District Taco
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).
- Rated MODERATE with a risk score of 55/100.
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 District Taco unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 District Taco units return on equity?
Equity IRR · 5-yr
33.6%
4.26× MOIC
Year-1 DSCR
2.41×
EBITDA ÷ debt service
Equity required
$5.8M
on $15.5M purchase
Total debt
$9.6M
SBA $5.0M + senior + seller note
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.
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 · 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 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
Early-stage, undercapitalized franchise with opaque profitability metrics and minimal unit base creates meaningful risk despite no litigation or going concern issues.
Score breakdown · what drove the 55 / 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
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
20 numbers
One-time purchase · CSV download · Validation questions included
FDD download
District Taco · FDD (2024) PDF