Desi District
Bottom line
- Total investment $669K – $2.5M including a $30K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $3.9M/year (median $2.6M).
- Rated MODERATE with a risk score of 63/100.
- Emerging franchise — only 2 years of franchising with 5 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Desi District unit return on the cash you put in?
Unlevered ROIC · per unit
40%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Desi District units return on equity?
Equity IRR · 5-yr
23.9%
2.92× MOIC
Year-1 DSCR
3.61×
EBITDA ÷ debt service
Equity required
$25.1M
on $43.0M purchase
Total debt
$17.9M
SBA $5.0M + senior + seller note
Overview
About
Desi District franchisees operate South Asian cuisine restaurants or quick-service establishments, managing daily food preparation, customer service, inventory, and staffing. Franchisees are responsible for local marketing, hiring/training, and maintaining brand standards across dine-in and/or takeout operations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Desi District is an early-stage franchise with unclear unit economics, undisclosed profitability data, and corporate financial concerns that make this a speculative investment requiring extensive validation.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 5 units in system with unknown growth trajectory indicates minimal scale and unproven model replication
- 02MEDNet income not disclosed in Item 19 prevents ROI analysis — cannot validate if $3.9M avg revenue translates to acceptable profitability
- 03HIGHGoing Concern status is False, suggesting potential financial instability at corporate level
- 04MINORWide investment range ($669K-$2.5M) indicates unclear unit economics and inconsistent buildout costs
- 05MEDExtremely high per-unit capital requirement relative to unit count suggests early-stage franchise with limited operational history
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Desi District · FDD (2024) PDF