World Of Sourdough Franchise Cost & 2026 FDD Data
76/100
Strongest tier
76 this brand53 Full-Service Restaurants medianlikely 72–80: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#276 of 3,068 graded brands
Why an A: Helped by unit growth, legal record and transparency. See all six factors
- Total investment
- $330K – $589K
- Avg gross sales
- $711K
- 78 outlets reporting; not profit
- SBA charge-off
- 11 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a World Of Sourdough franchise requires a total initial investment of $330K – $589K, including a $50K franchise fee. Once open, the ongoing royalty is 5.0%. Per the 2026 FDD, average gross sales were $711K (78 outlets reporting; gross sales, not profit). Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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 scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
Quick verdict · vs Full-Service Restaurants median
Top edge: green = better than the Full-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $711K/year (outlet median $716K; includes company-owned outlets; 78 outlets reporting; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 19 (20 opened, 0 closed; other Item 20 movements account for the remaining 1).
- GROWTH+36 franchised outlets over the two years to 2025 (61 to 97, +59.0% in total, +26.1% a year compounded), with 99 total units.
AT STAKEOne unit at the Item 7 midpoint: $60K a year in payments on assumed SBA 7(a)-style terms.You put in about $92K of your own cash and personally guarantee a $368K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 78 units. Not on file here, so ask: SBA charge-off rate against the category median and jury-trial waiver.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 57% below the Full-Service Restaurants median ($1.1M).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask World of Sourdough Franchising, LLC (Item 1: 8700 Auburn Folsom Rd., Suite 700, Granite Bay, California 95746) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (first 3 months) | $8K | $15K |
| Equipment, build-out, other | $273K | $525K |
| Total initial investment | $330K | $589K |
Source: World Of Sourdough 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross revenues |
| Technology fee$184/month for POS system and online functionality software usage and ongoing support; plus $100/month for Loyalty and Ordering App | $184/month |
| Transfer fee | $10,000 |
| Renewal fee | $10,000 |
What do units actually make?
Average gross sales are 62% below the Full-Service Restaurants median ($1.9M).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one World Of Sourdough unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $711K (FDD p.79), and the royalty and ad fund take about $36K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $60K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $460K Item 7 midpoint is a $368K loan, paid over 10 years at 10.5%: $60K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.
What you put at risk
Your own cash in: about $92K Assumption (the part the loan does not cover of the $460K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $368K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one World Of Sourdough unit leave you each year after the loan payment?
Item 19 reports $711,492 per unit. Includes company-owned outlets.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “Currently no System Advertising Fee; if implemented, 1% of weekly Gross Revenues, may increase but total contribution (system+local) capped at 3% of Gross Revenue per month” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
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.
Item 7 midpoint of $330K to $589K
Item 7's $8K to $15K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies ad fund rate, COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $368K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies ad fund rate, COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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: 2026 FDD · filed by World of Sourdough Franchising, LLC
Financial performance
- Range (low → high)
- $255K→$1.2MSource: 2026 FDD, page 79
- Cohort dispersion (min → max)
Percentile ranks within Full-Service Restaurants
Each rank is among the Full-Service Restaurants brands that report that figure (the count is under each bar).
vs Full-Service Restaurants medians
How World Of Sourdough compares
Category median of published Full-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.
Who are you contracting with?
World of Sourdough Franchising, LLC.
Item 21 (audited financials) · audited statements · 2026 FDD
The franchisor's own finances
The franchisor related companies owe it $231K, 4% of its assets. A franchisor that keeps little of its own profit has less of a cushion if the system has a bad year; ask how support and the ad fund are funded.
