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.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one The Alley unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
6
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 47 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Alley · FDD (2024) PDF