West Coast Sourdough Franchise Cost, Revenue & Review 2026
- Investment
- $297K – $442K
- Disclosed sales
- $741K
- gross sales, not profit
- SBA charge-off
- Limited · 10 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
West Coast Sourdough is a fast-casual franchise serving deli sandwiches on fresh-baked sourdough bread. Franchisees run the shops, managing in-house baking, sandwich prep, and counter service.
FranchiseVerdict summary · 2026
A West Coast Sourdough franchise requires a total initial investment of $297K – $442K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $741K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $297K – $442K
- 48th pct Service Resta…
- Avg gross sales
- $741K
- 12th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 49
- 65th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $297K – $442K including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $741K/year (median $711K).
- RISKVerdict B (Above average), verdict score 59/100 (higher is better).
- GROWTHPositive: net +14 franchised outlets in the latest year (14 opened, 0 closed); 5 signed but not yet open (Item 20).
- GROWTHSystem growing at 226.7% CAGR over 3 years with 49 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- WCSD Inc.
- CEO title
- Chief Executive Officer
- Manjinder "Manny" Deol
- Incorporated in
- California
- HQ
- 520 9th Street, Suite 230, Sacramento, California 95814
- Auditor
- Velez & Hardy
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.0M 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
- CEO
- Manjinder "Manny" Deol
- Headquarters
- CA
- Founded
- 2020
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 24% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $297K – $442K
- Middle of category vs category
- Liquid capital req'd
- $12K – $18K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| 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.
What do units actually make?
Average unit sales run 24% below the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for West Coast Sourdough until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$385K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one West Coast Sourdough unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $741K
- Per unit, per year
- Median gross sales
- $711K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Actual
- Sample size
- 35 outlets
- vs category median 19
- Range (low → high)
- $289K→$1.4MCited, not corroborated — printed on page 63 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $741K/year in gross sales. Revenue-to-investment ratio: 2.0x.
Fee burden
Total ongoing fee load of 6.0% — below the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 226.7% CAGR over 3 years across 49 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How West Coast Sourdough Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
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
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 5
- 0.10 per open outlet · Item 20 Table 5
- 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
- 10
- Loan volume
- $5.2M
- Median loan
- $517K
- average
- Charge-off rate
- Limited · 10 loans
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 10 loans
- 5-yr charge-off
- Limited · 10 loans
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Young franchisor (began 2021) with thin financials: $356K net worth on $1.5M revenue, though audited with Item 19. 3 litigation matters are elevated for a 49-unit system. Explosive 226.7% unit growth signals rapid, unproven expansion.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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)
None disclosed
Audited financials (Item 21)
Yes · Velez & Hardy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor total revenue FY2024 = $1,507,173 (disclosed in Item 8 rebate context); rebates from franchisee purchases = $12,257.73 (0.81% of total revenue).
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 59 / 100 verdict
- 01MINORThin franchisor net worth of $356,358
- 02HIGH3 litigation matters for a small 49-unit system
- 03MINORRapid 226.7% unit growth indicates early-stage volatility
- 04MEDAudited financials and Item 19 disclosed (positives)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Territory population | 10,000 |
| Online sales rightsℹ | 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
- Ongoing training
- Required
- Site selection
- joint
- Franchisor financing
- Not offered
- Item 10
- 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
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.
Who owns West Coast Sourdough?
West Coast Sourdough is franchised by WCSD Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the West Coast Sourdough FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the West Coast Sourdough FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 59 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.