Cali Rays Sourdough Deli controversies

West Coast Sourdough sues Cali Rays for $15 million over alleged trade secret misuse and franchise recruitment

Lawsuit filed

WCSD, Inc., the franchisor of West Coast Sourdough, and SFB Holdings Inc. filed a lawsuit in Sacramento County Superior Court (Case No. 26CV023767) against Cali Rays Sourdough Deli, CR Development, Inc. and six individual defendants, seeking more than $15 million in damages plus preliminary and permanent injunctions. The complaint alleges the defendants used West Coast Sourdough's confidential information, business systems and established brand identity — including recipes, food preparation methods, supplier information and operating systems — to build a competing restaurant operation and to recruit franchisees away from the West Coast Sourdough system while their franchise agreements remained in effect. Claims include interference with contractual relationships, misappropriation of trade secrets and unfair competition. The defendants have not yet responded in court.

Stated objective. The lawsuit seeks more than $15 million in damages, and the plaintiffs are seeking preliminary and permanent injunctions to protect their confidential information, franchise relationships and brand from further misuse.