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.
KEY FRANCHISE STATS
Franchisees
?
94
+
169%
169%
Franchise fee
?
$40,000
Investment
?
$260,000 - $1,977,000
Revenue (AUV)
?
Undisclosed
$1,372,000
+
n.a.
n.a.
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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
The initial investment required for a HTeaO franchise is $260,000 - $1,977,000. That is the total cost you would need to finance 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
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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
Below is HTeaO's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
HTeaO had 101 total units in 2024, of which 94 were franchised-owned and 7 company-owned.
HTeaO provides a structured and multi-phase training program designed to prepare franchisees and their teams for store operations. These programs include:
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.
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.
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.
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