The Waxman Funeral Parlor is the funeral parlor that undertakes the funeral of Uncle Albert.
Uncle Albert passed away in the backyard of the Tanner residence when he accidentally discovered ALF in his tent watching television. His death occurred soon after Uncle Albert had turned over a new leaf, and the family comes home to see ALF honoring Uncle Albert with a Melmacian funeral, which looks like a party. The Melmacian custom of celebrating when someone dies is at odds with Willie's feeling that death is a time of mourning. This opens up the family for a discussion about how one should react to death.
At the end of the episode, Willie arranges for a genuine funeral at the Waxman Funeral Parlor.