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Fortune
Fortune
Matt Haller

Why fast-food franchisees could be the next cohort to leave California

(Credit: Justin Sullivan—Getty Images)

Alex Johnson is the kind of entrepreneur who built California. A second-generation small business owner in the San Francisco Bay Area, he and his family run 10 fast-food franchises employing 140 people, most of them first-time job holders like disadvantaged youth and new immigrants. Alex’s family has spent 30 years growing their small business. They’ve never had to close a store.

But the good times are likely ending. He just signed a deal to run nine stores in neighboring Nevada. These may soon be the only stores he runs, because California’s leaders have launched an all-out attack on his business model.

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