World Of Sourdough Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A World Of Sourdough franchise requires a total initial investment of $330K – $589K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $711K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $330K – $589K
- 22nd pct Service Resta…
- Avg gross sales
- $711K
- 4th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 99
- 43rd pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-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
- Total investment $330K – $589K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $711K/year (median $716K).
- Verdict B (Above average), verdict score 48/100 (higher is better). SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System growing at 59.0% CAGR over 3 years with 99 total units. Strong expansion trajectory.
Item 1 · 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
- vs $2.8M prior year
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
- Headquarters
- CA
- Founded
- 2021
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 51% below the typical full-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $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 7 · what it costs to open + operate
The Vitals
- Total investment
- $330K – $589K
- Top 40% of category vs category
- Liquid capital req'd
- $8K – $15K
- Top 40% of category vs category
- Franchise fee
- $50K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- Currently no System Advertising Fee; if implemented, 1% o…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $184 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $9K – $12K |
What do units actually make?
Average unit sales run 54% below the full-service restaurants norm.
Source: FDD 2026 · 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
$71K
10.0% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.6 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $711K
- Per unit, per year
- Median gross sales
- $716K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 78 units
- vs category median 16 · large
- Range (low → high)
- $255K→$1.2M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
Compared against 1273 Full-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 $711K/year in gross sales. Revenue-to-investment ratio: 1.5x.
Fee burden
5.0% royalty.
Operator retention
System expanding at 59.0% CAGR over 3 years across 99 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 Full-Service Restaurants averages
How World Of Sourdough Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 99
- Opened
- 20
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- +59.0%
- Net unit change over 3 years
- 3-yr CAGR
- +59.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 10
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
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
- 11
- Loan volume
- $3.3M
- Median loan
- $305K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
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
- 6
- Defaults
- 0
- Typical loan rate
- 11.0%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 122
- 3.7 per loan
- Lender concentration
- 27%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing World Of Sourdough franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
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: $240,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | Yes |
| Arbitration location | Placer County, California |
| Governing law | California |
| Litigation count | 3 |
View Item 3 litigation summary
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.
Items 10, 11
Training & 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
- 12 mo
- From signing to launch
- 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 & 11
Franchisor Support
Technology: Heartland Restaurant POS System (via POS Specialists)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a World Of Sourdough franchise?
The total investment to open a World Of Sourdough franchise ranges from $330K – $589K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do World Of Sourdough franchise owners earn?
According to Item 19 of the World Of Sourdough FDD, the average gross sales per unit is $711K. The median is $716K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is World Of Sourdough's franchise failure rate?
Based on SBA 7(a) loan data, World Of Sourdough has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many World Of Sourdough franchise locations are there?
As of their most recent FDD filing, World Of Sourdough has 99 total units in the United States, including 97 franchised units and 2 company-owned units. 20 new units were opened in the latest reporting year.
Is World Of Sourdough a good franchise to buy?
FranchiseVerdict rates World Of Sourdough as a B-grade franchise with a verdict score of 48 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
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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.