Christmas Decor franchise unit economics
Christmas Decor franchisees run holiday lighting businesses that sell, install and take down lighting and decorations for homes and businesses, with most sales between September and December.
Christmas Decor franchise at a glance
Christmas Decor's 2026 FDD reports gross sales for the season that ended in December 2024 by years in operation and for the top 10% of franchises, plus a franchisee survey of estimated net profit, average new sale, closing rate, customer retention and daily crew production.
Christmas Decor franchises in operation for five years or more averaged $432,619 of gross sales in the season that ended in December 2024, with a median of $229,705, across 205 franchises, according to Item 19 of Christmas Decor’s 2026 FDD, issued 18 March 2026. Fees paid to Christmas Decor come to about 6.55%* of sales.
- Christmas Decor franchises in operation for two to four years averaged $163,915, with a median of $79,164, across 20 franchises.
- Christmas Decor franchisees who answered the brand’s survey put estimated net profit at 44% of sales on average and 52% at the median, before royalty fees and owner pay.
- A Christmas Decor franchise pays a 5% royalty and a 1% marketing development fund contribution on holiday lighting sales, with annual minimums in franchise years 2 to 5 set by the prior year’s sales.
- At the $432,619 average, the royalty, fund contribution and the $2,395 Plus software licence come to $28,352* a year, or 6.55%* of sales.
- A Christmas Decor franchise costs $21,550 to $116,250 to open: $29,550 to $116,250 in a standard market territory and $21,550 to $68,250 in a community market territory.
- Christmas Decor had 245 franchised outlets and no company-owned outlets at the end of fiscal 2025, up from 244 a year earlier.
These figures come from Christmas Decor's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The $28,352 annual total and the 6.55% share of sales are Averan calculations: 5% and 1% of $432,619 plus the $2,395 Plus software licence.
Own this franchise?
See what your numbers should look like every month.
Talk to Averan → Averan Christmas Decor Conversion Package →- The 205 franchises open five years or more averaged $432,619, and the median was $229,705. The median is 53.1%* of the average. Sales in the group ran from $7,538,747 at the highest to $28,313 at the lowest, and 41% of the group sold more than the average.
- The top 10% of franchises by sales averaged $2,563,502. Item 19 says these 24 franchises belong to 8 owners, 3* franchises per owner on average. The lowest of them sold $1,207,078 and the median was $1,698,728.
- Franchises open two to four years averaged $163,915, with a median of $79,164. That average is 37.9%* of the five-year average. The group has 20 franchises held by 20 owners.
- Surveyed franchisees put estimated net profit at 44% of sales on average and 52% at the median. The FDD defines it as sales less product, labor, sales and marketing, equipment rental and other variable costs. Royalty fees, owner salary or draws and fixed-asset allocations are not deducted. The survey covers 227 franchises.
- Royalty and fund minimums in years 2 to 5 are set by the previous year’s sales. In a standard market territory with prior-year sales above $200,000, the royalty minimum is $6,950 and the fund minimum $1,150, $8,100* together. The 5% royalty equals its minimum at $139,000* of sales.
Gross sales, 2024 season
How much does a Christmas Decor franchise make?
| Group | Franchises | Average | Above average | Below average | Highest | Lowest | Median |
|---|---|---|---|---|---|---|---|
| Top 10% in sales | 24 | $2,563,502 | 25% | 75% | $7,538,747 | $1,207,078 | $1,698,728 |
| 5 years or more in operation | 205 | $432,619 | 41% | 59% | $7,538,747 | $28,313 | $229,705 |
| 2 to 4 years in operation | 20 | $163,915 | 30% | 70% | $690,015 | $15.419 (as printed) | $79,164 |
Source: Item 19, Table No. 1 and its notes. Gross sales are holiday lighting sales less sales tax, discounts, allowances and returns, from residential and commercial customers, as reported to the franchisor for royalties. The FDD prints the lowest figure for the 2 to 4 year group with a decimal point in place of a comma.
Franchises in operation for five years or more averaged $432,619 of gross sales in the season that ended in December 2024. The group is 205 franchises held by 163 owners. The median was $229,705, the highest $7,538,747 and the lowest $28,313. Of the group, 41% sold more than the average and 59% less.
Franchises in operation for two to four years averaged $163,915, with a median of $79,164. The group is 20 franchises held by 20 owners. Its highest was $690,015. The average is 37.9%* of the five-year group’s average.
