Executive Summary
The Christmas lights business is a profitable, well-established seasonal business operating under a franchise system in the London, Ontario market. The business specializes in the professional design, installation, and removal of holiday lighting and décor for residential, commercial, and municipal clients. Now in its 12th year of operation, the franchise has built a loyal, repeat-based client base driven primarily through word-of-mouth referrals, a testament to the quality and consistency of its service. The business has demonstrated steady revenue growth, rising from $98,000 in 2024 to $107,000 in 2025, while significantly improving profitability from $44,934 to $71,029 in Seller’s Discretionary Earnings over the same period. The owner is selling due to increasing demands from his primary arborist business, which has stretched his management capacity across both operations. The business is structured as an asset sale and represents a turnkey acquisition for the right buyer. The asking price is $170,000, inclusive of the franchise transfer fee of 10% of the selling price.
Business Operations
Christmas Decor is one of North America’s leading holiday lighting and décor franchise systems, offering franchisees a proven business model, brand recognition, and ongoing operational support. The London franchise has been operating for 12 years, demonstrating strong staying power within the local market.
- Contract renewals: August
- Installation period: Late fall (November)
- Peak service delivery: November through December
- Removal period: January (early new year)
- Off-season: February through September (minimal activity)
Financial Overview
Revenue & Profitability
| Metric | 2024 | 2025 |
|---|---|---|
| Revenue | $98,000 | $107,000 |
| Seller’s Discretionary Earnings | $44,934 | $71,029 |
The business has shown meaningful profitability improvement year-over-year, with SDE growing by 58% from 2024 to 2025. This reflects both revenue growth and improved cost management during the operating season.
Assets Included in Sale
The following assets will be transferred to the buyer as part of this transaction:
Intellectual Property & Contracts
- Franchise agreement (franchise rights for the London territory)
- Customer list: complete database of residential, commercial, and municipal clients
- Current active contracts, including any multi-year or municipal agreements
- Business website
- Business phone number(s)
Inventory & Equipment
A comprehensive inventory of holiday lighting and décor is included, estimated at approximately $100,000 in replacement value, including:
- Existing client inventory: lights and products organized in labeled bins, sorted by client for efficient reinstallation each season
- Additional inventory for new client acquisition: stock available to onboard new customers without additional purchasing in Year 1
- Trees and wreaths (commercial and residential grade)
- Ladders and installation equipment
- 2023 single-axle 14-foot enclosed trailer, ideal for transporting and storing seasonal inventory
Training & Transition Support
- Two days of hands-on training provided by the seller covering operations, installation processes, client management, and seasonal scheduling
- Seller will facilitate introductions and handoff of existing client relationships, including municipal accounts
- Transition support can be structured to meet the buyer’s needs
Customers & Contracts
- Residential clients: homeowners seeking professional holiday lighting installation and removal
- Commercial properties: offices, retail locations, and property management clients
- Municipal contracts: established relationships with local government or public spaces, providing recurring, high-credibility work
Customer Acquisition Model
The business has grown almost exclusively through word-of-mouth referrals. This is both a strength and an opportunity: it confirms that the service quality is high enough to generate organic growth with zero marketing spend. An incoming buyer who invests in structured marketing, digital presence, or referral programs could accelerate growth meaningfully.
Client Retention
Repeat business is the backbone of annual revenue. The nature of the highly organized service (custom-installed lighting stored in labeled bins per client) creates strong year-over-year retention, as clients return each season for seamless reinstallation of their existing systems.
Valuation
Based on the 2025 Seller’s Discretionary Earnings of $71,029 and an applied multiple of 2.5x, the implied business value is $177,572. The asking price of $170,000 represents a below-market multiple of approximately ~2.39x SDE, offering a compelling entry point for a buyer.
SDE (2025) $71,029
Market Multiple (2.5x) $177,572 implied value
Asking Price $170,000
Implied Multiple at Asking Price ~2.39x SDE
The below-market asking price reflects the seller’s desire for a clean, timely transition rather than a maximized sale price. With approximately $100,000 in inventory included, buyers are effectively acquiring the operational business at minimal goodwill premium above asset value.
Growth Opportunities
The business has grown organically to over $100,000 in revenue with limited structured marketing. A motivated buyer has meaningful levers to grow the business:
- Structured marketing and digital presence: the business currently relies on word-of-mouth; a social media presence or targeted local ads could significantly expand the residential client base
- Commercial & property management partnerships: condo boards, commercial plazas, and HOAs represent high-value recurring contracts
- Pricing optimization: premium service in a specialized niche allows for selective price increases, particularly for new clients
- Crew expansion: hiring additional installation crews during peak season could double capacity with limited incremental overhead
- Cross-selling: buyers from landscaping, tree service, or property maintenance backgrounds can offer Christmas Decor as an add-on to their existing client base, dramatically reducing customer acquisition cost
- Indoor decor services: expanding into commercial interior holiday decorating, tree installation, and corporate event décor
