locations in the US
Based on its most recent FDD, Everything Christmas has 11 franchise outlets in the US as of December 2023.
These outlets are found in the following states: California, Minnesota, Montana, New Mexico, New York, and Vermont.
Meet the Author:
Christine Bontuyan is a lawyer in the Philippines and she is based in Cebu City. She earned her Juris Doctor degree in 2020. Apart from handling civil and criminal cases in the Philippines, Christine serves as a paralegal for reputable US law firms. She previously served as an elected public official in the Philippines, as a Sangguniang Kabataan Chairperson in Cebu City, Philippines from 2018 to 2023.
