Desi DistrictFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Desi District franchise requires a total initial investment of $669K – $2.5M, including a $30K franchise fee and an ongoing 4.0% royalty[2]. Per the 2024 FDD, average unit revenue was $4.0M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $669K – $2.5M
- 90th pct Service Resta…
- Avg gross sales
- $4.0M
- 58th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 5
- 22nd pct Service Resta…
- SBA default
- N/A
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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $669K – $2.5M including a $30K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $4.0M/year.
- Verdict A (Top Quintile) with a risk score of 47/100.
- 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
- Legal entity
- Desi District Franchise Group, LLC
- Incorporated in
- DE
- HQ
- 13389 Marmolada Drive, Frisco, TX 75035
- Auditor
- Omar Alnuaimi, CPA (NAPER CPA GROUP)
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
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.
- CEO
- Sridhar Chigurupati
- Headquarters
- TX
- Founded
- 2024
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $75K | $250K |
| Equipment, build-out, other | $564K | $2.2M |
| Total initial investment | $669K | $2.5M |
Source: Desi District 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$727K
18.0% margin
Unlevered ROIC
42%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $669K – $2.5M
- Below avg, review vs category
- Liquid capital req'd
- $75K – $250K
- Below avg, review vs category
- Franchise fee
- $30K – $40K
- Better than avg vs category
- Royalty
- 4.0%
- 4% of your gross sales · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 4.0% of rev |
A 4.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $4.0M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Company Owned Outlets
- Sample size
- 5 units
- vs category median 28 · small
- Range (low → high)
- $546K→$7.5M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Desi District Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
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 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Audited financials (Item 21)
Yes · Omar Alnuaimi, CPA (NAPER CPA GROUP)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 47 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 52 hrs
- POS system
- TOAST - Eatery POS; Block POS - Market POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TOAST - Eatery POS; Block POS - Market POS
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Desi District · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Desi District franchise?
The total investment to open a Desi District franchise ranges from $669K – $2.5M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Desi District franchise owners earn?
According to Item 19 of the Desi District FDD, the average gross sales per unit is $4.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Desi District's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Desi District (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 Desi District franchise locations are there?
As of their most recent FDD filing, Desi District has 5 total units in the United States, including 0 franchised units and 5 company-owned units.
Is Desi District a good franchise to buy?
FranchiseVerdict rates Desi District as a A-grade franchise with a risk score of 47 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
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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.