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FranchiseVerdict

How Much Does a District Taco Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$734K – $1.5M

Franchise Fee

$25K

Royalty

6.0%

Ad Fund

2.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for District Taco is $25K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a District Taco franchise requires a total investment of $734K – $1.5M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $0 to $25K.

Ongoing Costs

Beyond the initial investment, District Taco franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Percentage of Gross Sales). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $2K.

Net Worth & Liquid Capital Requirements

District Taco requires working capital of $0 – $25K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to District Taco's Item 19 financial performance representation:

$1.9MAvg. Gross Sales

Median gross sales: $2.0M

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

Next Steps

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