Desi District Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Desi District is a fast-casual franchise serving South Asian and Indian street food and dishes. Franchisees run the restaurants, managing food prep, staffing, and counter service.
FranchiseVerdict summary · 2026
A Desi District franchise requires a total initial investment of $669K – $2.5M, including a $30K – $40K franchise fee and an ongoing 4.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $669K – $2.5M
- 86th pct Service Resta…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 5
- 24th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $669K – $2.5M including a $30K franchise fee, 4.0% ongoing royalty.
- RETURNSItem 21 states the franchisor was formed 5/31/2024 and has not been in business three years; Exhibit F contains only an audited opening balance sheet dated 6/15/2024. No income statement or revenue figures are presented, and the balance sheet numbers were not present in the extracted text.
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- DATAItem 19 reports gross sales by location rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Desi District Franchise Group, LLC
- Parent company
- None
- CEO title
- Member
- Sridhar Chigurupati
- Incorporated in
- DE
- HQ
- 13389 Marmolada Drive, Frisco, TX 75035
- Auditor
- Naper CPA Group
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
- CEO
- Sridhar Chigurupati
- Headquarters
- TX
- Founded
- 2016
- FDD year
- 2024
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 141% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $669K – $2.5M
- Bottom third — review vs category
- Liquid capital req'd
- $75K – $250K
- Bottom third — review vs category
- Franchise fee
- $30K – $40K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · 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 |
| Inventory (initial) | $20K – $200K |
| Total fee load | 4.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Desi District did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Desi District unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
8%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 21 states the franchisor was formed 5/31/2024 and has not been in business three years; Exhibit F contains only an audited opening balance sheet dated 6/15/2024. No income statement or revenue figures are presented, and the balance sheet numbers were not present in the extracted text.
Company-owned outlets only - not franchisee performance
- Median gross sales
- $2.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
No system-wide average is published for this brand. The median and range below are what Item 19 supports; we show an average only where it reconciles against them.
- Item 19 type
- gross sales by location
- Sample size
- 5
- vs category median 20 · small
- Range (low → high)
- $546K→$7.5M
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 4.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Item 19 reports gross sales by location rather than annual gross sales, so unit revenue is not directly comparable.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Desi District Compares
Is the system healthy?
Source: FDD 2024 · Item 20
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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Naper CPA Group
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 45 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 4.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 5 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Frisco, Texas |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 75 hrs
- On-the-job training
- 52 hrs
- Training location
- Frisco, TX or Franchisee's Location
- Ongoing training
- Required
- Time to open
- 15 mo
- From signing to launch
- Site selection
- Franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- 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)
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?
Desi District does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Desi District FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Desi District FDD and qualifies whose outlets they describe.
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 C-grade franchise with a verdict score of 45 out of 100 (higher is better), 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
Are you the franchisor?
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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.