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HTeaO Franchise FDD, Costs & Fees (2025)

HTeaO offers a variety of freshly brewed iced teas made from premium tea leaves, providing a refreshing and healthy beverage option with a focus on quality and flavor.

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
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

HTeaO

2024

Franchise Disclosure Document

Number of units

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.

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.

Competitors

Below are some of

HTeaO

key competitors in the

Coffee & Tea

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Sign up
Gross Profit
Sign up
EBITDA
Sign up

94

New
+
169%
169%

$40,000

$260,000

$1,977,000

n.a.

$1,372,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Mercato Cucina

Mercato Cucina is a foodservice franchise concept offering Italian-inspired fast-casual meals and marketplace items, serving local residents seeking refined yet convenient cuisine, and known for chef-crafted menus, fresh pastas and sauces, and an Italian deli–style experience with gourmet take-home products.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$199,000 - $346,000

Boba Nation

Boba Nation is a beverage franchise offering bubble tea, smoothies, and specialty drinks, serving younger consumers and families who enjoy customizable beverages, and known for extensive flavor combinations, vibrant store branding, and scalable formats designed to capture growing boba demand.

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$350,000 - $495,000

Parlay Cafe

Parlay Cafe is a hybrid café and coworking franchise offering specialty coffee, light bites, and flexible workspace, serving remote professionals, entrepreneurs, and small teams, and known for memberships, meeting rooms, and thoughtfully designed spaces combining café comfort with business amenities.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$203,000 - $459,000

Puffles

Puffles is a dessert-and-beverage franchise offering Hong-Kong-style egg waffles, customizable ice cream treats and bubble tea, serving dessert lovers and social café customers, and known for trendy format, fun social-media appeal and low investment.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$112,000 - $296,000

Tea Lounge

Tea Lounge is a café franchise offering specialty teas, bubble tea, and light café fare in stylish modern settings, serving younger consumers and café-seekers, and known for trendy ambiance, customizable drinks and franchise-ready formula.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$276,000 - $406,000

Front Porch Cafe

Front Porch Café is a café franchise offering freshly roasted coffee, breakfast and light lunch fare in a community-oriented environment, serving coffee lovers and local patrons, and known for purpose-driven culture, scalable café footprint, and valued franchise support.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$189,000 - $348,000

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