About HTEAO Franchise
HTEAO is a specialty tea franchise offering an extensive menu of freshly brewed iced teas, flavored teas, and tea based beverages served in a fast casual, drive through friendly format.
The brand has carved out a unique position in the beverage franchise space by focusing exclusively on tea, providing an alternative to the coffee shop concepts that dominate the market.
The initial franchise fee ranges from $25,000 to $40,000.
HTEAO Franchise Cost & Fees
Minimum Investment
$238K
Average Investment
$1.1M
Maximum Investment
$1.9M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 to $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Total Investment Range | $238,200 – $1,927,500 | Includes build-out, inventory, working capital |
The investment range of $238K–$1.9M reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 6% of Gross Revenue of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee(1,17) | $40,000 | $40,000 |
| Rent (3 months)(2) | $9,000 | $30,000 |
| Utility and Lease Security Deposits(2) | $2,200 | $7,500 |
| Opening Day Promotion and Initial Marketing Campaign(3) | $10,000 | $20,000 |
| Lease Negotiations Assistance (4) | $0 | $3,000 |
| Design and Architectural Fees(5) | $10,000 | $40,000 |
| Licenses and Permits | $1,000 | $6,000 |
| Leasehold Improvements(6) | $0 | $1,241,000 |
| Signage(7) | $10,000 | $70,000 |
| Furniture and Fixtures(8) | $35,000 | $55,000 |
| POS/Back Office System(9) | $6,000 | $22,000 |
| Equipment | $95,000 | $210,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $100 |
| Renewal Fee | 50% of the then-current initial franchise fee |
| Technology Fee | Currently, up to $450 per month, or $5,400 per calendar year (which limitation i |
| Audit Fee | Payable only if the audit was necessary because of your failure to report to us |
| Brand Development Fund Contribution | Generally, up to 2% of Gross Revenue but we have the right to increase your cont |
| Local Marketing Expenditure | At least 2% of Gross Revenue, measured on a semi-annual basis |
| Additional Training; Remedial Training | $500 |
| Mandatory Ongoing Training and Seminars | $500 |
| Franchisee Conventions | $500 |
| Nonsufficient Funds Fee | $100 |
| Interest/Late Fee | 18% per year or the maximum lawful rate |
| Administrative Fee | $250 |
| Intranet Fee | $83.33 |
| Insurance Premium Reimbursement | $500 |
| Mystery Shopper Programs | $150 |
| Step-In Rights | Not to exceed 10% of Gross Revenue plus travel and lodging expenses for our pers |
| Site Selection Extension | $3,000 |
| Opening Date Extension | $3,000 |
| Extension Fee | $3,000 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | If you are in good standing, you can renew for two additional consecutive five-year terms. |
| Termination for Cause | We can terminate the franchise agreement for cause, or on account of the for-cause termination of any other franchise agreement between you and us. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
HTEAO Franchise Earnings — Item 19
Average Revenue
$1.7M
Median Revenue
$1.5M
Revenue Range
$1.3M – $1.5M
Sample Size
22 units
Past financial performance does not guarantee future results. Individual results will vary.
HTEAO Litigation & Risk Flags
Clean Litigation RecordHTEAO has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
HTEAO System Growth
Total Units
22
Franchised
21
Company-Owned
1
HTEAO currently operates 21 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
HTEAO Franchise — FAQ
The total investment to open a HTEAO franchise ranges from $238,200 to $1,927,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000 to $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
HTEAO charges a royalty fee of 6% of Gross Revenue of gross sales. These fees are paid on an ongoing basis.
You can download the HTEAO Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from HTEAO to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, HTEAO franchise owners report average revenue of $1.7M and median revenue of $1.5M. This is based on a sample of 22 units. Past performance does not guarantee future results.
HTEAO has been offering franchise opportunities. The FDD shows an investment range of $238,200-$1,927,500, a 6% of Gross Revenue royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 to $40,000 and the total investment ranges from $238,200 to $1,927,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from HTEAO and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with HTEAO or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com