$1.4M/Yr Christmas Lighting Franchise

Today, we're talking about Christmas in July

Why?

To capture the 2023 season, you need to get started by August. We're diving into Blingle, a premium lighting franchise:

• $1.1M sales in 3 months (at founding location)

• 33% EBITDA margin (at founding location)

• Done-for-marketing + call center

• 90% customer retention

• Year-round jobs

Business Model

The core business is renting Christmas lights.

You purchase high-quality commercial-grade lights, install them, remove them, & rent again next year.

It’s a recurring revenue model with over 90% customer retention year-to-year at the founding location.

The Christmas light business is highly fragmented, with many unsophisticated small operators.

Blingle has created a year-round, highly professional model. From February to September, you are doing:

• Residential landscape & patio lighting

• Commercial permanent lighting

• Event light for weddings & parties

Business Model

The 2023 FDD provides financials for the founding location.

In 2021 sales were $822k. In 2022, they had a 78% increase to $1.47M.

Almost $1.2M came from holiday lighting. 2022 was the first year they started "year-round" work, generating almost $300k in permanent & event lighting.

They produced $490k EBIDTA at a 33% margin. This P&L represents about three territories (900k population)

They also give us several KPIs in the FDD. The most interesting one:

345 non-serviceable holiday leads they couldn't quote because of lack of materials or availability. It shows the amount of demand that’s out there.

345 leads x 42% close rate x $1,436 avg ticket = $200k+ of holiday sales lost

The holiday lights you purchase to rent out are considered assets.

The cost is reflected on your balance sheet. Your P&L will reflect the cost via depreciation. From a cash-flow perspective, you'll buy more lights every year as the business grows.

Lights should last about 7 seasons.

Company History

The founding location was established in 2014. In 2021, Horse Power Brands acquired the company, renaming it to Blingle!

Horse Power is the fastest-growing home service franchise group in the country. They currently have 7 home-service brands that share in-house services:

• marketing

• call-center

• bookkeeping

• business coaching

Start-Up

Horse Power is looking for empire builders who love a fast-paced environment. They don't want owners hanging lights. They want them building & leading the team.

1 territory (300k population) costs $280k to $420k

This includes the franchise fee, inventory (that you’ll see), vehicles, initial marketing, working capital & more. Item 7 of the 2023 FDD provides a complete breakdown.

Since most people get a loan, they front load the first 12 months of required expenses in the start-up costs. You have to pay these either way. It helps improve your cash flow in the first year by financing them.

Many franchisees buy 3 territories to capture a 900k population & own a nice chunk of the market.

NOT available in CA, MD, VA, NY or IL, but many great markets are still open

Next Steps

Reply to this email with your name, zip code, phone & email if interested in learning more.

My team will confirm your territory is open and provide tools, checklists & resources to give you confidence.

It costs you absolutely nothing. We get paid a referral fee by the franchisor if you join.

If Blingle isn't the right fit, my team works with you 1-1 to find another franchise that meets your goals, budget, skills & location.

For more on Blingle check out my podcast episode

Cheers!

Brian Beers