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The Alley
The Alley is a quick-service restaurant franchise specializing in uniquely flavored tea products, slush drinks, and other menu items offered for on-premises dining, carryout, and delivery. The franchisor offers single-unit franchises and multi-unit area development agreements for restaurants typically located in high-traffic retail areas like strip shopping centers, malls, or nontraditional venues. It targets consumers in competitive markets seeking innovative beverages, competing with other bubble tea and food establishments.
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Franchise Costs
7% royalty + 1% brand development fund (currently not charged) + up to $500/mo technology fee (currently not charged)
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataThe Alley Franchise Analysis
Bubble tea is exploding, and The Alley is positioning itself as a fresh contender with innovative slush drinks and teas in nontraditional spots like malls. The 2024 FDD teases robust expansion ambitions and a handful of SBA-backed deals, hinting at real investor interest despite the brand's youth. But in a crowded market, does this franchisor's early momentum hold up under scrutiny?
Item 7 lays out the initial investment at $400,000-$743,000, covering buildout for high-traffic setups—think strip centers or kiosks—with a flat $50,000 franchise fee. Ongoing fees hit 7% royalty plus 1% brand fund (currently waived) and up to $500/month tech fee (also not charged yet), keeping early cash flow lighter. No Item 19 means no disclosed revenues or profits, a red flag for a system this new (franchising since 2021), forcing buyers to dig into alternatives like SBA data: 6 loans averaging $578,100 signal banks see viability.
System stats show promise with 8 franchised and 1 corporate unit, jumping from 4 locations in 2022 to 6 in 2023 (+50% growth) and projecting 21 new units. Just 1 termination suggests stability so far, but the small footprint means higher risk—multi-unit deals could accelerate if you scale. For beverage investors eyeing trendy drinks, the numbers point to a high-upside play if execution matches the hype, though lack of financials demands extra diligence on local markets.
Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How The Alley Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
The Alley Current | $400K – $743K | $50K | 7.0% | 8 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for The Alley franchisees (2023 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
6 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
39 franchisee contacts on file from official FDD filings.
39 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a The Alley franchise ranges from $400,000 to $743,000. This includes a franchise fee of $50,000. Ongoing royalty fees are 7.0% of gross sales.
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