Franchise Agreement – Section 8.G) Social Media You must comply with our policies and requirements, which we may periodically modify, concerning blogs, common social networks like Facebook, profession
From the filings
District Taco
Quick service restaurantSoftware purchasing decisions at District Taco are controlled at the headquarters level by a small executive team including Co-Founder/CEO Abelardo ‘Osiris’ Hoil and President/COO Chris Medhurst. The brand does not mandate any specific technology systems in its most recent Franchise Disclosure Document. With only 15 total units—13 company-owned and 2 franchised—the addressable market is extremely limited, making this a niche target for vendors.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8%of gross sales (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
cebook, professional networks like Linked-In, District Taco FDD 2024 B3 31 live-blogging tools like Twitter, virtual worlds, file, audio and video sharing sites like Pinterest and Instagram, and other
tworks like Facebook, professional networks like Linked-In, District Taco FDD 2024 B3 31 live-blogging tools like Twitter, virtual worlds, file, audio and video sharing sites like Pinterest and Instag
ich we may periodically modify, concerning blogs, common social networks like Facebook, professional networks like Linked-In, District Taco FDD 2024 B3 31 live-blogging tools like Twitter, virtual wor
Franchisor behaviours
What the franchisor requires
24 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 6 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent, unlimited access to all information and data in your Computer System, including continuous independent access to all Customer Data (defined in Item 14).
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
within fifteen (15) days after the end of each month, a monthly income statement and a balance sheet and statement of cash flow as of the end of the previous month;
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We also require you to purchase all signage and advertising materials for your DT Restaurant from us or our affiliate.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may periodically modify the specifications for and components of, and/or the technologies and functions for the Computer System.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
7127Item 8
During 2023, parent company District Brands, Inc received revenue of $7,127 from selling District Taco employee apparel to District Taco Restaurant franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
During 2023, we received supplier rebates of $734 from suppliers based on franchisees’ purchases from those suppliers.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
98Item 8
Currently, the purchases and leases that you must make from us or our affiliates, from approved suppliers, or according to the DT Standards represent approximately 95% of your total purchases and leases in establishing, and approximately 98% of your total purchases and leases in operating your DT Restaurant.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
You need not pay us any fees for proposing new suppliers or distributors.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
We may periodically inspect the Site while you are developing your DT Restaurant.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may modify the DT Manual periodically to reflect changes in DT Standards.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You will operate your DT Restaurant at a specific Site that we first must accept.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not develop, maintain or authorize any other website, other online presence or other electronic medium (such as mobile applications, kiosks and other interactive properties or technology-based programs) that mentions or describes you, your DT Restaurant or its products or services or that displays any of the…
Is a minimum grand opening advertising spend required?
YesItem 11
You must, at your expense, implement a grand opening marketing program for your DT Restaurant according to the requirements in the DT Manual and other DT Standards.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we have established a Cooperative for the geographic area in which your DT Restaurant is located on the date you sign the Franchise Agreement, or if we establish a Cooperative in that area during the Franchise Agreement’s term, you must sign the documents that we reasonably require to become a member of the…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You also must buy your food, beverages and operating supplies through our approved distributor and under the distribution agreement that we negotiated for the District Taco Restaurant network.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
Currently, you must also purchase certain food items, alcoholic and other beverages, supplies, smallwares, largewares, District Taco FDD 2024 B3 17 chemicals, hot sauces, and retail merchandise only from a designated or approved supplier.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
You must sign and deliver to us the documents we periodically require authorizing us to debit your bank account automatically for the Royalty, Innovation Fund contribution, and other amounts due under the Franchise Agreement or any related agreement between us (or our affiliates) and you.
Must the franchisee participate in a gift card program?
YesItem 8
You must also purchase District Taco employee apparel and gift cards from us or our affiliate.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
At all times you must have an Operating Principal and General Manager for your DT Restaurant.
Must employees wear uniforms specified by the franchisor?
YesItem 8
You must also purchase District Taco employee apparel and gift cards from us or our affiliate.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must obtain Computer System components that we designate and ensure that your Computer System functions properly within 60 days after we deliver notice to you.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent, unlimited access to all information and data in your Computer System, including continuous independent access to all Customer Data (defined in Item 14).
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may charge reasonable fees for these training courses, programs and conventions.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Your personnel whom we reasonably specify periodically also must attend any conventions or other programs that we periodically specify for some or all District Taco Restaurants.
The filing answers no to 4 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Item 11
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
- 97.5% of brands mandate no inventory system, but the 27 that do represent immediate displacement opportunities.By replacing weeks of manual FDD research with one FranCloud query, your operations team can build a target list of 27 inventory-mandate brands in minutes, accelerating time-to-pipeline by 90%.
The vendor opportunity at District Taco
District Taco presents a very small addressable market for software vendors. The 2024 FDD reports just 15 total units, with 13 company-owned locations and only 2 franchised restaurants. This is a quick-service restaurant brand headquartered in Virginia. The average unit volume (AUV) is not disclosed in the most recent FDD. The royalty rate is 6.0% of gross sales, and the initial franchise term is 10 years. Year-over-year unit growth figures are not available in our corpus.
For a vendor, the opportunity here is less about scaling across a large franchise network and more about selling into a tightly controlled, corporate-owned group. The two franchised units represent the entirety of the non-corporate market, making this a low-volume, high-touch sales target.
Who controls software purchasing
Software purchasing authority is centralized at the headquarters level. The FDD lists four key executives in Item 1. The primary decision-makers for a technology pitch would be Abelardo ‘Osiris’ Hoil, the Co-Founder and Chief Executive Officer, and Chris Medhurst, the President and Chief Operating Officer. Marc Wallace, Co-Founder and Chairman, and board member Paul Cushman Robinson, Jr., may also hold influence. No dedicated Chief Information Officer or technology-specific role is listed, suggesting that operational and financial software decisions run directly through the CEO and COO.
Mandated and current tech stack
District Taco’s 2024 FDD does not mandate or recommend any specific technology systems. No POS provider, back-office platform, or digital ordering vendor is named in the captured data. This absence of a mandated tech stack means the brand either has no standardized technology requirements for its franchisees or does not disclose them in the FDD. For a vendor, this represents a blank slate but also a lack of a forced migration trigger. You would need to build a business case from scratch for the CEO and COO.
Procurement, renewals, and timing
The FDD provides no extract for Item 8, leaving the procurement model—whether designated supplier, approved supplier, or open—unknown. The renewal conditions in Item 17 offer a potential timing signal. A franchisee can renew for an additional 10-year term if they have complied with the agreement, provide written notice within the specified period, demonstrate a right to maintain the site for at least 10 years, and have renovated the restaurant to meet then-current standards. This renovation requirement could be a catalyst for technology upgrades at the two franchised locations, creating a narrow window for a sales pitch tied to a remodel cycle.
How to read the District Taco FDD
The full District Taco Franchise Disclosure Document for 2024 is embedded below. This legal document, filed with state franchise regulators, contains the granular detail on fees, obligations, and territory that software vendors need to qualify a lead. Pay close attention to Item 11 (franchisor’s obligations) for any technology assistance the franchisor provides, even if no systems are mandated. The absence of a named operator footprint in our corpus means you will need to identify the individual franchisees through your own research. For a ranked target list of franchise brands with stronger technology mandates and larger addressable unit counts, FranCloud can help you prioritize your outbound efforts.
Questions vendors ask
District Taco, answered from the filing
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Operator footprint
District Taco’s FDD on file does not disclose a franchisee directory.
Ownership
The portfolio behind District Taco
unknown of district brands.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.