Franchise Deep Dive: District Taco’s Franchise Costs, Fees, Profit and Data

Under the ownership of entrepreneur Osiris Hoil, District Taco’s humble beginnings has grown into a network of more than 70 locations under development.

By Jeff DwyerStaff Writer

1:13PM • 10/09/23

LAST UPDATED: October 5, 2023
FRANCHISE WEBSITE: https://franchising.districttaco.com/
NUMBER OF LOCATIONS: 15+
REPORTED COST TO GET IN: $733,750 to $1,457,750
REPORTED ROI (Item 19): $2,535,665

District Taco is an emerging, fast-casual Mexican restaurant that serves fresh, healthy and authentic Yucatan-inspired dishes, including breakfast and lunch tacos, burritos, bowls, salads and quesadillas.

District Taco was founded in 2009 by Osiris Hoil and his neighbor Marc Wallace. Hoil, who was originally from Mexico, moved to the U.S. with hopes of becoming an entrepreneur. He ended up losing his job as a result of the 2008 housing crisis and combined his passion for cooking with his new American lifestyle; District Taco was born. Wallace and Hoil started their journey with a food truck cart that they opened in Rosslyn, Virginia. In 2010, they opened their first brick-and-mortar store in Arlington, Virginia.

The pair began offering franchise opportunities in 2021 as a result of District Taco’s offerings. Also, the brand was recently named to QSR Magazine’s annual “40/40 List for America’s Hottest Startup Fast-Casual” restaurants.

How Many District Taco Locations Are There?

As of October 2023, District Taco has more than 15 open locations throughout Washington, D.C., Maryland, Virginia and Pennsylvania. However, the brand has recently signed several multi-unit deals. It now has more than 70 units under development in places like Florida, New Jersey and Virginia. District Taco aims to open 10 to 15 new locations each year with the goal of hitting 80 locations by 2027.

View all of District Taco’s available franchise territories here.

What Is District Taco’s Business Model?

At its core, District Taco’s business model revolves around providing fresh food made from the highest quality ingredients to its customers. The brand’s menu items are fully customizable and include vegetarian, vegan and gluten-free options.

According to the brand’s website, District Taco is able to stand out from other popular Mexican restaurants because the flavor palate is based on family recipes from the Yucatan, where co-founder Osiris Hoil was born and raised. Additionally, the brand holds itself to the “highest customer service standards” and strives to become an active member of every community that it enters.

An ideal franchise partner for District Taco is:

Multi-unit operator or senior restaurant professional with experience operating five or more restaurants
Passionate about delivering high-quality, fresh food and exceptional customer service
Motivated to grow with an emerging franchise brand

How Much Can District Taco Franchise Owners Make?

According to the brand’s consumer-facing website, the average unit volume for a District Taco location is $2,535,665.

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

The investment required to open a District Taco franchise ranges from $733,750 to $1,457,750. Prospective franchisees must also sign a minimum five-unit development agreement and have $250,000 cash to start. Interested candidates must also meet the following qualifications:

Minimum $1 million liquid capital
Access to $5 million investment capital
Minimum $5 million net worth

Franchise owners are also required to pay an ongoing 6% royalty fee and a 2% innovation fund.

What Is the Franchise Fee for District Taco?

The franchise fee to open a District Taco location is $25K. The brand also has a $50K development fee that must be paid to the franchisor.

Who’s On District Taco’s Leadership Team?

What Helpful Articles Can I Read to Learn More About District Taco?

Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.