District Taco^®

Food & Beverage • Year: 2024

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What Is District Taco?

District Taco is a casual/fast-casual franchise focusing on Yucatan-style Mexican and Latin cuisine, offering tacos, burritos, bowls, salads, quesadillas and similar menu items prepared to specified recipes. Franchisees must operate District Taco Restaurants in accordance with the franchisor's Franchise System and DT Manual and develop locations within agreed Development Areas under a Development Agreement.

District Taco Franchise: Pros and Cons

The franchisor scores a perfect 100 for training-and-support and even covers ongoing training costs, giving new operators strong onboarding and lower recurring expenses; however, the franchise fee ranges from $50,000 to $500,000—both above typical Food & Beverage levels—so your upfront acquisition cost could be materially higher.

Pros

The 100 training-and-support score (top quarter) and the franchisor covering ongoing training costs give you strong operational onboarding and lower recurring training expenses.

Zero disclosed lawsuits, zero franchisor enforcement actions, zero government penalties, zero franchisee-initiated judgments/settlements, zero alleged fraud cases, and zero outlet terminations/non-renewals — a clean legal and operational record that signals low regulatory and dispute friction for operators.

The Item 7 total minimum is $60,000, which is well below what's common in Food & Beverage, reducing the capital needed to enter the system.

Cons

The franchise fee ranges from a $50,000 minimum to a $500,000 maximum, both above what's typical in Food & Beverage, meaning your upfront acquisition cost could be materially higher than peers.

Multiple Item 7 line items (Assets and Training max/min) are reported as $0, well below typical — this sparse line-item reporting reduces transparency into specific startup costs during due diligence.

Lawsuits & Legal Risk

100

Excellent

The franchise reported no material legal proceedings.

Territory Protection

45/100

NORMAL

Grants a protected operating area where the franchisor will not place other physical units. The franchisor retains rights to develop nearby units, sell via e‑commerce and alternative distribution channels, operate in retail or alternative venues, acquire or convert locations, and require performance contingencies; protection is contingent on meeting quotas and reflects market density.

Training & Support

100

Excellent

The brand provides an extensive 180-hour training curriculum designed to prepare four initial franchisee staff for launch and ongoing operations. The program includes on-site launch support to assist with operational readiness; on-site assistance carries additional fees, and franchisees are responsible for travel and lodging expenses.

Unit Growth Analysis

From 2022–2024 the system was essentially flat at 15 total units (15 → 14 → 15), with a small contraction of −6.7% in 2023 followed by a 7.1% rebound in 2024. For investors this suggests a fragile recovery—operational stability has returned but there is no net growth over the period (0% change from 2022 to 2024), so meaningful franchise health improvement will require sustained unit additions beyond this single-unit rebound.

How Much Does It Cost to Open a District Taco Franchise?

Opening a District Taco franchise requires a total initial investment of $60,000 to $550,000, according to the 2024 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$60,000

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$550,000

Minimum Investment Breakdown

Franchise Fee$50,000

Real Estate$0

Equipment & Assets$0

Reserves$10,000

Training$0

Other$0

Maximum Investment Breakdown

Franchise Fee$500,000

Real Estate$0

Equipment & Assets$0

Reserves$50,000

Training$0

Other$0

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do District Taco Franchise Owners Make?

District Taco franchise locations reported average gross sales of $1,932,704 and median gross sales of $1,985,813 in 2024, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$1,932,704

Median Gross Sales:

$1,985,813

High Gross Sales:

$3,146,534

Low Gross Sales:

$1,016,816

Sample Size:

Percent Attaining Average:

55.0%

Franchise vs Corporate Performance: Only company-operated (affiliate) results are reported for 2023, so there is no basis in this Item 19 to compare franchised-unit performance; the reported average gross sales for company-operated restaurants was 1,932,704 for all markets.

Performance Variability Analysis: Company-operated restaurants show meaningful variability: median gross sales (1,985,813) are slightly above the average (1,932,704), and individual locations range from 1,016,816 to 3,146,534, with the top outlet generating roughly three times the lowest.

Data Scope and Limitations: The sample is small (11 restaurants) and limited to company-operated locations and percentage-based expense metrics (COGS and labor); absence of franchised-unit data and dollar expense/net income figures limits extrapolation to prospective franchisees.

Frequently Asked Questions

How much does it cost to open a District Taco franchise?

The total initial investment for a District Taco franchise ranges from $60,000 to $550,000, according to the 2024 Franchise Disclosure Document. This includes the franchise fee, real estate, equipment, training, and working capital.

What is the District Taco initial franchise fee?

The initial franchise fee for District Taco is $25,000, as stated in the 2024 FDD. This fee is paid upon signing the Franchise Agreement.

How much do District Taco franchise owners make?

District Taco franchise locations reported average gross sales of $1,932,704 and median gross sales of $1,985,813 in 2024, based on Item 19 of the Franchise Disclosure Document. Actual earnings vary by location, market, and operator experience.

Does District Taco have any franchise lawsuits or legal issues?

District Taco received a legal risk score of 100 out of 100 in the 2024 FDD analysis. The franchise reported no material legal proceedings.

Does District Taco offer exclusive franchise territories?

District Taco received a territory protection score of 45 out of 100. Grants a protected operating area where the franchisor will not place other physical units.

What training does District Taco provide to new franchisees?

District Taco received a training and support score of 100 out of 100. The brand provides an extensive 180-hour training curriculum designed to prepare four initial franchisee staff for launch and ongoing operations.

How many District Taco franchise locations are there?

District Taco had 15 total locations as of the 2024 Franchise Disclosure Document.

What type of business is District Taco?

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