Category Archives: The Founder

These posts will be added to our Student Work menu item. This category should be used for submitting posts for our Unit #7 Assignment.

The founder assignment

Gianna silva

  1. What makes Ray Kroc and the brothers different from each other?
  • What makes Ray Kroc and the brothers different from each other is that Ray wanted to make as much money as possible and by trying to achieve that goal he wanted to expand the number of stores they had so they would be able to branch out into different places for more people to talk about their company. The McDonald’s brothers were opposed to that because they were concerned that if the business grew they would potentially lose control of their business, the quality of their food and lose the connections they had with their customers. 
  1. Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?
  • I do not believe that the McDonald’s brothers did the right thing by selling out to Ray Kroc. I say this because the brothers lost out on so much money they could’ve made. Ray basically robbed them out of a franchise they created. I don’t believe Ray gave them a good deal because initially he promised them an amount he didn’t stick to. 
  1. How did the local store franchisees make money?
  • The local store franchise made money by the established model on how to run the business from the Mcdonalds brothers. By following this it helped them from making foolish decisions for the company. 
  1. How did Kroc make money? How was that different than the franchisees, running the local stores?
  • Kroc made more money by expanding all the locations of the McDonald’s stores. This was so beneficial to the company because McDonald’s started to get talked about more and it grew to be what it is today. It also helped Kroc because it got him into the real estate market. 
  1. Does this film change your view of McDonald’s?
  • The fill really does change my view of McDonald’s because you start to wonder what if the brothers never sold it, what if Kroc listened to them and never ended up expanding the locations of the stores. Like honestly what would most people be eating because McDonald’s is huge! But seriously I don’t think anyone will ever stop eating there.

The Founder Assignment Example

1.The difference between Ray Kroc and the brothers was that Ray Kroc had a bigger plan and had a much larger vision than the brothers. Kroc knew that he could grow McDonald’s globally and make it a big brand. As for the brothers, they only saw McDonald’s as a small business. Ray Kroc also knew that he was going to take risks and work long hours so he can grow the business. The brothers did not think of that.

2. I don’t think the brothers did the right thing to sell McDonald’s to Ray Kroc because the brothers could’ve honestly made the business grow themselves and make McDonald’s available worldwide. Ray Kroc did give the brothers a good deal because Kroc basically told the brothers that he was the best person to take charge of McDonald’s and that he would lead it to success.

3. The way the local franchise made money was by selling McDonald’s menu items. Costumers pays these items and the money goes to the franchise.

4. Kroc made money by franchises fees which was made by selling franchises to individuals who wanted to open a McDonald’s. Kroc also made money by royalties, and even real estate income.

5.This film did not change my view on McDonalds. I honestly just hate the fact that the brothers sold the McDonalds business to Ray Kroc. They could’ve made McDonald a big business but at the end, Ray Kroc was the one that made more profit and he took the risk to grow McDonalds globally.  Very smart from him.

The Founder Assignment

1- Ray Kroc was a determined and ambitious businessman he saw the potential in the McDonalds concept he focused on developing a global brand and franchising. The McDonald brother on the other hand were more focused on keeping the quality and simplicity of their first restaurant they wanted to ensure that every customer received the same great experience, the brothers were committed to maintaining the quality of the brand whereas Ray was motivated by growth and expansion.

2- I don’t think the McDonald brother made the correct decision in selling out, Ray scammed the brothers and gave them a small percentage of the franchise than he promised the brothers ended up losing out money due to the unfair deal.

3- By managing the restaurants on their own the franchise turned into profits they committed to McDonald’s standards while putting their own ideas into practice.

4-  By selling franchise to people who wanted to open a McDonalds also made money by royalties and real estate income.

5- I was unaware of the history of the McDonald’s franchise before watching the movie which certainly opened my eyes I felt sorry for the brothers since they got scammed when they could’ve done more for their business with their own ideas.

The Founder Assignment-Jada Hunter

1.What makes ray croc different from the bothers?

What makes ray croc different from the brothers is that he had a bigger dream of expanding the restaurant globally and turning into a franchise know worldwide. While the brother focused on just improving the one restaurant.

2.Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?

Although Mcdonalds became a big restaurant it was not the right thing for the McDonalds brothers to sell out to Ray Croc because they end up losing out on all that money due to the unfair deal.

3.How did the local store franchisees make money?

The local franchisees made money buy teaching the methods while the location and equipment was already there. McDonalds was run independently was easier to make money by cutting the cost mainly of the bult in walk in freezer essentially everything was run effectively when putting all those ice cream crates in the restaurant. The only people they had to pay really was the franchise owners and owner.

4.How did Kroc make money? How was that different than the franchisees, running the local stores?

Kroc made money by expanding McDonalds through franchisees and charging monthly rent to them to run McDonalds which he later made enough to buy McDonalds from the brothers. This was different from the franchisees running the local stores by they would receive profit by the actual customers transaction through their sales of food. So, they must uphold responsibilities in order to earn profit day to day.

