HTeaO Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

94
+
169%
169%
Investment required

?

$260,000 - $1,977,000
Revenue (AUV)

?

$1,372,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$40,000
Royalty fees

?

6.00%
+
4.00%
Operating Profit

?

n.a.

Pro
Franchisees

?

94
+
169%
169%
Investment required

?

$260,000 - $1,977,000
Franchise fee

?

$40,000
Royalty fees

?

6.00%
+
4.00%
Revenue (AUV)

?

$1,372,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

HTeaO: Revolutionizing the Iced Tea Experience Across America

HTeaO began its journey in 2009 in Amarillo, Texas, founded by Justin Howe and Gary Hutchens. What started as a creative way to drive more business to the family’s restaurant during a challenging economy quickly evolved into a concept with national appeal.

The brand’s first corporate location opened in Midland, Texas, in 2018, followed by the launch of its franchise program in 2019. Now headquartered in Fort Worth, Texas, HTeaO has rapidly grown, boasting more than 68 operational stores and over 425 franchise licenses awarded throughout the United States.

HTeaO sets itself apart by offering a drive-thru model focused entirely on freshly brewed iced teas. With 24 distinct flavors crafted daily using all-natural ingredients and filtered water, the franchise provides a refreshing and health-conscious alternative to traditional beverages.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $40,000
Rent (3 months) $9,000 - $42,000
Utility and Lease Security Deposits $2,200 - $16,000
Opening Day Promotion and Initial Marketing Campaign $10,000 - $20,000
Lease Negotiations Assistance $0 - $3,000
Design and Architectural Fees $31,670 - $68,620
Licenses and Permits $1,000 - $6,000
Leasehold Improvements $0 - $1,241,000
Signage $10,000 - $70,000
Furniture and Fixtures $35,000 - $55,000
POS/Back Office System $6,000 - $22,000
Equipment $95,000 - $210,000
Professional Services $3,000 - $6,000
Initial Inventory $1,000 - $55,000
Insurance $4,000 - $12,000
Training Expenses $2,000 - $10,000
Additional Funds $10,000 - $100,000
Total $259,870 - $1,976,620

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

94

+
169%
169%
No growth
New

$40,000

$260,000

-

$1,977,000

n.a.

$1,372,000

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

Training

HTeaO provides a structured and multi-phase training program designed to prepare franchisees and their teams for store operations. These programs include:

  1. Initial Training Program
    Before the store opens, HTeaO requires the designated General Manager and one additional team member to complete an initial training course. This program takes place at a location set by the franchisor and may include up to two trainees free of charge, with additional participants incurring a tuition fee.
  2. Store Opening Assistance
    For first-time franchisees, HTeaO provides four days of on-site assistance during the store's opening. This includes guidance on setup, operations, and initial troubleshooting to ensure a smooth launch.
  3. Pre-Opening and Ongoing Consultation
    The franchisor offers consulting support on store layout, equipment, inventory, and marketing prior to the opening. Post-opening, continued advice is available on product development, operations, and financial management.
  4. Additional and Refresher Training
    Franchisees, managers, or employees may be required to attend further training sessions or seminars. These can be up to three times per year, typically lasting two days each, and are attended at the franchisee’s expense.

Territory Protection

HTeaO provides its franchisees with a “Protected Area” within which the franchisor agrees not to operate or allow another franchisee to operate a competing HTeaO store.

This area is typically outlined in Attachment B of the Franchise Agreement and may be defined by geographic description, radius, or a visual map. However, the franchisor may still distribute products through other channels, such as supermarkets, the internet, or third-party vendors, which are not limited by this territorial protection. Despite the assignment of a Protected Area, HTeaO retains several important rights.

These include the right to operate or franchise in captive markets like malls and airports, as well as the right to distribute branded products through alternative channels even within the franchisee's designated area. Additionally, territorial protections may be modified or revoked if the franchisee defaults on their obligations under the agreement.

Number of units

2024
Franchised units

35

57

94

Company-owned units

4

5

7

Total units

39

62

101

Competitors

Happy Lemon

Investment required
$298,000
-
$587,000
Franchisees
106
+
16%
16%

Haraz Coffee House

Investment required
$350,000
-
$518,000
Franchisees
14
+
n.a.
n.a.

Tiger Sugar

Investment required
$306,000
-
$542,000
Franchisees
47
+
147%
147%

Chatime

Investment required
$281,000
-
$494,000
Franchisees
10
+
-17%
-17%

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