How much does a HTeaO franchise cost?
Opening a HTeaO franchise takes a total initial investment of $259,870 to $1,976,620, according to the brand's 2024 Franchise Disclosure Document. The FDD's Item 19 reports median gross sales of $1,687,482 across 6 outlets.
HTeaO franchises Stores, food trucks under an HTEAO Food Truck License, and businesses inside Non-Traditional Venues. Category: Food & Beverage.
Item 7
What it costs to open a HTeaO franchise
The franchisor's own estimated initial investment, as disclosed in its 2024 FDD. The total is $259,870 to $1,976,620. Each line below carries the FDD page it was read from.
Where the money goes
The largest costs are Leasehold Improvements ($0 to $1,241,000), Equipment ($95,000 to $210,000), and Additional Funds ($10,000 to $100,000). Together they make up about 78% of the high-end estimate.
The initial franchise fee is $40,000, about 15% of the low-end total.
Our arithmetic from the Item 7 table below.
| Expenditure | Low | High | Source |
|---|---|---|---|
| Initial Franchise Fee2024 FDD, Item 7, p. 11 | $40,000 | $40,000 | 2024 FDD, Item 7, p. 11 |
| Rent (3 months)2024 FDD, Item 7, p. 11 | $9,000 | $42,000 | 2024 FDD, Item 7, p. 11 |
| Utility and Lease Security Deposits2024 FDD, Item 7, p. 11 | $2,200 | $16,000 | 2024 FDD, Item 7, p. 11 |
| Opening Day Promotion and Initial Marketing Campaign2024 FDD, Item 7, p. 11 | $10,000 | $20,000 | 2024 FDD, Item 7, p. 11 |
| Lease Negotiations Assistance2024 FDD, Item 7, p. 11 | $0 | $3,000 | 2024 FDD, Item 7, p. 11 |
| Design and Architectural Fees2024 FDD, Item 7, p. 11 | $31,670 | $68,620 | 2024 FDD, Item 7, p. 11 |
| Licenses and Permits2024 FDD, Item 7, p. 11 | $1,000 | $6,000 | 2024 FDD, Item 7, p. 11 |
| Leasehold Improvements2024 FDD, Item 7, p. 11 | $0 | $1,241,000 | 2024 FDD, Item 7, p. 11 |
| Signage2024 FDD, Item 7, p. 11 | $10,000 | $70,000 | 2024 FDD, Item 7, p. 11 |
| Furniture and Fixtures2024 FDD, Item 7, p. 11 | $35,000 | $55,000 | 2024 FDD, Item 7, p. 11 |
| POS/ | $6,000 | $22,000 | 2024 FDD, Item 7, p. 11 |
| Equipment2024 FDD, Item 7, p. 12 | $95,000 | $210,000 | 2024 FDD, Item 7, p. 12 |
| Professional Services2024 FDD, Item 7, p. 12 | $3,000 | $6,000 | 2024 FDD, Item 7, p. 12 |
| Initial Inventory2024 FDD, Item 7, p. 12 | $1,000 | $55,000 | 2024 FDD, Item 7, p. 12 |
| Insurance2024 FDD, Item 7, p. 12 | $4,000 | $12,000 | 2024 FDD, Item 7, p. 12 |
| Training Expenses2024 FDD, Item 7, p. 12 | $2,000 | $10,000 | 2024 FDD, Item 7, p. 12 |
| Additional Funds2024 FDD, Item 7, p. 12 | $10,000 | $100,000 | 2024 FDD, Item 7, p. 12 |
| Total estimated initial investment2024 FDD, Item 7, p. 11-12 | $259,870 | $1,976,620 | 2024 FDD, Item 7, p. 11-12 |
Source HTeaO, 2024 FDD, Item 7, p. 11-12, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-16.
Item 19
What HTeaO franchisees actually report earning
Median Gross Sales
$1,687,482
HTeaO's 2024 FDD, Item 19, for the January 1, 2023, through December 31, 2023. Basis: Free-standing franchised and company-owned Stores.
Sample size: 6 outlets. The FDD also reports average gross sales of $1,846,363. We lead with the median because an average is pulled upward by the strongest outlets; the median is the middle outlet.
What the franchisor excluded from this figure
- The FDD did not include information about any Stores that opened after July 1, 2023.
- The FDD did not include information about the non-freestanding Stores (two Franchised Stores and one Company-owned Store) that operated in strip malls or shopping centers.
- The FDD excluded Non-Traditional stores that operate as a mobile tea truck and venue-based stores because the operations are impacted by seasonality and are not open consistently though out the year.
This is a disclosure of what some existing outlets reported, not a projection of what a new HTeaO outlet would earn. Your results will differ.
Source HTeaO, 2024 FDD, Item 19, p. 38-39, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-16.
Item 20
How many HTeaO outlets there are, and how many closed
HTeaO ended 2023 with 94 franchised outlets and 7 company-owned outlets. In that year 38 franchised outlets opened and 1 left the system.
Three years at a glance
From 2021 through 2023, HTeaO opened 77 franchised outlets and 2 outlets left the system. That is a net gain of 75, from 19 to 94 franchised outlets. Of the outlets that left, 2 were bought back by the franchisor.
On average, about 1.8% of franchised outlets left the system each year, roughly 1 in 56.
Our arithmetic from the FDD's Item 20 table below. "Left the system" counts every outlet the franchisor reports as terminated, not renewed, bought back, or closed for other reasons.
| Year | Start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | End | Source |
|---|---|---|---|---|---|---|---|---|
| 2023 | 57 | 38 | 0 | 0 | 1 | 0 | 94 | 2024 FDD, Item 20, p. 41 |
| 2022 | 35 | 23 | 0 | 0 | 1 | 0 | 57 | 2024 FDD, Item 20, p. 41 |
| 2021 | 19 | 16 | 0 | 0 | 0 | 0 | 35 | 2024 FDD, Item 20, p. 41 |
Source HTeaO, 2024 FDD, Item 20, p. 41-42, via Public FDD bucket (storage.googleapis.com/franchiseindx_fdds) (source record). Figures read and verified 2026-09-16.
Compare
How HTeaO compares with other Food & Beverage franchises
Measured against the 256 Food & Beverage franchises on this site, using each brand's own FDD.
- Cost to open. The middle of HTeaO's estimated range is $1,118,245. It costs more to open than 75% of Food & Beverage franchises here.
- Outlets leaving each year. 1.8% for HTeaO. That is lower than 84% of the 165 Food & Beverage franchises with at least 10 outlets.
- Three-year growth. HTeaO's franchised system grew 395%. The typical Food & Beverage franchise here grew 4.4%.
- Earnings disclosure. 152 of the 256 Food & Beverage franchises here publish earnings figures in Item 19. HTeaO is one of them.
Our arithmetic from each brand's Item 7 and Item 20. Growth and departure comparisons leave out brands with fewer than 10 outlets, where one opening or closure distorts the figures. See every Food & Beverage franchise side by side.
Alert me when HTeaO files a new FDD
Franchisors reissue their FDD at least once a year, and the Item 7 and Item 19 figures move. Leave an email and we will send you HTeaO's updated numbers when the next document is published, plus the brand-comparison worksheet.
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