5.Does this film change your view of McDonald’s?

This film definitely changes my view of Mcdonalds because to be honest before learning business the whole system in college i only saw it as a cheap fast-food place to eat at for the convenience and the center of all fast-food places. Now studying business, I see McDonalds as really historical way to run a business that really invented the standard.

The Founder Assignment

1. What makes Ray Kroc and the brothers different from each other?
Ray Kroc was an aspiring businessman and the brothers were business owners and entrepreneurs. Kroc had ideas in expanding profit in business while he was only selling milkshake machines. The brothers developed their business into a mass and fast productive local food restaurant. When Kroc met the brothers he was the one who saw the opportunity in developing more franchises to expand the local business. Kroc focuses more on the quantity and profit of a business and the brothers focused more on controlling the quality of their business.
2. Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?
I don’t think the brothers did the right thing by selling out to Ray Kroc. I think they could have learned from Ray Kroc and improved their business and themselves if they wanted the profit. On the other hand, for the business itself that happened at the right moment and expanded it further. Perhaps if the brothers would have took some time and learned over time the things that Kroc wanted to do for the business, they could have made their business expand just how Kroc made it expand but at a later time than it did when Kroc took over. Ray Kroc did not give the brothers a good deal at all. Because the business did so well, he could have gave them more. It was their production and granted, Kroc was the one who opened the franchises all over but they just had different values at the time but that doesn’t mean that Kroc owned the rights of all of the business. The brothers started it so they deserved more than that.
3. How did the local store franchisees make money?
The local store franchises made their money by following the established processes made by McDonalds. Faster production of food could take in more customers especially working ones who had money to pay for a quick meal on their break after working. The use of products like InstaMix helped the business keep more profit instead of having to spend more money on inventory.
4. How did Kroc make money? How was that different than the franchisees, running the local stores?
Ray expanded and spoke to people who would invest in the expanding business. He went into real estate and put forth the notion of owning the land that the franchises were on. He saw where the local franchises were lacking and he stretched his businessman ideas where he could, to make the business do more for them the way he believed it could. He made it different than the franchisees running the local stores because the local stores were just making enough to keep itself going but they were not thinking bigger like Kroc was.
5. Does this film change your view of McDonald’s?
The film changed the way I view McDonalds. Usually, there are many negative stories about McDonalds and the type of food they sell. If I was easily moved by notions that were strong negative opinions I would probably think McDonalds was a scam from the get go after watching the film. However, knowing that the fast food that McDonald’s serves has always been a business move rather than solely feeding people garbage just to profit off of the bad ways people eat, I appreciate what their purpose was. Even if Kroc came in to expand franchise, the business was still built on the brothers’ purpose in their food quality which makes me feel better about eating and buying McDonalds when I need to get something quick.

The Founder Assignment

In the film, The Founder, there are glaring differences between Ray Kroc and the McDonald’s brothers, Richard and Maurice. Ray Kroc is shown to have one thing on his mind; money. He values efficiency, cost effectiveness, and the expansion of the business, even if it means cutting corners, or a lower quality product. The McDonald’s brothers on the other hand, are more invested in the experience of their customers, and the quality of their food. They value quality and integrity.

Did the McDonald’s brothers do the right thing by selling out to Ray Kroc? The answer changes depending on the party in question. For the McDonald’s brothers, the answer would be no. Everything that the McDonald’s brothers valued was disregarded by Ray Kroc, and financially, they were robbed in my opinion. The answer for consumers would be yes. If not for Kroc’s utilization of the McDonald’s brothers’ innovative design for the kitchen, and super-efficient machines and techniques for producing food in seconds, McDonald’s might not have become the powerhouse it is today in the fast-food industry. Kroc’s ideas lead to lower prices and wait times for consumers. As to whether or not the brothers got a good deal from Kroc, it’s a resounding no for me. They were way underpaid for the value that was McDonalds and screwed out of the “handshake deal” they made with Kroc, who never held up his end of the deal.

How did the local store franchises make money? The local store makes their money by their sales. The more business they get in the area they built McDonalds. While a cut still has to be given to the franchisor. Ray Kroc took 4% of royalties while also taking a cut of rent each month due to him owning and making all franchise on land he bought.

After watching the movie, I see Mcdonalds in a worse light than I already did. Seeing how much care the brothers had for their business, the values they held especially for their customers. I wish they were able to fight harder for what they worked so hard to build. From a business standpoint I do understand Rays thought process and all the potential he saw. I personally feel like we need more people like the Mcdonalds brothers. 10/10 don’t recommend Mcdonalds food!!!

