West Coast Sourdough sues Cali Rays seeking more than $15 million

West Coast Sourdough said on Oct. 12, 2026 that it had filed a lawsuit in Sacramento County Superior Court seeking more than $15 million over allegations that Cali Rays Sourdough Deli and other defendants used its confidential information and business systems to establish a competing restaurant operation. The company also alleges that the defendants recruited franchisees away from its network.

The plaintiffs are WCSD, Inc., the West Coast Sourdough franchisor, and SFB Holdings Inc. According to the company’s announcement, the defendants had not yet responded in court; the claims remain allegations in a complaint.

Dispute centres on restaurant conversions

The lawsuit follows the conversion of multiple former West Coast Sourdough restaurants to the Cali Rays Sourdough Deli name. The complaint alleges that those restaurants left the franchise network before their West Coast Sourdough agreements had expired.

West Coast Sourdough contends that the changes involved more than replacing restaurant branding. It alleges that Cali Rays used its recipes, food preparation methods, supplier information and operating systems, while keeping menus, restaurant designs and layouts that closely resembled those of the West Coast Sourdough concept.

The defendants named in the action are Cali Rays Sourdough Deli, CR Development, Inc., Gurdeep Bains, Kaldeep Uppal, Karndeep “Kay” Uppal, Rajwinder Singh, Balraj Singh and Gurpreet Singh Brar. The case is numbered 26CV023767, and Benbrook Law Group of Sacramento represents the plaintiffs.

Franchise recruitment and revenue claims

According to West Coast Sourdough’s account of the complaint, the defendants drew on their knowledge of its franchise network to approach franchisees. The alleged inducements included reduced or waived fees and help with conversions to encourage operators to leave existing agreements early.

The company also alleges that the defendants used its established brand and goodwill in ways that could leave customers confused about the competing restaurants’ affiliation. Its claims include interference with contractual relationships, trade secret misappropriation and unfair competition.

The damages sought include alleged losses of more than $6 million in royalty and marketing fund revenue, alongside harm to brand goodwill and losses attributed to alleged trade secret misuse. Those revenue claims and the disputed franchise agreements place the network’s contractual and financial relationships at the centre of the case.

Plaintiffs seek injunctions alongside damages

West Coast Sourdough said it continues to operate more than 50 restaurants across multiple states, with 80 more in development with franchise partners. It maintains that business concerns do not excuse misuse of confidential information, proprietary systems or trademarks, or remove franchisees’ contractual obligations.

The plaintiffs are also seeking preliminary and permanent injunctions against further alleged misuse of their confidential information, franchise relationships and brand. West Coast Sourdough said it intends to pursue the claims through the courts.