West Coast Sourdough has filed a lawsuit seeking more than $15 million in damages against Cali Rays Sourdough Deli and a group of individual defendants, accusing them of stealing confidential recipes, business systems and brand identity to build a rival sandwich chain. The complaint, filed in Sacramento County Superior Court, names Cali Rays Sourdough Deli, CR Development, Inc., and individuals Gurdeep Bains, Kaldeep Uppal, Karndeep “Kay” Uppal, Rajwinder Singh, Balraj Singh and Gurpreet Singh Brar as defendants.
According to Action News Now, the case, numbered 26CV023767, was brought by WCSD, Inc. and SFB Holdings Inc., with WCSD identified as the franchisor behind the West Coast Sourdough brand. The plaintiffs are represented by the Benbrook Law Group of Sacramento. The lawsuit alleges that former West Coast Sourdough locations left the franchise system and rebranded as Cali Rays Sourdough Deli while their franchise agreements were still in effect.
Per the complaint, the defendants used confidential information, business systems and the established West Coast Sourdough brand identity to build a competing restaurant operation and recruit additional franchisees to defect. Cali Rays is accused of retaining highly similar menus, restaurant designs and layouts, and of building its operation using West Coast Sourdough's recipes, food preparation methods, supplier information and operating systems. The complaint further alleges that defendants offered reduced or waived fees and conversion assistance to lure franchisees out of their existing agreements early, trading on West Coast Sourdough's brand and goodwill in ways that could confuse customers about which restaurants were actually affiliated with the original chain.
A Sacramento Sandwich Chain Splinters
Former West Coast Sourdough franchisees have switched to Cali Rays Sourdough Deli, according to the Sacramento Business Journal. Five West Coast Sourdough locations across California's Central Valley, including stores in Fresno and Clovis, rebranded to Cali Rays in April 2026 amid the ongoing corporate disputes, per The Business Journal.
West Coast Sourdough has also pursued litigation against departing franchisees, the Sacramento Business Journal reported.
Executive Infighting Preceded the Franchisee Exodus
The franchisee rebellion followed a bitter leadership fight at the top of the company. Former West Coast Sourdough CEO Karndeep “Kay” Uppal has filed a lawsuit, the Sacramento Business Journal reported. That lawsuit sits alongside, but separate from, the new $15 million corporate complaint now working its way through the same courthouse.
The breakaway pattern is not new to this corner of the sandwich business. West Coast Sourdough was itself founded in 2020 by former licensees of Sourdough & Co., Inc., which filed a federal lawsuit against WCSD and other defendants alleging trade dress infringement, false designation of origin, false advertising and unfair competition, according to court records reviewed by Midpage. A separate state-court action filed in 2020 involved allegations about disclosures and unregistered franchises.
What West Coast Sourdough Is Asking the Court For
The new complaint includes claims for interference with contractual relationships, misappropriation of trade secrets, unfair competition and other alleged misconduct. Of the total damages sought, more than $6 million is attributed to lost royalty and marketing fund revenue. Plaintiffs are also seeking preliminary and permanent injunctions to protect their confidential information, franchise relationships and brand, per Action News Now. The defendants have not yet filed a court response to the lawsuit.
Founded in 2020, West Coast Sourdough now operates more than 50 restaurants across multiple states, with 80 more in development with franchise partners, Action News Now reports. West Coast Sourdough describes itself as a San Francisco-based restaurant company specializing in sandwiches made with freshly baked sourdough bread, soups, salads, flatbreads and other menu items, and says it has developed a branded restaurant concept and operating system to support its franchise network. The company says it intends to pursue its claims through the judicial process.
Expansion Continued Even Amid the Legal Battles
The litigation has unfolded even as West Coast Sourdough kept growing in other markets. The chain opened its first Reno location, with another location planned, according to This Is Reno.
Sourdough & Co. has past legal ties to West Coast Sourdough's founders. How the pending executive lawsuits and the new $15 million corporate complaint will ultimately interact in Sacramento County Superior Court remains to be seen as the case moves forward.
