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.

Item 7, Estimated Initial Investment (HTeaO, 2024 FDD)
ExpenditureLowHighSource
Initial Franchise Fee2024 FDD, Item 7, p. 11$40,000$40,0002024 FDD, Item 7, p. 11
Rent (3 months)2024 FDD, Item 7, p. 11$9,000$42,0002024 FDD, Item 7, p. 11
Utility and Lease Security Deposits2024 FDD, Item 7, p. 11$2,200$16,0002024 FDD, Item 7, p. 11
Opening Day Promotion and Initial Marketing Campaign2024 FDD, Item 7, p. 11$10,000$20,0002024 FDD, Item 7, p. 11
Lease Negotiations Assistance2024 FDD, Item 7, p. 11$0$3,0002024 FDD, Item 7, p. 11
Design and Architectural Fees2024 FDD, Item 7, p. 11$31,670$68,6202024 FDD, Item 7, p. 11
Licenses and Permits2024 FDD, Item 7, p. 11$1,000$6,0002024 FDD, Item 7, p. 11
Leasehold Improvements2024 FDD, Item 7, p. 11$0$1,241,0002024 FDD, Item 7, p. 11
Signage2024 FDD, Item 7, p. 11$10,000$70,0002024 FDD, Item 7, p. 11
Furniture and Fixtures2024 FDD, Item 7, p. 11$35,000$55,0002024 FDD, Item 7, p. 11
POS/Back Office System2024 FDD, Item 7, p. 11$6,000$22,0002024 FDD, Item 7, p. 11
Equipment2024 FDD, Item 7, p. 12$95,000$210,0002024 FDD, Item 7, p. 12
Professional Services2024 FDD, Item 7, p. 12$3,000$6,0002024 FDD, Item 7, p. 12
Initial Inventory2024 FDD, Item 7, p. 12$1,000$55,0002024 FDD, Item 7, p. 12
Insurance2024 FDD, Item 7, p. 12$4,000$12,0002024 FDD, Item 7, p. 12
Training Expenses2024 FDD, Item 7, p. 12$2,000$10,0002024 FDD, Item 7, p. 12
Additional Funds2024 FDD, Item 7, p. 12$10,000$100,0002024 FDD, Item 7, p. 12
Total estimated initial investment2024 FDD, Item 7, p. 11-12$259,870$1,976,6202024 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.

Item 20, Status of Franchised Outlets (HTeaO, 2024 FDD)
YearStartOpenedTerminatedNon-renewedReacquiredCeased, otherEndSource
202357380010942024 FDD, Item 20, p. 41
202235230010572024 FDD, Item 20, p. 41
202119160000352024 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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