It doesn't seem to be revealed anywhere officially, but based on fans' theory:
The "N" should be a word (that has similar pronunciation with) "Now".
Japanese fans found that all* characters in Hanayamata are related to Kamakura city in Kanagawa Prefecture, Japan.
From an anon user id 900RcZoqa on post no. 960 on 2channel,
全部地名
『ハナヤマタ』
関谷なる → 鎌倉市関谷
笹目ヤヤ → 鎌倉市笹目
常盤マチ → 鎌倉市常盤
西御門多美 → 鎌倉市西御門
All of them are name of places
"Hanayamata"
Naru Sekiya → Kamakura city, Sekiya
Yaya Sasame → Kamakura city, Sasame
Machi Tokiwa → Kamakura city, Tokiwa
Tami Nishimikado → Kamakura city, Nishimikado
that leaves Hana N. Fountainstand.
Turns out there's also a place in Kamakura city called Imaizumidai. Imaizumidai in Japanese is 今泉台. If each character is translated to English,
- 今 = Now
- 泉 = Fountain
- 台 = Stand
they match with "N. Fountainstand".
ハナ・N・フォンテーンスタンド → 鎌倉市今泉台(Now→今 fountain→泉 stand→台)
As for what does the "N" stand for, we can't really know, since as it's been mentioned, フォンテーンスタンド might be read as Fountainstand, Fontaine-Stand, Fonteyn-Stand, Founteyne-Stand, etc. Thus, the "N" might be Now, Nau, Naw, etc.
*Except Sachiko Yamanoshita. There's no Yama-no-shita in Kamakura city, but there's Yama-no-uchi and Saka-no-shita. (From Japanese Yahoo! Answers)
Also, there's someone who travelled around Kamakura to find these places. (1, 2)