HTeaO, the booming Fort Worth-based fresh-brewed iced tea franchise, on Tuesday released highlights of the first Item 19 from its 2023 Franchise Disclosure Document. Featured prominently is the brand's robust average unit volume of $1.35 million with more than 75 open locations with a pipeline of more than 100 additional sites secured and under construction.
“Our Item 19 clearly reflects the attractiveness of our concept and demonstrates the immense potential and profitability HTeaO offers to franchisees," said HTeaO CEO Justin Howe in a statement. “HTeaO stands out in the market because there is truly nothing else like it. This brand has ignited excitement nationwide with more unit openings and agreements signed, as existing and aspiring entrepreneurs have joined the system to take advantage of this viable franchise business opportunity with significant growth potential and scalability.”
Item 19 is a specific section in the Franchise Disclosure Document that provides financial performance representations or earnings claims about the actual or potential financial performance of a franchise.
The purpose of Item 19 is to give prospective franchisees important information about the financial aspects of the franchise opportunity, allowing them to assess the potential profitability and earnings of the franchise they are considering.
Potential investors or lenders often evaluate the AUV as an indicator of the financial viability and growth potential of a business. Higher AUV figures are generally seen as more attractive, indicating a strong customer base and revenue generation potential.
HTeaO, headquartered in an office on Markum Ranch Road in west Fort Worth, with a warehouse near Meacham International Airport on the North Side, is kind of like Starbucks but dealing primarily in iced tea.
HTeaO launched officially in 2018 after years of planning. Business is booming with over-the-top demand for the company’s 26 current flavors, all made naturally — no powders or syrups — and with water from a proprietary water plant onsite at each location. To have good tea, after all, requires good water that tastes the same, regardless of the city.
The company has also created its own supply chain to ensure each store receives all essential products while trying to keep costs down.
The company is among the fastest growing in the Southwest, ranking No. 59 in Inc. magazine’s list of private companies based in Texas, Arizona, New Mexico, and Oklahoma. The listing recognizes up-and-coming fast-growth companies in key regions across the country.
HTeaO, one of 166 companies recognized for its growth from 2019-21 and southwest expansion, experienced a two-year revenue growth of 240%.
In addition, the brand, according to company officials, has a strong growth pipeline in place with more than 100 sites under construction and hundreds of additional candidates applying to join the system.
The company expects to have 95 locations open by year end. Moreover, the brand projects to award a record number of franchise agreements in 2024.
“HTeaO is on track to be established as the ultimate destination for tea lovers across the nation as more and more franchisees join the franchise system and expand the brand into new markets and states,” said Andrew Hawes, HTeaO chief development officer. “With a first-to-market franchise model, proven system, unmatched support, and attractive AUV numbers, we anticipate a strong end to 2023 that will carry over well into the next year.”