The figures, with their pages
- Net income
- $412Klatest year · FDD Item 21
- Owed by related companies
- $231K4% of total assets (our arithmetic) · FDD p.223
- Total assets
- $5.7MFDD Item 21
- Equity
- -$2.6MFDD Item 21
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- World of Sourdough Franchising, LLC
- CEO title
- Managing Member
- Jatinder (Nick) Singh
- Incorporated in
- TX
- HQ
- 8700 Auburn Folsom Rd., Suite 700, Granite Bay, California 95746
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $3.9M
- latest fiscal year in the 2026 FDD; $2.8M the year before
Overview
About
World of Sourdough Franchising, LLC franchises sandwich restaurants operating under the name Sourdough & Co., offering handcrafted sandwiches and related products.
- CEO
- Jatinder (Nick) Singh
Is the system healthy?
+36 franchised outlets over the two years to 2025 (61 to 97, +59.0% in total, +26.1% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
Item 20 · franchised units at year end
Franchised units rose from 61 in 2023 to 97 in 2025
Axis does not start at zero.
Source and method
Reacquisitions and outlets moved to or from company ownership also change the count, so opened minus closed differs from the change.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 11
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $3.3M
- Average loan
- $298K
- loan volume divided by loans
- Charge-off rate
- 11 loans: too few to judge
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 11 loans: too few to judge
- Recent-loan charge-off
- 11 loans: too few to judge
- Lenders
- 6
- Average interest rate
- 11.0%
- Jobs reported
- 122
- Lender concentration
- 27%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Borrower mix: of the 11 loans with a recorded business age, 9 (82%) went to startups or businesses under two years old and 2 (18%) to established businesses or ownership changes.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for World Of Sourdough from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 74%
- Average interest rate
- 11.0%
- Lender concentration
- 27%
- Jobs reported
- 122
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| Byline Bank | ||
| 3 | $936K | Not on file |
| VelocitySBA, LLC | ||
| 3 | $1.3M | Not on file |
| The Huntington National Bank | ||
| 2 | $325K | Not on file |
| Open Bank | ||
| 1 | $258K | Not on file |
| Main Street Launch | ||
| 1 | $346K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| CA California | 10 | 0 | Too few0 resolved |
| NV Nevada | 1 | 0 | Too few0 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (3)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 76/100 (category median 53); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral
- Unit economics NeutralAvg gross sales $711K on a $460K investment midpoint, 1.5x (gross sales, not profit)
- Unit growth Helps+36 franchised outlets over the two years to 2025 (61 to 97, +59.0% in total, +26.1% a year compounded)
- Scale Neutral97 franchised units, +2 company-owned (99 in all); franchising since 2021
- Legal Helps1 matter naming the franchisor among the Item 3 matters we list (1.0 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-1 point)Rounding: the score is kept as a whole number, which moved it by 1 point.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three cases in Superior Court of California, County of Sacramento, arising from claims by former franchisees of Sourdough & Co. against the franchisor and its principals for franchise law violations, fraud, and related claims; one settled for $240,000, others dismissed with prejudice.
Largest disclosed settlement in the franchisor's own cases: $240,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
Item 21 audited statements of World of Sourdough Franchising, LLC (sole audited entity; no parent). Balance sheet as of 12/31/2025; figures already in whole USD. Auditor issued a clean/unqualified opinion with an emphasis-of-matter that the Company has extensive affiliate transactions, so results may not be indicative of standalone operations (not a going-concern qualification). Members' equity is a deficit of ($2,577,651), driven by member distributions ($1,513,090 in 2025) exceeding positive net income ($411,615 FY2025, $150,379 FY2024) rather than operating losses. Other revenue is 'Other income' line $100,432 (royalties $2,636,984 + rebate income $647,733 + initial franchise fees $513,190 make up the remainder).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results; the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Litigation case detail3 matters · Item 3
Litigation cases
The franchisor
Concluded (1)
GSD Foods, Inc., Davinder Singh, an individual, Powerglide Holdings, LLC, Kaldeep Uppal, an individual; SD-Folsom, Inc. v. Sourdough & Co., Inc., SFSE of EDH, Inc., Lowell Steven Presson, an individual, R. Gordon Ross, an Individual, David Bagley, an individual, and World of Sourdough Franchising, L
settledBrought by a franchisee · filed 2020-03-09 · Superior Court of California, County of Sacramento · 34-2020-0027829B
“GSD Foods, Inc., Davinder Singh, an individual, Powerglide Holdings, LLC, Kaldeep Uppal, an individual; SD-Folsom, Inc. (“Plaintiffs”) v. Sourdough & Co., Inc., SFSE of EDH, Inc., Lowell Steven Presson, an individual, R. Gordon Ross, an Individual, David”Page 8 of the 2026 FDD, Item 3
Outcome: “The parties settled all claims and entered into a confidential settlement agreement with us settling all claims for $240,000 to be paid in installments.”
