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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
7% royalty + 1% brand development fund (currently not charged) + up to $500/mo technology fee (currently not charged)
Franchise Stats
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
How The Alley Compares to Other Fast Food Franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
The Alley Current | $400K - $743K | $50K | 7.0% | 8 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 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
SBA Loan History
Historical SBA 7(a) loan data for The Alley franchisees (2023 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a The Alley franchise?
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.
How many The Alley franchise locations are there?
As of the 2024 FDD, The Alley has 8 franchise locations. The company has been franchising since 2021.
Can you get an SBA loan for a The Alley franchise?
Yes, SBA loans are available for The Alley franchises. Historical data shows 6 SBA 7(a) loans have been approved for The Alley franchisees, with an average loan amount of $578,100. The historical default rate is 0.0%.
Is The Alley a good franchise to buy?
The Alley shows several positive indicators: low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in The Alley?
Talk to a franchise advisor to get personalized guidance and learn if The Alley is the right fit for you.
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