West Coast Sourdough Franchise Cost, Revenue & Review 2026
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. Per the 2025 FDD, average unit revenue was $741K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $297K – $442K
- 49th pct Service Resta…
- Avg gross sales
- $741K
- 9th pct Service Resta…
- Royalty
- N/A
- 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 avg · 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.
- RETURNSAverage unit revenue of $741K/year (median $711K).
- RISKVerdict A (Strongest tier), verdict score 59/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
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
- $1.0M
- 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
- 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 44% 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
- 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.
What do units actually make?
Average unit sales run 39% below the quick-service restaurants norm.
Source: FDD 2025 · Item 19
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
$111K
15.0% margin
Unlevered ROIC
29%
EBITDA / total invested capital
Payback
3.5 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
29%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 West Coast Sourdough units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $5.9M purchase
Total debt
$4.7M
SBA $3.0M + senior + seller note
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 20
- 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
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 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 average of 7.9%.
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 averages
How West Coast Sourdough Compares
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
- 1
- 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 (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 14
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
- N/A
- no resolved loans yet — rate needs a terminal outcome
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.
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)
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 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 | 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 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 A-grade franchise with a verdict score of 59 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.