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

Sign up for free to access detailed 2,400 franchises investment tables, including this one.

Our free plan includes:
2,400+ franchises profiles
1 FDD download per month
Detailed investment tables
Create a free account

Franchise Disclosure Document

Sign up to download this FDD

Sign up for free to get access to:

2,400+ franchises

?

Franchise overview

?

Essential financial data

?

Detailed investment table

?

Download 1 FDD per month

?

Sign up for free
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
You're on the Free plan 🎉

You have 0 FDDs left to download this month

Download the FDD

Upgrade to Pro to download 5,000+ FDDs and more.

Competitors

Below are some of

HTeaO

key competitors in the

Coffee & Tea

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

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.

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Upgrade to Pro to get access to:
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

See our plans

A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

Darren M.

Franchisee

Been waiting for years for this. All the most important franchises and their latest Franchise Documents to download. The team also updates the franchises very quickly.

Emily V.

Franchisee

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

Kahala Coffee Traders

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000

It's Boba Time

Franchisees

?

76
+
62%
62%
Investment

?

$466,000 - $597,000

7 Leaves

Franchisees

?

14
+
17%
17%
Investment

?

$244,000 - $490,000

Junbi

Franchisees

?

5
+
150%
150%
Investment

?

$269,000 - $576,000

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Get unlimited access to:
2,400+ franchises data
Number of locations
Franchise fees
Total investment

?

Download unlimited FDDs
Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit metrics

?

Upgrade to Pro