The Alley
Food & Beverage · Coffee & Beverage
- Active units
- 8
- Royalty
- 7.0%
Franchised, year-end 2023
of weekly Net Sales
About The Alley
Originating in Taiwan, the company provides a variety of milk teas, fruit-infused drinks, and coffee through a brick-and-mortar business model. The menu emphasizes natural ingredients, such as house-made sugar cane syrup and pearls prepared from scratch. Its retail locations often feature modern interior designs and aesthetic beverage presentations to serve a customer base of young professionals and families. The franchise operates internationally with a presence in over twenty countries, offering both standalone shops and kiosk formats.
Key terms
- Franchise fee
$50k
- Brand fund
1.0% of Net Sales
- Local advertising
1.0% of Net Sales
- Footprint
1,000 – 3,000 sq ft
- Multi-Unit Development Agreement - Development Area Fee (per additional unit deposit)
$25k
- Veteran discount
Not offered
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing).
Growth
- Total locations76
Franchised units open at year-end
- New openings47
Gross new units opened during the calendar year
- 1-year unit growth rate153.3%
Net unit growth versus prior year
- 3-year unit CAGR151.7%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio47.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$387k
Average 2024 gross revenue for 28 franchisee facilities open the entire 2024 Measurement Period.
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$420k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open11 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate7.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio0.9×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.