District Taco franchise
2024 filing · April 22, 2024GrowingShares sales figures
District Taco at a glance
A fast-casual restaurant serving Yucatan-style tacos, burritos, bowls and breakfast tacos. At the end of 2023 there were 15 District Taco locations in the US, 2 franchised and 13 company-owned, so most are run by the company itself.
The business
- Franchisor
- District Franchising, LLC
- The company that sells the franchises
- Franchising since
- 2021
- 3 years of selling franchises
- Franchisor based in
- Falls Church, Virginia
- Typical size
- 2,000–3,000 sq ft
What you pay
- Cost to open
- $734K–$1.46M
- Fee, build-out and opening working capital
- Franchise fee
- $25,000
- For each restaurant, signed under a required development agreement that carries a $50,000 development fee per restaurant
- Royalty
- 6%
- 6% of gross sales, paid weekly
- Agreement length
- 10 years
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 15
- Franchised and company-owned
- Franchised
- 2
- Company-owned
- 13
- Change in 3 years
- +2
- Franchised locations, 2021–2023
- States
- 4
- Most in Virginia, Washington and Maryland
From District Franchising, LLC’s 2024 filing; revenue and net loss from its audited financial statements, page 157; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
District Taco among all franchises with the same figure.
| Figure | District Taco | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,095,750 | Costs more than 85% of franchises |
| Franchise feePaid once, when you sign | $25,000 | Lower than 82% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 15 | Fewer than 55% of franchises |
How much a District Taco franchise costs
Opening one District Taco costs an estimated $733,750 to $1,457,750. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($500,000 to $850,000) and restaurant assets ($165,000 to $300,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial franchise fee | $25,000 | ||
| Leasehold improvements | $500,000 | $850,000 | |
| Architect/Engineer Costs | $20,000 | $30,000 | |
| On-site Evaluations | $0 | $500 | |
| Restaurant Assets | $165,000 | $300,000 | |
| Signage | $5,000 | $25,000 | |
| Months’ rent | $0 | $75,000 | |
| Security deposit | $0 | $50,000 | |
| Opening inventory and supplies | $5,000 | $20,000 | |
| Office and business supplies | $1,000 | $5,000 | |
| Grand opening marketing | $5,000 | ||
| Training expenses | $6,000 | $14,000 | |
| Miscellaneous opening costs | $0 | $1,000 | |
| Utility deposits | $0 | $10,000 | |
| Business licenses, including liquor license | $1,000 | $20,000 | |
| Insurance | $750 | $2,250 | |
| Additional Funds – 3 months | $0 | $25,000 | |
| Total | $733,750 | $1,457,750 | |
Source: District Franchising, LLC, 2024 filing, page 19
District Taco franchise fee
The franchise fee is $25,000, for each restaurant, signed under a required development agreement that carries a $50,000 development fee per restaurant. You pay it when you sign the franchise agreement.
Source: District Franchising, LLC, 2024 filing, page 11
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly. |
|---|---|
| Transfer fee | $5,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: District Franchising, LLC, 2024 filing, page 12
Other fees as filed, from page 13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures District Taco publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: District Franchising, LLC, 2024 filing, page 55
- Estimate Estimated yearly sales per location
- $870K–$1.6M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How District Taco compares
Of the 55 Mexican food franchises on this site, District Taco is the 42nd cheapest to open and the 27th largest by number of locations.
| Figure | District Taco | Typical Mexican food brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $734K | $457K | $222K |
| Cost to open, high end | $1.46M | $946K | $477K |
| Franchise fee | $25K | $35K | $40K |
| Royalty | 6% | 5% | 6% |
| US locations | 15 | 15 | 21 |
| Shares earnings figures | Yes | 38 of 55 | 2,147 of 3,352 |
Typical is the median across the 55 brands in mexican food franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 0 (0) | 14 | – | – |
| 2020 | 0 (0) | 14 | – | – |
| 2021 | 0 (0) | 15 | 0 | 0 |
| 2022 | 0 (0) | 14 | 0 | 0 |
| 2023 | 2 (+2) | 13 | +2 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: fast food franchise costs and franchise failure rates.
Over 5 years, from the start of 2019 to the end of 2023, franchised locations went from 0 to 2 (+2). The earlier years come from the brand's 2022 filing.
Source: District Franchising, LLC, 2024 filing, page 59
2019–2020: District Franchising, LLC, 2022 filing, page 62
Where District Taco locations are
At the end of 2023, District Taco had locations in 4 states. The most are in Virginia, Washington and Maryland.
- Virginia7
- Washington4
- Maryland2
- Pennsylvania2
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Virginia | 2 | 5 | 7 |
| Washington | 0 | 4 | 4 |
| Maryland | 0 | 2 | 2 |
| Pennsylvania | 0 | 2 | 2 |
Source: District Franchising, LLC, 2024 filing, page 60
Who owns District Taco?
District Taco franchises are sold by District Franchising, LLC. It is a subsidiary of District Brands, Inc.
From District Franchising, LLC’s 2024 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: District Franchising, LLC, 2024 filing, litigation on page 10, bankruptcy on page 11
District Taco filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from District Franchising, LLC’s 2024 filing, issued April 22, 2024; the earlier ones below are on record with the NASAA Electronic Filing Depository and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 22, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
| 2022 filing | May 20, 2022 | NASAA depository | Locations, 2019–2020 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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