The AlleyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Alley franchise requires a total initial investment of $400K – $743K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $400K – $743K
- 73rd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 7.0%
- 80th pct Service Resta…
- Units
- 9
- 33rd pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $400K – $743K including a $50K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 90/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Alley LLC
- Incorporated in
- NV
- HQ
- 3271 E Warm Springs Rd., Las Vegas, Nevada 89120
- Auditor
- Chen & Fan Accountancy Corporation
- Audited financials
- Franchisor revenue
- $232K
- vs $456K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Affiliated brands
- Nova Concept
- Aveeka
Other brands the franchisor or its parent operates (Item 1).
Overview
About
The Alley is a beverage-focused QSR franchise (likely tea/bubble tea based on brand name) where franchisees operate standalone or co-located retail locations, managing POS operations, inventory, beverage preparation, and customer service. Day-to-day responsibilities include staff scheduling, product quality control, and local marketing to drive transaction volume against the 7% royalty obligation.
- CEO
- Mao-Ting Chiu
- Headquarters
- NV
- Founded
- 2020
- FDD year
- 2024
- States available
- 6
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Rent - 1st Monthnot refundable | $18K | $54K | |
| Lease & Utility Security Deposit | $7K | $25K | |
| Design & Architect Feesnot refundable | $10K | $15K | |
| Leasehold Improvementsnot refundable | $150K | $350K | |
| Building Materialsnot refundable | $30K | $50K | |
| Signagenot refundable | $4K | $8K | |
| Equipmentnot refundable | $35K | $70K | |
| Furniture and Fixtures Office Set Upnot refundable | $5K | $10K | |
| Point of Sale & Computer Equipment Internet, Phone, Securitynot refundable | $7K | $12K | |
| Business Licenses & Permitsnot refundable | $4K | $5K | |
| Professional Feesnot refundable | $3K | $5K | |
| Insurance - 3 Monthsnot refundable | $3K | $5K | |
| Initial Inventorynot refundable | $40K | $50K | |
| Initial Trainingnot refundable | $15K | $15K | |
| Grand Opening Marketingnot refundable | $15K | $20K | |
| Staff Travel Expenses Prior to Opening or During Grand Openingnot refundable | $0 | $5K | |
| Additional Funds - 3 monthsnot refundable | $18K | $30K | |
| Total initial investment | $412K | $779K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $400K – $743K
- Below avg, review vs category
- Liquid capital req'd
- $18K – $30K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Below avg, review vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $25K |
| Renewal fee | $10K |
| Inventory (initial) | $40K – $50K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How The Alley Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 7
- Last reporting year
- Closed
- 1
- Turnover rate
- 11.1%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 89%
- vs corporate-owned
- Net growth (yr3)
- +100.0%
- Net unit change last year
- 3-yr CAGR
- +166.7%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 16.7%
- Franchisor-initiated terminations
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Maryland
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $3.5M
- Median loan
- $563K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Alley's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage beverage concept with minimal disclosure of unit economics, unproven system profitability, and rapid growth that may not be sustainable.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $50,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Chen & Fan Accountancy Corporation⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 90 / 100 rating
- 01MEDNo average revenue or net income disclosed in FDD Item 19 — impossible to assess ROI on $400k-$743k investment
- 02MEDOnly 9 units system-wide suggests early-stage or niche concept with limited track record and operational maturity
- 03MINOR100% YoY unit growth could indicate aggressive expansion masking retention issues or cherry-picked data
- 04MINORHigh initial investment range ($343k spread) without corresponding financial performance metrics raises transparency concerns
- 05MED7% royalty on undisclosed sales makes financial projections unreliable for franchisee modeling
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory population | 250,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Nevada |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 153 hrs
- Training location
- On-site
- Site selection
- joint
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Alley · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Alley franchise?
The total investment to open a The Alley franchise ranges from $400K – $743K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Alley franchise owners earn?
The Alley does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is The Alley's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Alley (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many The Alley franchise locations are there?
As of their most recent FDD filing, The Alley has 9 total units in the United States, including 2 franchised units and 1 company-owned units. 7 new units were opened in the latest reporting year.
Is The Alley a good franchise to buy?
FranchiseVerdict rates The Alley as a F-grade franchise with a risk score of 90 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent The Alley, you can request corrections or provide updated information.
Claim this brandOther Quick-Service Restaurants franchises
Compare similar franchise opportunities in the Quick-Service Restaurants category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.