The sales data come from 183 franchisees representing 225 franchises, 92% of the 244 active franchises at January 20, 2025. Item 19 left out 11 franchises that did not report or had little activity because their owners were selling, and 8 franchises open for less than 12 months. Item 19 says first-year sales are not representative because franchisees start at different times of the year, often in the last quarter.
The Item 19 figures describe the 2024 season, not 2025. The FDD says the most recent completed sales season ended in December 2024. Item 19 does not report the 2025 season.
Franchisee survey, 2024
Profit and sales measures from the franchisee survey, 2024
| Measure | Average | Above average | Below average | Median |
|---|---|---|---|---|
| Estimated net profit as a percentage of sales | 44% | 64% | 36% | 52% |
| Average new sale (first-time residential customers) | $2,102 | 43% | 57% | $1,949 |
| Closing rate (sales to first-time residential appointments) | 47% | 48% | 52% | 50% |
| Customer retention (residential renewals) | 80% | 57% | 43% | 83% |
| Daily production, 3-man crew | $3,386 | 46% | 54% | $3,130 |
Source: Item 19, Table No. 2 and its notes. 184 franchisees representing 227 franchises, 93% of the 244 active franchises, answered the survey. The figures are as reported by franchisees.
Surveyed franchisees reported estimated net profit of 44% of sales on average and 52% at the median. Item 19 defines estimated net profit as total sales less product costs, labor, sales and marketing costs, equipment rental and other variable costs of the Christmas Decor business. Royalty fees, owner salary or draws and allocations of fixed assets not changed by the Christmas Decor business are not deducted.
The average new sale to a first-time residential customer was $2,102, and 47% of appointments with those customers led to a sale. The medians were $1,949 and 50%.
Average customer retention was 80%, with a median of 83%. Item 19 measures it as renewals by residential customers of at least two years against the previous year’s residential customers.
A three-man crew installed $3,386 of sales a day on average during the holiday season. Item 19 puts that season at the last two weeks of October, all of November and the first two weeks of December. The median was $3,130.
The survey group is not the same as the sales group. The survey covers 227 franchises, including 15 in their first or second year and 11 in their third or fourth; the five-year sales average covers 205 franchises.
Top 10% and tenure groups
Gross sales by group, 2024 season
| Group | Franchises | Owners | Average | Median | Average as a share of $432,619* |
|---|---|---|---|---|---|
| Top 10% in sales | 24 | 8 | $2,563,502 | $1,698,728 | 592.6%* |
| 5 years or more in operation | 205 | 163 | $432,619 | $229,705 | 100% |
| 2 to 4 years in operation | 20 | 20 | $163,915 | $79,164 | 37.9%* |
Source: Item 19, Table No. 1 and notes 2 to 4. The top 10% is drawn from all 244 active franchises and overlaps the five-year group. The last column is an Averan calculation.
The top 10% of franchises by sales averaged $2,563,502 in the 2024 season. That is 5.9 times* the five-year group’s average. The 24 franchises belong to 8 owners, 3* franchises per owner on average.
The lowest franchise in the top 10% sold $1,207,078. The highest sold $7,538,747, the same figure as the highest in the five-year group. Of the top 10%, 25% sold more than the group’s average and 75% less.
In the five-year group the median is $229,705, or 53.1%* of the average. Item 19 reports 41% of the group above the average and 59% below.
Item 19 reports two tenure groups, not year-by-year results. Franchises open two to four years averaged $163,915 and those open five years or more $432,619. Item 19 does not give results by single year of operation or by market size.
Brand charges
Brand charges
| Charge | Amount | At the $432,619 average* | Share of sales* |
|---|---|---|---|
| Holiday lighting royalty | 5% of annual gross sales from holiday lighting services, with minimums in years 2 to 5 | $21,631* | 5% |
| Marketing development fund | 1% of annual gross sales from holiday lighting services, with minimums in years 2 to 5 | $4,326* | 1% |
| Software licence renewal (from year 2) | $1,897 Essentials, $2,395 Plus or $4,389 Enterprise a year | $2,395 (Plus) | 0.55%* |
| Local or regional advertising materials | Reasonable charge if the franchisor provides them; estimated at 2% to 8% of gross sales a year | Not included | – |
| Royalty, fund and Plus software | $28,352* | 6.55%* |
Source: Item 6. The software licence for the first franchise year is included in the initial fee. Other Item 6 charges arise case by case: a $2,500 transfer fee, a $2,000 renewal fee, additional training at $399 plus costs, $850 for online conference materials if a required conference is missed, late fees, interest, audit and product-testing costs, and a termination fee of up to 24 months of minimum royalties.
