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>> we negotiate with manufacturers, bring them to our facility and distribute out of there. we step out early in the year, january, february, a lot of times we pay for this in advance. so we operate as a closed network, we make the investment so that the franchisees don't have to. >> purchasing decorations is just part of the agreement. owners pay royalties and invited to attend events. >> it's a 5% royalty. we do a 1% ad fund we use for branding throughout the country, administration of website, public relations. we have an annual conference which is a great networking opportunity but has qui...

Christmas decor makes an early investment for things like lights to make sure the owners have access to the supplies they'll need. >> we negotiate with manufacturers of these products and bring them into our facility in texas and distribute them out of there. we step out early in the year, january, february, and a lot of times we pay for this stuff in advance. so we operate as a close network, we make the investment so the franchisees don't have to. >> purchasing decorations are just part of the agreement. owners pay royalties and are invited to events. >> we do a 1% ad fund which we use for b...

Supplies they'll need. >> we make the investment so that the franchisees don't have to. >> purchasing decorations is part of the agreement. owners pay royalties and invited to other events. >> it's a 5% royalty and one percent add fund we use for branding, addm of website, public relations programs. >> yes, this is a seenal franchise but it's grown in unexpected ways. some decorations are now going up months before christmas. >> for the last five years, we've been starting the first part of october. this year we actually went a little bit into september. >> when we got into this, we expected i...

To us. >> and christmas decor makes an early investment on things like lights to make sure owners have access to the supplies they need. purchasing decorations is just part of the franchise agreement. owners pay royal fees and are invited to pay other events. >> 5% royalty, then a 1% ad fund, which we use for branding throughout the country, administration of website, public relation programs. >> yes, this is a seasonal franchise, but it's grown in some unexpected ways. some decorations are now going up months before christmas. >> for the last five years, we've been starting the first part of ...