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

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
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.

Competitors

Tom n Toms Coffee

Tom n Toms Coffee is a café franchise offering espresso drinks, pretzels, breads, and light bites, serving students and urban professionals, and known for spacious cafés, extended hours, and a Korean coffeehouse heritage.

Franchisees

?

12
+
71%
71%
Investment

?

$370,000 - $487,000

Feng Cha

Feng Cha is a tea café franchise offering handcrafted milk teas, fruit teas, and desserts, serving tea lovers and social café guests, and known for creative toppings, seasonal menus, and modern, photogenic store designs.

Franchisees

?

72
+
188%
188%
Investment

?

$194,000 - $512,000

illy

illy is a premium café franchise offering espresso beverages, coffee, pastries, and packaged products, serving coffee connoisseurs and travelers, and known for Italian espresso heritage, design-driven cafés, and consistently high-quality blends.

Franchisees

?

17
+
31%
31%
Investment

?

$402,000 - $2,006,000

Ding Tea

Ding Tea is a bubble tea franchise offering milk teas, fruit teas, and specialty drinks, serving boba enthusiasts and casual café guests, and known for customizable sweetness, premium teas, and an international brand footprint.

Franchisees

?

135
+
16%
16%
Investment

?

$195,000 - $324,000

Qahwah House

Qahwah House is a specialty coffee shop franchise offering authentic Yemeni coffee, baked goods, and café experiences, serving coffee enthusiasts and communities, and known for premium sourcing, cultural heritage, and welcoming hospitality.

Franchisees

?

18
+
500%
500%
Investment

?

$573,000 - $939,000

Kahala Coffee Traders

Kahala Coffee Traders is a coffee shop franchise serving premium coffee, espresso drinks, teas, and baked goods, backed by franchisor support, extensive training, and efficient operational systems.

Franchisees

?

5
+
67%
67%
Investment

?

$88,000 - $517,000