The Alley franchise

2024 filing · August 20, 2024Growing

The Alley at a glance

A tea shop serving flavored teas, milk teas and slush drinks. At the end of 2023 there were 9 The Alley locations in the US, 8 franchised and 1 company-owned.

The business

Industry: Bubble tea; Also listed in food
Franchisor: The Alley LLC; The company that sells the franchises
Who runs it: Manager; A trained manager can run it day to day
Franchising since: 2021; 3 years of selling franchises
Franchisor based in: Las Vegas, Nevada
Typical size: 1,000–3,000 sq ft

What you pay

Cost to open: $400K–$743K; Fee, build-out and opening working capital
Franchise fee: $50,000; Paid once, when you sign
Royalty: 7%; 7% of gross sales, paid monthly
Brand fund: None now; 1% of gross sales, not charged at present
Renewal fee: $10,000; When the agreement ends and you sign again
Agreement length: 5 years
Territory: Limited; Limited protection
Franchisor financing: None offered
SBA Franchise Directory: Listed; SBA-backed loans are possible

Where it is

US locations, 2023: 9; Franchised and company-owned
Franchised: 8
Company-owned: 1
Change in 2 years: +6; Franchised locations, 2021–2023
States: 4; Most in California, Texas and Colorado

Support and records

Shares sales figures: No; Ask current owners what a location makes
SBA loans approved: 7; 2023–2026
Lawsuits disclosed: None
Bankruptcy disclosed: None
Latest filing: Aug 20, 2024; 2024 filing

From The Alley LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.

Estimate your costs Model the payback

Where it ranks

The Alley among all franchises with the same figure.

Figure	The Alley	Among all franchises
Cost to open, midpointHalfway between the low and high estimate	$571,500	Costs more than 69% of franchises
Franchise feePaid once, when you sign	$50,000	Higher than 70% of franchises
RoyaltyShare of sales paid to the franchisor	7%	Higher than 70% of brands with a set rate
US locationsFranchised and company-owned	9	Fewer than 63% of franchises

How much a The Alley franchise costs

Opening one The Alley costs an estimated $400,000 to $743,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.

Source: The Alley LLC, 2024 filing, page 19

The Alley franchise fee

The franchise fee is $50,000. You pay it when you sign the franchise agreement.

Source: The Alley LLC, 2024 filing, page 10

Royalty and ongoing fees

Royalty	7% of gross sales, paid monthly.
Brand or marketing fund	1% of gross sales, not charged at present.
Technology	Up to $500 per month. Currently we do not charge a Technology fee
Transfer	$25,000
Renewal	$10,000
Local Marketing	Minimum of 1% of monthly Gross Sales.

The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.

Source: The Alley LLC, 2024 filing, page 12

Other fees as filed, from pages 12–14. The filing lists every fee, including late fees and audit costs.

Sales and earnings

No figures The Alley does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.

Source: The Alley LLC, 2024 filing, page 54

Estimate Estimated yearly sales per location: $520K–$910K

Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.

SBA loans to The Alley franchisees

Lenders approved 7 SBA 7(a) loans for The Alley franchisees from 2023 to 2026, $3.83M in all. All 3 that have ended were paid in full; none was charged off. The other 4 haven’t ended yet.

A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.

Source: SBA 7(a) and 504 loan data, as of September 30, 2026

How The Alley compares

Of the 56 bubble tea franchises on this site, The Alley is the 51st cheapest to open and the 23rd largest by number of locations.

Figure	The Alley	Typical bubble tea brand	Typical franchise
Cost to open, low end	$400K	$264K	$222K
Cost to open, high end	$743K	$502K	$477K
Franchise fee	$50K	$40K	$40K
Royalty	7%	5%	6%
US locations	9	8	21
Closed or left per year	16.7%	0%	–
Change in franchised locations, 2 yrs	+300%	+100%	–
Shares earnings figures	No	19 of 56	2,147 of 3,352

Typical is the median across the 56 brands in bubble tea franchises; typical franchise, across every brand here.

Locations opened and closed

3 opened

1 closed or left

Franchised locations, last 2 years

2021

1 opened0 closed or left

3 (+1)

2022

2 opened1 closed or left

4 (+1)

2023

8 (+4)

Year	Franchised	Company-owned	Opened	Closed
2021	3 (+1)	2	+1	0
2022	4 (+1)	2	+2	−1
2023	8 (+4)	1	–	–

Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.

See which brands grew most in the fastest-growing franchises rankings.

More in the guides: franchise failure rates.

Source: The Alley LLC, 2024 filing, page 55

Source filing (2024, PDF)

Where The Alley locations are

At the end of 2023, The Alley had franchised locations in 4 states. The most are in California, Texas and Colorado.

California4
Texas3
Colorado2
Arizona1

State	Franchised
California	4
Texas	3
Colorado	2
Arizona	1

Source: The Alley LLC, 2024 filing, page 55

Who owns The Alley?

The Alley franchises are sold by The Alley LLC. Its filing names no parent company.

From The Alley LLC’s 2024 filing, page 8.

Lawsuits and bankruptcy

Lawsuits and regulatory actions	None. The filing says no litigation has to be disclosed.
Bankruptcy	None. The filing says no bankruptcy has to be disclosed.

Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.

Source: The Alley LLC, 2024 filing, litigation on page 10, bankruptcy on page 10

Source filing (2024, PDF)