HTeaO franchise
2025 filing · April 30, 2025GrowingShares sales figures
HTeaO at a glance
A drive-thru and walk-in store selling iced tea in many flavors, plus related products. At the end of 2024 there were 144 HTeaO locations in the US, 131 franchised and 13 company-owned.
The business
- Industry
- Food
- Franchisor
- HTEAO FC, LLC
- The company that sells the franchises
- Franchising since
- 2018
- 7 years of selling franchises
- Typical size
- 1,500–3,000 sq ft
What you pay
- Cost to open
- $387K–$1.9M
- A freestanding HTeaO store
- Franchise fee
- $40,000
- $25,000 for a non-traditional venue
- Royalty
- 6%
- 6% of gross revenue, paid weekly, plus up to 2% to the brand development fund and at least 2% on local marketing
- Brand fund
- Yes
- Up to 2% of gross revenue
- Renewal fee
- See terms
- 50% of the then-current initial franchise fee
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 144
- Franchised and company-owned
- Franchised
- 131
- Company-owned
- 13
- Change in 3 years
- +96
- Franchised locations, 2022–2024
Support and records
From HTEAO FC, LLC’s 2025 filing; revenue and net loss from its audited financial statements, page 59; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
HTeaO among all franchises with the same figure.
| Figure | HTeaO | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,144,667 | Costs more than 86% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 144 | More than 82% of franchises |
How much a HTeaO franchise costs
Opening a freestanding HTeaO store costs an estimated $387,083 to $1,902,251. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: HTEAO FC, LLC, 2025 filing, page 1
HTeaO franchise fee
The franchise fee is $40,000, $25,000 for a non-traditional venue. You pay it when you sign the franchise agreement.
Source: HTEAO FC, LLC, 2025 filing, page 10
Royalty and ongoing fees
| Royalty | 6% of gross revenue, paid weekly, plus up to 2% to the brand development fund and at least 2% on local marketing. |
|---|---|
| Brand or marketing fund | Up to 2% of gross revenue. |
| Transfer Fee | $1,500 |
| Renewal Fee | 50% of the then-current initial franchise fee |
| Local Marketing Expenditure | At least 2% of Gross Revenue, measured on a semi-annual basis |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: HTEAO FC, LLC, 2025 filing, page 10
Other fees as filed, from pages 11–12. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures HTeaO publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: HTEAO FC, LLC, 2025 filing, page 43
- Estimate Estimated yearly sales per location
- $1.2M–$2.1M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
SBA loans to HTeaO franchisees
Lenders approved 84 SBA-backed loans for HTeaO franchisees from 2019 to 2026, $81.7M in all: 61 7(a) loans and 23 504 loans. All 7 that have ended were paid in full; none was charged off. The other 77 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2024 / 2022–2024. Typical means the median: half of brands are above it, half below.
| Measure | HTeaO | Typical food brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +39% / +274% | +0.4% / +7.5% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 2.1% / 5.7% | 2.9% / 13% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 3.2% / 14% | 0% / 0% | 0% / 0% |
Typical food brand is the median of the 398 brands in food franchises with three years of counts.
How HTeaO compares
Of the 1144 food franchises on this site, HTeaO is the 639th cheapest to open and the 152nd largest by number of locations.
| Figure | HTeaO | Typical food brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $387K | $348K | $222K |
| Cost to open, high end | $1.9M | $735K | $477K |
| Franchise fee | $40K | $35K | $40K |
| Royalty | 6% | 5.5% | 6% |
| US locations | 144 | 14 | 21 |
| Shares earnings figures | Yes | 672 of 1144 | 2,147 of 3,352 |
Typical is the median across the 1144 brands in food franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2022 | 57 (+22) | 5 | +23 | −1 |
| 2023 | 94 (+37) | 7 | +38 | −1 |
| 2024 | 131 (+37) | 13 | +42 | −5 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: HTEAO FC, LLC, 2025 filing, page 46
Who owns HTeaO?
HTeaO franchises are sold by HTEAO FC, LLC.
From HTEAO FC, LLC’s 2025 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: HTEAO FC, LLC, 2025 filing, litigation on page 9, bankruptcy on page 10
HTeaO filings
The figures on this page come from HTEAO FC, LLC’s 2025 filing, issued April 30, 2025, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | April 30, 2025 | NASAA depository | Costs, fees and locations, 2022–2024 |
Each link opens the filing as a PDF. See the newest filings across all brands.
