World of Sourdough Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$285,800 - $568,725
Franchise Fee
$49,500
Total US Locations
80
Business Summary
World of Sourdough Franchising, LLC operates restaurants that specialize in offering a wide selection of handcrafted sandwiches and other food items. These restaurants provide both eat-in and carry-out dining services and utilize the company's distinctive business format and proprietary marks. The menu features proprietary and/or branded products, recipes, formulae, and techniques, alongside other designated food and beverage items.
Corporate History
World of Sourdough Franchising, LLC is a Texas limited liability company that was formed on March 18, 2021. The company first began offering franchises in 2021. It conducts business under its company name, World of Sourdough Franchising, LLC, and also under the names World of Sourdough and WOSD. The company has not engaged in any other business activities or offered franchises in other lines of business.
Financial Overview
Investment Range
$285,800 - $568,725
Franchise Fee (Low)
$49,500
Franchise Fee (High)
$49,500
Royalty %
5%
Equipment Costs (Low)
$60,500
Equipment Costs (High)
$115,500
Working Capital
$11,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
World of Sourdough Franchising, LLC's financial statements indicate a negative members' equity of ($1,514,625) as of December 31, 2024, down from ($389,246) in 2023. The independent auditor's report for 2024 and 2023 states an unqualified opinion, meaning the financial statements present fairly in all material respects. The auditor's report for 2024 emphasizes that the company has extensive transactions and relationships with its affiliates, and therefore, the financial statements may not be indicative of results if the company operated without such affiliations. There are no specific going concern qualifications noted by the auditor in their opinion.
Financing Details
World of Sourdough Franchising, LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor will not guarantee any notes, leases, or other obligations on behalf of the franchisees.
Performance Metrics
Total US Locations
80
Franchised Units
78
Corporate Units
2
Avg Square Footage
1,375
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
World of Sourdough Franchising, LLC has been involved in three litigation cases. One case, GSD Foods, Inc. v. Sourdough & Co., Inc., filed in March 2020, initially involved Sourdough & Co. but was amended in June 2023 to include World of Sourdough Franchising, LLC and its principals under a theory of secondary liability. This lawsuit alleged violations of the California Franchise Investment Law, unfair business practices, fraud, and other claims. The parties settled all claims in June 2024 for $240,000, and the complaint is expected to be dismissed with prejudice upon final payment. Another case, Trademark Pizza Company, LLC v. Lowell Steven Presson, filed in July 2020, involved claims of breach of contract and tortious interference. A hearing to dismiss is set for March 2025, with an expectation of dismissal with prejudice. The third case, Trademark Pizza Company, LLC v. Steve Presson, filed in November 2019, asserted claims of failure to register franchise, misrepresentation, and unfair business practices. A settlement hearing for this case is scheduled for May 2025, with a trial date set for July 2025.
Bankruptcy History
World of Sourdough Franchising, LLC has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcies are required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement, World of Sourdough Franchising, LLC franchisees must provide written notice of their intent to renew between nine months and one year before the agreement's expiration date. Franchisees must not be in default of their current agreement and should not have received more than three written notices of default during the preceding term. Upon renewal, franchisees are required to sign World of Sourdough Franchising, LLC's then-current franchise agreement, which may have different terms and fees. They must also pay a $10,000 renewal fee for each five-year renewal term, refurbish their franchised restaurant to meet current standards for new franchisees, sign a general release of claims against World of Sourdough Franchising, LLC, and comply with current qualification and training requirements. Renewal is not an option if World of Sourdough Franchising, LLC is not offering new franchises at the time of expiration or within nine months prior.
Training & Support Program
Franchisor Assistance
World of Sourdough Franchising, LLC provides various forms of assistance to its franchisees. Before opening, World of Sourdough Franchising, LLC approves the restaurant's location and protected territory, and provides initial training for up to two individuals at no fee. World of Sourdough Franchising, LLC also furnishes prototype plans and specifications for restaurant construction and design, provides a list of required equipment and initial inventory, and loans a copy of its Operating Manual. World of Sourdough Franchising, LLC informs franchisees of trade procedures, approved suppliers, and inspects the restaurant for opening. After opening, World of Sourdough Franchising, LLC permits the use of its marks and copyrighted materials, continues to loan and update the Operating Manual, provides existing trade and operating procedures, and supplies business and reporting forms. World of Sourdough Franchising, LLC also offers periodic assistance as deemed necessary, sends newsletters, and may license proprietary software to franchisees in the future for a fee. The initial training program includes both classroom and on-the-job training.
Initial Training Hours
328
Training Location
Corporate headquarters in Granite Bay, California or as World of Sourdough Franchising, LLC otherwise specify
Ongoing Support
World of Sourdough Franchising, LLC provides ongoing support to its franchisees through various means. This includes issuing memos and newsletters with continuous training relevant to the franchised business. Franchisees also have access to additional or refresher training programs delivered via telephone, webinars, or video training at no extra cost. In specific situations, World of Sourdough Franchising, LLC may require owners or managers to complete additional or refresher training programs to improve business operations. For these mandatory, in-person training programs, franchisees may be charged a per diem fee plus travel expenses. World of Sourdough Franchising, LLC may also hold annual conferences to discuss sales techniques, personnel training, bookkeeping, accounting, inventory control, performance standards, advertising programs, and merchandising procedures, which may incur a fee for attendance and associated travel costs for franchisees and their employees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
World of Sourdough Franchising, LLC grants a protected territory defined as a two-mile radius around the franchisee's specific location. This means World of Sourdough Franchising, LLC will not award another franchise to operate a World of Sourdough Franchised Restaurant within this two-mile radius, with exceptions for locations in indoor shopping malls, airports, college campuses, military bases, or inside other retail establishments like convenience stores or gas stations. The size of the territory may be adjusted to account for population density, highway exits, bridges, natural structures, and waterways. Additionally, World of Sourdough Franchising, LLC will not operate a World of Sourdough Franchised Restaurant within three miles of an existing West Coast Sourdough store due to a settlement agreement.
Staffing Notes
World of Sourdough Franchising, LLC requires that the franchised restaurant always be under the on-site supervision of a manager, who can either be the franchisee or another approved individual who has successfully completed the initial and any mandatory training programs. This manager must dedicate their full efforts to the restaurant's operation and not hold interest in any competing business. Franchisees are also required to hire their initial staff of employees before World of Sourdough Franchising, LLC's representative arrives for initial on-site training and opening assistance. The training program includes subjects such as food preparation, positional training, customer service, manager responsibilities, scheduling, and controlling labor costs, as well as recommendations for hiring, training, and managing employees.