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

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.