The royalty is 5% and the marketing development fund contribution 1% of annual gross sales from holiday lighting services. In the first franchise year both are paid once, by January 20 of the following year. From year 2 to year 5 a minimum is paid in 11 monthly instalments from February 1 to December 1, and the balance is settled in January.
The minimums depend on the previous year’s sales and on the type of territory. In a standard market territory the royalty minimum is $3,050 for prior-year sales up to $100,000, $3,950 to $150,000, $5,000 to $200,000 and $6,950 above $200,000. The fund minimum is $640, $850, $1,000 and $1,150 in the same bands. At the top band the two come to $8,100*.
In a standard market territory at the top band, the 5% royalty equals the $6,950 minimum at $139,000* of sales. The 1% fund contribution equals its $1,150 minimum at $115,000*. A franchise whose previous year was above $200,000 and whose current year falls below those levels pays the minimum.
Community market territories, with a base population under 100,000, have lower minimums. The royalty minimum is $2,750, $3,050, $3,500 and $4,250 across the four bands, and the fund minimum $550, $640, $700 and $850.
Monthly minimum payments are weighted toward the season. In a standard market territory with prior-year sales above $200,000, the royalty minimum is $250 a month from February to September and $1,650 a month from October to December. The fund minimum is $50 and $250.
The fund contribution can rise. Item 6 says the franchisor may raise it if it recommends an increase and 51% of franchisees in good standing approve.
Cost to open
Cost to open
| Item | Standard market low | Standard market high | Community market low | Community market high |
|---|---|---|---|---|
| Initial franchise fee, base fee | $15,900 | $15,900 | $7,900 | $7,900 |
| Initial franchise fee, territory fee | $1,500 | $60,000 | $1,500 | $20,000 |
| Initial rent and deposit | $0 | $1,000 | $0 | $1,000 |
| Leasehold improvements | $0 | $1,000 | $0 | $1,000 |
| Vehicle (first month’s lease) | $0 | $350 | $0 | $350 |
| Business licenses and permits | $0 | $500 | $0 | $500 |
| Insurance | $200 | $3,000 | $200 | $3,000 |
| Initial printing supply package | $1,500 | $5,000 | $1,500 | $5,000 |
| Legal and accounting fees | $250 | $1,500 | $250 | $1,500 |
| Initial inventory and equipment | $8,000 | $20,000 | $8,000 | $20,000 |
| Computer system | $0 | $500 | $0 | $500 |
| Quick Start training travel and living expenses | $1,200 | $1,500 | $1,200 | $1,500 |
| Additional funds, first 6 months | $1,000 | $6,000 | $1,000 | $6,000 |
| Total estimated initial investment | $29,550 | $116,250 | $21,550 | $68,250 |
Source: Item 7 and Item 5. The cover page gives the combined range as $21,550 to $116,250, of which $9,400 to $75,900 is paid to the franchisor or its affiliates. Item 5 says all initial fees are deferred until the business opens.
The 2026 FDD estimates $29,550 to $116,250 to open in a standard market territory and $21,550 to $68,250 in a community market territory. A standard market territory has a base population above 100,000 and a community market territory below 100,000. The largest variable lines are the territory fee and the initial inventory of lights, garland, wreaths and fasteners at $8,000 to $20,000.
The initial franchise fee is a base fee plus a territory fee. The base fee is $15,900 in a standard market and $7,900 in a community market. The territory fee is $1,500 to $60,000 or $1,500 to $20,000, set by the size and type of territory, the number of households and other demographic data. An option to reserve a territory costs $1,000, credited against the fee.
The business can run from home or as a division of an existing business. Item 1 says franchises are often sold to owners of an existing business, such as a landscape business. Item 7 notes that an add-on franchise may need less in additional funds.
The franchise agreement requires the business to open within 30 days of its effective date. Quick Start training of up to 5 days is completed before holiday lighting services are offered.