Officers and directors (individuals, not the company)
Concluded (2)
S.L. Presson Inc. vs. Lowell Steven Presson
dismissedLowell Steven Presson (our managing member and owner) · filed 2020-07-16 · Superior Court of California, County of Sacramento · 34-2020-002818172
“S.L. Presson Inc. (“Plaintiff”) vs. Lowell Steven Presson filed in the Superior Court of the State of California, County of Sacramento (Case No. 34-2020-002818172).”Page 9 of the 2026 FDD, Item 3
KULWANT SINGH, an individual; JOGINDER DULAI, an individual v. S.L. PRESSON, INC., a California corporation; PRAB GROUP, a California corporation; STEVE PRESSON, an individual; and DOES 1 through 10, inclusive
dismissedSteve Presson (our managing member and owner), S.L. Presson, Inc. and PRAB Group · filed 2019-11-27 · Superior Court of California, County of Sacramento · 34-2020-00278230
“KULWANT SINGH, an individual; JOGINDER DULAI, an individual (“Plaintiffs”) v. S.L. PRESSON, INC., a California corporation;”Page 9 of the 2026 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 15 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | Yes |
| Arbitration location | Placer County, California |
| Governing law | California |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 98 hrs
- On-the-job training
- 230 hrs
- Training location
- Corporate headquarters, Granite Bay, California
- Ongoing training
- Required
- Field support
- 80 hrs/yr
- On-site visits per year
- Time to open
- 9–12 mo
- From signing to launch (FDD p.33)
- Site selection
- Franchisor approval required; required use of Stone Commercial (designated real estate broker) for site selection
- Franchisor financing
- Not offered
- Item 10
- POS system
- Heartland Restaurant POS System (via POS Specialists)
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a World Of Sourdough franchise?
Per the 2026 FDD, the total investment to open a World Of Sourdough franchise ranges from $330K to $589K, with an initial franchise fee of $50K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do World Of Sourdough franchise owners earn?
According to Item 19 of the World Of Sourdough FDD, average gross sales were $711K (78 outlets reporting; gross sales, not profit). The median is $716K. Includes company-owned outlets. What an owner keeps depends on location, operating costs and management.
Who owns World Of Sourdough?
World Of Sourdough is franchised by World of Sourdough Franchising, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the World Of 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 World Of Sourdough FDD and qualifies whose outlets they describe.
What is World Of Sourdough's franchise failure rate?
There is no published franchise failure rate, and World Of Sourdough has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many World Of Sourdough franchise locations are there?
Per the 2026 FDD, World Of Sourdough has 97 franchised units and 2 company-owned (99 in all). In the latest year, the number of franchised outlets grew by 19 (20 opened, 0 closed; other Item 20 movements account for the remaining 1).
Is World Of Sourdough a good franchise to buy?
FranchiseVerdict gives World Of Sourdough an A Verdict grade (Strongest tier) with a verdict score of 76 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit growth (+36 franchised outlets over the two years to 2025: 61 to 97, +59.0% in total, +26.1% a year compounded), legal record and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Full-Service Restaurants franchises
Similar investment first, then by grade
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.