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District Taco Franchise FDD, Costs & Fees (2026)

District Taco is a fast-casual Mexican franchise offering made-to-order tacos, bowls and margaritas, serving lunch and dinner crowds, and known for fresh ingredients, bold regional flavors and franchise growth momentum.

KEY FRANCHISE STATS

Franchisees

?

2
+
n.a.
n.a.
Franchise fee

?

$25,000
Investment

?

$734,000 - $1,458,000
Revenue (AUV)

?

Undisclosed

$0

+
n.a.
n.a.
Upgrade

District Taco is a fast-casual franchise offering Mexican cuisine rooted in the traditional flavors of the Yucatán. The brand began in 2009 when Osiris Hoil teamed up with his neighbor, Marc Wallace, to launch a small food cart in Rosslyn, Virginia.

That humble cart quickly grew into a full restaurant concept, fueled by Hoil’s family recipes and the popularity of Yucatán-style dishes. Today, the company operates from its headquarters in Falls Church, Virginia, where it manages its multi-state growth.

Before opening the opportunity to franchise partners in 2021, District Taco built a strong foundation with several company-owned restaurants throughout Washington, D.C., Maryland, and Virginia.

The brand differentiates itself in the competitive fast-casual Mexican market through its emphasis on fresh ingredients, authentic regional flavors, and a versatile menu. Customers can choose from tacos, burritos, bowls, quesadillas, and other customizable items featuring grilled meats, roasted peppers, and house-made salsas.

Initial investment

The initial investment required for a District Taco franchise is $734,000 - $1,458,000. That is the total cost you would need to finance if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial franchise fee $25,000
Leasehold improvements $500,000 to $850,000
Architect/Engineer costs $20,000 to $30,000
On-site evaluations $0 to $500
Restaurant assets $165,000 to $300,000
Signage $5,000 to $25,000
3 months’ rent $0 to $75,000
Security deposit $0 to $50,000
Opening inventory and supplies $5,000 to $20,000
Office and business supplies $1,000 to $5,000
Grand opening marketing $5,000
Training expenses $6,000 to $14,000
Miscellaneous opening costs $0 to $1,000
Utility deposits $0 to $10,000
Business licenses, including liquor license $1,000 to $20,000
Insurance $750 to $2,250
Additional funds – 3 months $0 to $25,000
Total Estimated Initial Investment $733,750 to $1,457,750

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Type of Expenditure Amount
Initial franchise fee $25,000
Leasehold improvements $500,000 to $850,000
Architect/Engineer costs $20,000 to $30,000
On-site evaluations $0 to $500
Restaurant assets $165,000 to $300,000
Signage $5,000 to $25,000
3 months’ rent $0 to $75,000
Security deposit $0 to $50,000
Opening inventory and supplies $5,000 to $20,000
Office and business supplies $1,000 to $5,000
Grand opening marketing $5,000
Training expenses $6,000 to $14,000
Miscellaneous opening costs $0 to $1,000
Utility deposits $0 to $10,000
Business licenses, including liquor license $1,000 to $20,000
Insurance $750 to $2,250
Additional funds – 3 months $0 to $25,000
Total Estimated Initial Investment $733,750 to $1,457,750

Franchise Disclosure Document

Below is District Taco's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.

Number of units

District Taco had 15 total units in 2024, of which 2 were franchised-owned and 13 company-owned.

Competitors

Below are some of

District Taco

key competitors in the

Mexican

sector.

Franchise
Franchisees
Royalty fee
Total investment
Revenue
Upgrade
EBITDA
Upgrade

2

New
+
n.a.
n.a.

6.00%

$734,000

-

$1,458,000

$0

n.a.

$xxx,xxx

n.a.

xx%

n.a.

Training

District Taco provides a structured and multi-phase training program to its franchisees designed to ensure operational consistency and uphold brand standards. Here are the key training programs the franchisor offers:

  1. Initial Training Program
    This is mandatory for the Operating Principal, General Manager, Multi-unit Manager (if applicable), two managers, and any other designated attendees. The training includes classroom instruction, on-site hands-on training at an operating District Taco restaurant, remote learning via online platforms, and self-study components. All attendees must complete the training to the franchisor’s satisfaction before the restaurant can open.
  2. Opening Trainer Program
    Upon request, District Taco provides an Opening Trainer for up to 10 days—starting before and continuing after the opening of the franchise location. This trainer assists in brand standards training. For second or subsequent locations opened by the franchisee, the franchisee is responsible for the trainer’s travel, lodging, meals, and related expenses.
  3. Ongoing Training and Evaluation
    Throughout the term of the franchise agreement, District Taco may require attendance at periodic training sessions, evaluation programs, or conventions. These may be delivered in-person or virtually. Attendance may be mandated for the Operating Principal, Multi-unit Manager, General Manager, or other designated personnel. Franchisees are responsible for any associated fees and travel expenses.

Territory Protection

District Taco offers a form of limited territory protection through the assignment of a “Primary Area of Responsibility” (PAR) in its Franchise Agreement. Franchisees retain exclusivity within this area, and District Taco typically refrains from granting additional franchises within it during the agreement term.

However, this protection is contingent on meeting minimum annual gross sales benchmarks, which start at $1.0 million in year one and increase to $1.2 million by year three. The franchisee does not have the right to expand within or beyond the Primary Area of Responsibility unless granted explicitly.

Additionally, District Taco and its affiliates reserve the right to sell similar or competitive products using other channels, including online and non-traditional locations, even within a franchisee's protected area. This means that while there is some territorial protection, it is neither absolute nor exclusive in all business contexts.

Frequently Asked Questions

Competitors

Below are some of District Taco's key competitors in the Mexican sector.

Taco Rico or Taco Works

Franchisees

?

3
+
0%
0%
Investment

?

$155,000 - $341,000
Revenue

?

Upgrade

Mike's Red Tacos

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$640,000 - $1,988,000
Revenue

?

Upgrade

Mucho Burrito

Franchisees

?

1
+
n.a.
n.a.
Investment

?

$470,000 - $925,000
Revenue

?

Upgrade

District Taco

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$734,000 - $1,458,000
Revenue

?

Upgrade

Chronic Tacos

Franchisees

?

29
+
-36%
-36%
Investment

?

$284,000 - $884,000
Revenue

?

Upgrade

Taco Cabana

Franchisees

?

6
+
0%
0%
Investment

?

$1,267,000 - $2,776,000
Revenue

?

Upgrade

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