By Marcus Bennett

West Coast Sourdough's franchisor is suing its former CEO and a group of ex-franchisees for $15 million, accusing them of building a competing chain from its recipes, suppliers and systems. The suit, filed Oct. 12 in Sacramento County Superior Court, marks the second front in a legal fight that began in February.

The plaintiffs, WCSD Inc. and SFB Holdings Inc., allege that former CEO Karndeep "Kay" Uppal worked with Gurdeep Bains, Kaldeep Uppal, Rajwinder Singh, Balraj Singh and Gurpreet Singh Brar to launch Cali Rays Sourdough Deli using confidential information taken from the brand. The 54-unit West Coast Sourdough system, with roughly 80 units in development, now competes directly against a concept the complaint describes as its mirror.

The damages claim has structure. The franchisor says it lost more than $5 million in royalty and marketing fund revenue. The remainder covers alleged damage to brand reputation and goodwill plus misuse of trade secrets.

What does the counterclaim allege?

Uppal sued first. In February, according to the Sacramento Business Journal, he filed a wrongful termination claim. He said the board ousted him while he was on vacation. His complaint argues his former business partners breached fiduciary duties and diverted corporate assets to benefit their own families. He also says the franchisor blocked him from company records.

Uppal's suit goes further. He claims some franchise agreements were not lawful and that the franchisor abdicated its quality control and policing obligations, which he says degraded quality across the system. If proven, that claim would complicate WCSD's own argument that franchisees damaged the brand.

Damon Bhatia, West Coast Sourdough's co-founder and chief financial officer, denies the allegations. He said the board terminated Uppal fairly because of his own misconduct. He declined to give specifics. That gap matters; the company's defense rests on conduct it has not yet detailed publicly.

How many stores changed flags?

The conversion numbers are the concrete stakes. Cali Rays has grown to about 22 units, the Sacramento Business Journal reported, many of them converted West Coast Sourdough locations. Raj Singh, a former franchisee, rebranded some of his units to Cali Rays, according to the Fresno Bee.

Bhatia said the converting operators remained bound by their West Coast Sourdough agreements. "They broke their agreements without notice," he said.

The menus overlap heavily. Both brands sell sandwiches on sourdough baguettes, plus flatbreads, soups and salads. Cali Rays adds wraps. West Coast Sourdough keeps mac and cheese. Bhatia dismissed the differences as cosmetic. "Changing the color [of a company's website] doesn't make it a different company," he said.

The lawsuit also alleges the former franchisees tried to recruit other operators out of the West Coast Sourdough system. For a franchisor with 80 units in development, defection risk at that scale threatens the pipeline itself, not just the existing base.

What is not said?

Cali Rays officials did not respond to requests for comment. Neither side has quantified the alleged asset diversion Uppal describes, and the franchisor has not disclosed how many of its 54 units are company-operated versus franchised. The $5 million royalty figure implies the conversions began some time ago; the timeline remains undisclosed.

A menu comparison will not settle this case. California courts will weigh trade secret claims against Uppal's allegation that the franchisor itself failed to police quality, and both suits are likely to proceed slowly through Sacramento County Superior Court.