District TacoFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A District Taco franchise requires a total initial investment of $734K – $1.5M, including a $25K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.9M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $734K – $1.5M
- 40th pct Service Resta…
- Avg gross sales
- $1.9M
- 20th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 15
- 25th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-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
Bottom line
- Total investment $734K – $1.5M including a $25K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.9M/year (median $2.0M).
- Verdict A (Top Quintile) with a risk score of 34/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- District Franchising, LLC
- Parent company
- District Brands, Inc.
- CEO title
- Chief Executive Officer and Board Member
- Abelardo 'Osiris' Hoil
- CEO experience
- 2020 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- VA
- HQ
- 2890 Emma Lee St., Suite 200, Falls Church, Virginia 22042
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
District Taco franchisees operate fast-casual Mexican restaurants, primarily focused on tacos and related items. Day-to-day operations include food preparation, inventory management, staff scheduling, and customer service in a QSR format. Franchisees manage point-of-sale systems, marketing, and local community engagement within their protected territory.
- CEO
- Abelardo 'Osiris' Hoil
- Headquarters
- VA
- Founded
- 2020
- FDD year
- 2024
- States available
- 4
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $0 | $25K |
| Equipment, build-out, other | $709K | $1.4M |
| Total initial investment | $734K | $1.5M |
Source: District Taco 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
$193K
10.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $734K – $1.5M
- Better than avg vs category
- Liquid capital req'd
- $0 – $25K
- Better than avg vs category
- Franchise fee
- $25K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $2K |
| Training fee | $2K |
| Transfer fee | $5K |
| Renewal fee | $25K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- $2.0M
- Item 19 type
- Company-operated Restaurants
- Sample size
- 11 units
- vs category median 13
- Range (low → high)
- $1.0M→$3.1M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How District Taco Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 15
- Opened
- 2
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.7%
- Company-owned
- 13
- Corporate units in the system
- % franchised
- 13%
- vs corporate-owned
- Multi-unit owners
- 50.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 9
- Franchisor's next-year forecast
- Ceased ops
- 6.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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
Early-stage, undercapitalized franchise with opaque profitability metrics and minimal unit base creates meaningful risk despite no litigation or going concern issues.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 34 / 100 rating
- 01MEDNo Item 19 (average net income) disclosed — cannot assess actual profitability or ROI
- 02MEDOnly 15 units system-wide suggests early-stage franchise with unproven scalability and limited peer support network
- 03MEDHigh capital requirement ($733k-$1.46M) with no disclosed net income creates significant financial risk
- 04MINOR6% royalty on $1.93M average revenue equals ~$116k annual royalties with unknown profit margins
- 05MINORUnknown unit growth trajectory indicates lack of demonstrated system expansion or franchisee success replication
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Specific location/Site |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Falls Church, Virginia |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 124 hrs
- Training location
- On-site and franchisor facility
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- POS system
- Computer System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Computer System
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
District Taco · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a District Taco franchise?
The total investment to open a District Taco franchise ranges from $734K – $1.5M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do District Taco franchise owners earn?
According to Item 19 of the District Taco FDD, the average gross sales per unit is $1.9M. The median is $2.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is District Taco's franchise failure rate?
SBA 7(a) loan charge-off data is not available for District Taco (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 District Taco franchise locations are there?
As of their most recent FDD filing, District Taco has 15 total units in the United States, including 2 franchised units and 13 company-owned units. 2 new units were opened in the latest reporting year.
Is District Taco a good franchise to buy?
FranchiseVerdict rates District Taco as a A-grade franchise with a risk score of 34 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
Are you the franchisor?
If you represent District Taco, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.