California’s economy is booming, but the state’s poorest residents are falling further and further behind.
Edward Navales realized a career in large tech firms wasn’t for him, and in 2008 he decided to open his own business. Armed with a University of Texas MBA and guided by a desire to do something meaningful, he decided to start a firm in the health care sector. As he surveyed his options, it seemed like a franchise agreement would be the quickest and surest way to success.
He invested savings, took out a Small Business Administration loan and entered into an agreement with Bright Star Healthcare, a small but fast-growing home health care company. Bright Star promised its franchisees support and flexibility. According to Navales, the reality was something else entirely.
“What I found was inadequate support, unrealistic and predatory minimum sales targets and costly vendor requirements,” Navales said. “I soon learned my fellow franchisees were experiencing the same challenges.” Bright Star, claimed Navales, wasn’t responsive to their requests and complaints,