HTeaO Franchise FDD, Profits & Costs (2025)
HTeaO, an innovative iced tea franchise, was founded in Amarillo, Texas, in 2009 by Justin Howe and Gary Hutchens. Initially conceived as an addition to a family restaurant to boost traffic during the economic downturn, the concept quickly gained popularity.
By 2018, the first corporate store opened in Midland, Texas, and franchising began in 2019. The company is now headquartered in Fort Worth, Texas, where it continues to expand across the U.S., with over 68 locations already in operation and more than 425 franchise licenses awarded.
The franchise offers a unique drive-thru experience centered around 24 handcrafted iced tea flavors, brewed fresh in-store using 100% natural ingredients and a proprietary water filtration system.
Customers can customize their beverages at self-serve stations, creating a memorable and personalized experience. HTeaO also sells related products such as Yeti merchandise, snacks, and bottled water, appealing to a broad customer base.
Initial Investment
How much does it cost to start a HTeaO franchise? It costs on average between $260,000 – $1,977,000 to start a HTeaO franchised restaurant.
This cost includes various expenses such as the initial franchise fee, construction, equipment, and other startup costs.
| 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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Frequently Asked Questions
How many HTeaO locations are there?
As of the latest data, HTeaO has approximately 68 operational locations across various states, including Texas, Florida, Kansas, New Mexico, and Oklahoma. The brand has awarded over 425 franchise licenses, with 93 additional units currently under development.
What is the total investment required to open a HTeaO franchise?
The total investment required to open a HTeaO franchise ranges from $260,000 to $1,977,000.
What are the ongoing fees for a HTeaO franchise?
HTeaO franchisees pay a 6% royalty fee on gross sales, along with a 1% marketing fee. These fees support the franchisor’s services and brand-wide advertising efforts.
Who owns HTeaO?
HTeaO is primarily owned by Justin Howe, who is also the CEO and one of the co-founders of the company. Additionally, private equity firms Crux Capital and Trive Capital hold a minority stake in the company. Their investment supports the franchise’s expansion efforts and operational growth across the U.S.
Disclaimer
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