West Coast SourdoughFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A West Coast Sourdough franchise requires a total initial investment of $297K – $442K, including a $25K franchise fee. Per the 2025 FDD, average unit revenue was $741K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $297K – $442K
- 18th pct Service Resta…
- Avg gross sales
- $741K
- 5th pct Service Resta…
- Royalty
- N/A
- Units
- 49
- 36th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 49 to 25 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $297K – $442K including a $25K franchise fee.
- Average unit revenue of $741K/year (median $711K).
- Verdict A (Top Quintile) with a risk score of 52/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- WCSD Inc.
- CEO title
- Chief Executive Officer
- Manjinder (“Manny”) Deol
- Incorporated in
- CA
- HQ
- 520 9th Street, Suite 230, Sacramento, California 95814
- Auditor
- Velez & Hardy
- Audited financials
- Franchisor revenue
- $1.0M
- vs $1.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- is the owner of the Licensed Marks
- maintains a pr
- has not in the past and does not now offer franchises in any lines of business
- operates a business similar to the Franchised Business and utilizes the Licensed Marks
- SFB Holdings
Other brands the franchisor or its parent operates (Item 1).
Overview
About
West Coast Sourdough franchisees operate artisanal sourdough bakeries offering handcrafted breads and bakery items, typically in retail storefronts or kiosks. Day-to-day operations include dough preparation, fermentation management, baking, point-of-sale transactions, and customer service in a production-focused environment.
- CEO
- Manjinder (“Manny”) Deol
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $12K | $18K |
| Equipment, build-out, other | $260K | $399K |
| Total initial investment | $297K | $442K |
Source: West Coast Sourdough 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$82K
11.0% margin
Unlevered ROIC
21%
EBITDA / total invested capital
Payback
4.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $297K – $442K
- Better than avg vs category
- Liquid capital req'd
- $12K – $18K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- Greater of 5% of Gross Sales or $1,000 per month
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Greater of 5% of Gross Sales or Minimum Monthly Royalty Fee Requirement |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $500 |
| Training fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $3K |
| Inventory (initial) | $1K – $3K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $741K
- Per unit, per year
- Median gross sales
- $711K
- Item 19 type
- Actual
- Sample size
- 35 units
- vs category median 13 · large
- Range (low → high)
- $289K→$1.4M
- Cohort dispersion (min → max)
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How West Coast Sourdough Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 49
- Opened
- 14
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +40.0%
- Net unit change last year
- 3-yr CAGR
- +96.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 1
- Transfers (3yr)
- 2
- Projected new
- 7
- Franchisor's next-year forecast
- Transfer rate
- 4.1%
- Owners selling to other franchisees
- Ceased ops
- 2.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Litigation-laden franchisor with aggressive expansion, missing profitability data, and regulatory history presents elevated risk despite strong topline revenue and protected territories.
Litigation (Item 3)
Two cases: (1) Sourdough & Co., Inc. v. WCSD, Inc. (E.D. California, 2:20-cv-01226-TLN-CKD) - trade dress infringement and franchise law violations claim filed June 2020, motion for judgment on pleadings granted February 28, 2024, settled May 19, 2024; (2) WCSD, Inc. v. Westcoastsourdough.com (E.D. California, 2020-cv-01538-TLN-CKD) - domain misappropriation claim filed June 4, 2020, transferred from E.D. Virginia and consolidated.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy,” is supplemented by the addition of the following: No entity or person listed in Items 1 and 2 of this Disclosure Document has, at any time during the previous 10 fiscal years (a) filed for bankruptcy protection, (b) been adjudged bankrupt, (c) been reorganized due to insolvency, or (d)
Audited financials (Item 21)
Yes · Velez & Hardy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 52 / 100 rating
- 01MEDNet income not disclosed in Item 19 — cannot assess true profitability despite $741K average revenue
- 02HIGHActive litigation history including trademark infringement, domain misappropriation, and DFPI consent order for unregistered franchise sales
- 03MINORDFPI consent order indicates prior regulatory violations and compliance risk
- 04MINORAggressive unit growth (40% YoY) may indicate oversaturation or unsustainable expansion pace
- 05MINORRoyalty structure ($1,000/month minimum) creates break-even risk on underperforming locations
- 06HIGHNo 'Going Concern' status confirmation — potential financial instability at franchisor level
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Territory population | 10,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Sacramento County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 3 |
View Item 3 litigation summary
Two cases: (1) Sourdough & Co., Inc. v. WCSD, Inc. (E.D. California, 2:20-cv-01226-TLN-CKD) - trade dress infringement and franchise law violations claim filed June 2020, motion for judgment on pleadings granted February 28, 2024, settled May 19, 2024; (2) WCSD, Inc. v. Westcoastsourdough.com (E.D. California, 2020-cv-01538-TLN-CKD) - domain misappropriation claim filed June 4, 2020, transferred from E.D. Virginia and consolidated.
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 200 hrs
- Training location
- Sacramento, California
- Site selection
- joint
- POS system
- Storefront
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Storefront
Item 20 · call current owners
Franchisee Contacts
49 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
West Coast Sourdough · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a West Coast Sourdough franchise?
The total investment to open a West Coast Sourdough franchise ranges from $297K – $442K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do West Coast Sourdough franchise owners earn?
According to Item 19 of the West Coast Sourdough FDD, the average gross sales per unit is $741K. The median is $711K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is West Coast Sourdough's franchise failure rate?
SBA 7(a) loan charge-off data is not available for West Coast Sourdough (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many West Coast Sourdough franchise locations are there?
As of their most recent FDD filing, West Coast Sourdough has 49 total units in the United States, including 49 franchised units and 0 company-owned units. 14 new units were opened in the latest reporting year.
Is West Coast Sourdough a good franchise to buy?
FranchiseVerdict rates West Coast Sourdough as a A-grade franchise with a risk score of 52 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.