The territory is exclusive for holiday lighting sold to residential properties, and not for commercial properties. Item 12 says the residential protection depends on meeting annual performance benchmarks, and the franchisor may reduce the territory if a benchmark is missed.
Locations
Locations, 2023 to 2025
| Year | Outlets at start | Opened | Terminated | Not renewed | Outlets at end | Transfers |
|---|---|---|---|---|---|---|
| 2023 | 240 | 9 | 3 | 6 | 239 | 3 |
| 2024 | 239 | 10 | 2 | 3 | 244 | 3 |
| 2025 | 244 | 11 | 5 | 5 | 245 | 3 |
| 2023–2025* | 240 | 30* | 10* | 14* | 245 | 9* |
Source: Item 20, Tables No. 1 to 5. The 2023 figures cover January 1 to December 31, 2023; 2024 covers January 1 to October 31, 2024; 2025 covers November 1, 2024 to October 31, 2025. Table No. 1 prints 240 outlets at the end of 2023 and the start of 2024, where Table No. 3 prints 239. Reacquisitions and other closures were 0 in every year. There were no company-owned outlets.
Franchised outlets rose from 244 to 245 in fiscal 2025. There were 11 openings, 5 terminations and 5 non-renewals. Terminations and non-renewals together equal 4.1%* of the outlets at the start of the year.
From 2023 to 2025, 30* franchised outlets opened, 10* were terminated and 14* were not renewed. Item 20 shows no reacquisitions and no other closures in those years.
There were no company-owned outlets from 2023 to 2025. Item 1 says the franchisor does not operate businesses of the type it franchises. The current franchisor was formed in October 2024 and bought the franchise assets of the Christmas Decor system in November 2024; its parent is Wonder Franchises, LLC.
Item 20 lists no franchise agreements signed for outlets not yet open at October 31, 2025. It projects 33 new franchised outlets and no company-owned outlets in the next fiscal year. Three outlets transferred to new owners in each of the three years.
Questions we get asked
Questions owners ask
How much does it cost to open a Christmas Decor franchise?
The 2026 FDD estimates $29,550 to $116,250 in a standard market territory and $21,550 to $68,250 in a community market territory. The initial franchise fee is a base fee of $15,900 or $7,900 plus a territory fee of $1,500 to $60,000 or $1,500 to $20,000. Initial inventory and equipment is $8,000 to $20,000.
What fees does a Christmas Decor franchisee pay?
A 5% royalty and a 1% marketing development fund contribution on gross sales from holiday lighting services, with minimums in years 2 to 5 set by the previous year’s sales. From year 2 there is an annual software licence of $1,897, $2,395 or $4,389. In a standard market territory with prior-year sales above $200,000, the minimums are $6,950 of royalty and $1,150 of fund contribution.
How much revenue does a Christmas Decor franchise make?
For the season that ended in December 2024, the 205 franchises open five years or more averaged $432,619 of gross sales, with a median of $229,705. The 20 franchises open two to four years averaged $163,915, with a median of $79,164. The top 10% by sales averaged $2,563,502.
How much profit does a Christmas Decor franchise make?
In the brand’s survey of 227 franchises, estimated net profit averaged 44% of sales, with a median of 52%. That figure is before royalty fees, owner salary or draws and fixed-asset allocations. The FDD does not report profit in dollars.
How many Christmas Decor locations are there?
Item 20 shows 245 franchised outlets and no company-owned outlets at October 31, 2025, up from 244 a year earlier. In fiscal 2025, 11 outlets opened, 5 were terminated and 5 were not renewed. The franchisor projects 33 new franchised outlets in the next fiscal year.
When does a Christmas Decor franchise make its sales?
Item 19 says most sales fall between September and December. It puts the installation season at the last two weeks of October, all of November and the first two weeks of December. Royalty and fund minimums are paid monthly from February to December, with higher amounts from October.
Questions worth putting to Christmas Decor
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Christmas Decor see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Christmas Decor locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a Christmas Decor owner
We review your unit economics and cash forecast and build your monthly reporting around the figures on this page.
Talk to Averanthe franchise library, all 431 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Other brands in the Window Cleaning And Exteriors guide: Fish Window Cleaning · Outdoor Lighting Perspectives · Shine Window Cleaning · Window Genie.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Decor Group Franchising LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Christmas Decor is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Decor Group Franchising LLC, 2026 Franchise Disclosure Document, issued 18 March 2026.