FranchiseVerdict
West Coast Sourdough logo
FV-02954·STRONGExcellent95

West Coast Sourdough

Food & Beverage - Full ServiceFranchising since 2021Website
Investment
$297K – $442K
35th pct Full Service
Avg revenue
$741K
10th pct Full Service
Royalty
Units
49
72nd pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $297K – $442K including a $25K franchise fee.
  • Average unit revenue of $741K/year (median $711K).
  • Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 20 loans (below the industry average).
  • System growing at 96.0% CAGR over 3 years with 49 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
WCSD Inc.
Incorporated in
California
HQ
520 9th Street, Suite 230, Sacramento, California 95814
Auditor
Velez & Hardy
Audited financials
Franchisor revenue
$1.0M
vs $1.5M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one West Coast Sourdough unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $740,928
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $297K–$442K
Working capital
$
FDD reports $12K–$18K

Unlevered ROIC · per unit

31%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$119K
EBITDA margin
16.0%
Total invested
$385K
Payback
39 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 West Coast Sourdough units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.3M

on $6.7M purchase

Total debt

$5.3M

SBA $3.3M + senior + seller note

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
Founded
2020
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$297K – $442K
All-in to open one unit
Liquid capital
$12K – $18K
Cash you must have on hand
Franchise fee
$25K
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

Item 19

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 15 · large
Range (low → high)
$289K$1.4M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank10th
vs Food & Beverage - Full Service peers
Investment cost rank35th
Lower investment ranks lower (better)
Royalty rate rank93th
Lower royalty = lower percentile (better)
Unit count rank72th
vs Food & Beverage - Full Service peers
Risk score rank18th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
49
Opened
14
Last reporting year
Closed
0
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
2023
49+14
Franchised units
2024
35
Franchised units
2025
25
Franchised units

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)

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
20
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

52
Risk · 0-100
STRONG52 / 100

Litigation-laden franchisor with aggressive expansion, missing profitability data, and regulatory history presents elevated risk despite strong topline revenue and protected territories.

Score breakdown · what drove the 52 / 100 rating

  1. 01MEDNet income not disclosed in Item 19 — cannot assess true profitability despite $741K average revenue
  2. 02HIGHActive litigation history including trademark infringement, domain misappropriation, and DFPI consent order for unregistered franchise sales
  3. 03MINORDFPI consent order indicates prior regulatory violations and compliance risk
  4. 04MINORAggressive unit growth (40% YoY) may indicate oversaturation or unsustainable expansion pace
  5. 05MINORRoyalty structure ($1,000/month minimum) creates break-even risk on underperforming locations
  6. 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

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
200 hrs
POS system
Storefront
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

49 numbers

Locked
(916) 667-••••
CA
(916) 683-••••
CA
(209) 325-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

West Coast Sourdough · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above