Christmas Decor Franchise: Is Profit Worth the Cost? (2025)

Christmas decorating is a way for businesses and individuals to generate revenue during the traditionally slow holiday season. The Christmas Decor franchise opportunity allows seasonal businesses to offset fixed overhead costs and retain key employees all year round. This franchise system is an excellent choice for those looking to expand their christmas decor business and increase revenues through professional decorating services and landscape lighting.

For over 20 years, Christmas Decor professional holiday decorators have been creating enchanting displays for customers. Christmas Decor Inc is the leading holiday decorating and professional Christmas light installation company in North America, providing its clients with captivating displays and unparalleled service.

Christmas Decor was founded in 1986 in Lubbock, Texas, where it initially began by hanging lights during the holidays. In 1996, the company opened its first 7 franchises in Texas, Oklahoma, Tennessee, and Illinois. Then in 2015, the company moved its corporate headquarters from Lubbock to Irving, Texas, to increase accessibility for franchisees to attend training and events.

How Is Christmas Decor Franchise Positioned in the Christmas Decor Industry?

The Christmas decor industry includes a wide range of products, such as holiday lights, ornaments, artificial Christmas trees, wreaths, garlands, and other decorations.

According to a report by IBISWorld, the Christmas decorations industry in the U.S. generated around 3.8 billion U.S. dollars in revenue in 2020. There is an expectation to grow at an annualized rate of 3.5% to reach 4.6 billion U.S. dollars by 2025. The Christmas tree market is one of the most significant segments of the holiday decor industry, with an estimated value of 2.4 billion U.S. dollars in 2020.

The market is mainly driven by factors such as an increase in consumer spending on seasonal decorations, the growth in population, and the rising popularity of outdoor decorations.

Online sales of Christmas decorations have also been growing in recent years, driven by the convenience and wider selection offered by e-commerce platforms. It's worth mentioning that this is a highly seasonal industry. Most of the sales and revenues happen in Q4, a few months before and during the Christmas period.

How Much Is a Christmas Decor Franchise?

The initial Christmas Decor Franchise Fee is $9,900. You have to pay this upfront fee when opening a Christmas Decor franchise.

Christmas Decor Franchise Cost

The estimated total investment necessary to begin the operation of a Christmas Decor Franchise ranges from $19,550 to $62,250. The following costs are part of the upfront costs included in the initial investment for Christmas Decor. Many of these are one-time fees that are needed to launch the franchise.

Time to Recoup Investment

Based on the median sales provided by Christmas Decor’s franchise locations, at an average of a 15% profit margin it will take around 2.5 years to recoup your investment. This is shorter than other franchise opportunities but due to the highly seasonal nature of the business, this will not be consistent year round.

You may not get a 15% profit margin, which would elongate getting a return on your investment.

Many factors affect the sales, costs, and expenses of your Franchised Store, such as the Franchised Store’s size, geographic location, competition in the marketplace, the presence of other Christmas Decor stores, and the extent of market penetration and brand awareness in your market. The quality of management and service are also major factors.

Is the Franchise Profit Worth the Franchise Cost?

To assign a valuation multiple for Christmas Decor franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry. As well as selling price multiples for larger systems where more transaction data is available.

Under $5 Million Net Sales

• Estimated Selling Price = Net Sales * 0.56

When you go to sell a Christmas Decor franchise based on the median multiple of .56 and of $204,950, it would sell for $114,772. This is significantly higher than the midpoint investment of $40,900.

The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.

Conclusion

In conclusion, the Christmas Decor franchise offers a unique opportunity for seasonal businesses to offset fixed overhead costs and retain key employees all year round by expanding revenues during the traditionally slow holiday season.

With over 20 years of experience and a reputation for creating enchanting holiday displays and providing exceptional service, Christmas Decor Inc has positioned itself as a leader in the Christmas decor industry.

The initial investment ranges from $19,550 to $62,250, with a franchise fee of $9,900 and median franchise sales of $204,950. Based on the median sales figures, at an average 15% profit margin, it would take approximately 2.5 years to recoup the initial investment. Actual results may vary depending on factors such as location, competition, and management quality.

While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Home and Building industry.