 

The Founder Assignment Thomas Mahoney

    1. Roy Kroc was a milkshake machine salesman from Illinois hungry for business opportunity as he was not the most successful in his field. Upon meeting the McDonald brothers Roy became mesmerized by the structure of the McDonalds business when traveling to California. The McDonald brothers were genius business owners who built the franchise from the ground up on a new and efficient process to mass produce their food. Roy immediately recognized this opportunity and new he could expand with it. The McDonald brothers were more focused on staying a booming local business.
    2. I don’t think the McDonald brothers did the right thing by selling out however Roy did not stick to his word and offered them a way smaller percentage of the franchises revenue then promised. As what appeared to be a good deal at first, I don’t think the McDonald brothers realized the true potential of their company and ultimately got somewhat scammed.
    3. The local stores made their money by using the fast and efficient business model the McDonald brothers founded the franchise on. The success of the franchise made it capable of covering costs required to run each location of the business itself.
    4. Kroc made his money by beginning to expand the business and opening up new locations in different cities. This placed him in a prestigious position in the real estate market due to the booming success of the franchise. On top of this he was collecting more profit that each location was making itself.
    5. This movie definitely opened my eyes to the history of the McDonalds franchise that I was not aware of. It made me have sympathy for the brothers as they got robbed of millions of dollars as well as a franchise titled by their last name. I dont eat McDonalds very often but i dont mind it once in a while and it will most likely stay that way. I found this film very interesting and informative.

The Founder Assignment

Brandon Becerril

  1. The Mcdonalds brothers different than Ray Kroc with their ideals and how they wanted the restaurants run.  Ray had a more aggressive approach to making money and was more concerned with the bottom line than the brothers who wanted to keep Mcdonalds running to their system.  The brothers found some practices unethical like wanting to take a bigger percentage of revenue from the franchises and introducing powdered milkshakes to help cut cost.

2. The brothers definitely got the short end of the stick when they decided to sell to Kroc.  They lost out of millions of dollars in revenue by agreeing to the handshake deal.  The brothers never went to collect their royalties meaning they lost out on millions of dollars. I think the worst part of the deal was how they lost their rights to use their own name for their restaurant.

3. The local franchises made their money by following the already established model on how to run the business from the Mcdonalds brothers.  This kept their overhead costs low by not overstaffing and overspending on food costs by sticking to the main items on the menu.  Their service was quick and cost effective.

4. Kroc started making real money when he started owning and leasing the land the franchises were on.  This effectively put Kroc in the real estate business as well as the food service industry.  By owning the land he was able to get steady rent income from all the stores as well his royalties from each stores revenue.

5. My view or opinion on Mcdonalds doesn’t really change.  They are a fast food chain that provides cheap food and quick service, going for quantity over quality. My opinion on Kroc very much shifted after watching the movie, he was a real shark and knew how to take advantage of his opportunities.  He did say business was like war and he treated it as such, effectively outing his ex-wife and the brothers out of millions, while taking the credit for himself.

The Founder Assignment – Sheldon Clark

What makes Ray Kroc and the Mcdonald brothers different from each other? 

Ray Kroc starts out as a persistent yet unsuccessful milkshake machine salesman out of Illinois. Until he runs into the brothers who request 8 of his machines be delivered to their restaurant, he seems to be down on his luck. The Mcdonald brothers had at least 10-15 years of experience running their own business before they met the infamous Kroc. Through trial and error, they eventually manage to get their burger business off the ground and it becomes a hotspot in San Bernardino, California.

While each of them faced their own adversities starting out, Dick is a creative to his core. He introduced the Speedee service system which helped shape the way we think of fast food today. With the help of his brother Mac, they were able to perfect this system; an addition to what made them so popular. Impressed by the high-quality food and exceptionally quick service Ray asks the brothers out to dinner. He wanted to learn the genius behind the Mcdonald’s brand.

Kroc wanted to be a part of what the brothers already had, and he saw a golden opportunity. He suggests that their brand is franchisable. He didn’t contribute any creative ideas or implement his own blueprint for their system but came along as one of their first expansion partners. When Ray and the brothers go into business together is where you can immediately see the personalities of the trio clash. An example of this is displayed early on, when Ray suggests a brand deal with Coca-Cola on the cups. Dick says it’s not Mcdonalds, and he doesn’t like the idea of an Ad on their product. Ray didn’t get the answer he wanted and hangs up the phone in Richard’s face. He does this several times throughout the movie, and one of the brothers even state he is a hothead. The McDonalds’ I feel, slowly started to realize that possibly this is someone they shouldn’t have trusted.

Do you think the Mcdonalds brothers did the right thing by selling out? Did Ray Kroc give them a good deal?
I believe the brothers did a very generous thing by offering to go into business with Kroc, but they got way more than they bargained for in conclusion. Mac wanted to make his brother’s dream come true and in a way it did but ultimately, they lost their name and brand. I wouldn’t say the brothers did the right thing by selling out. They got 2.3 million for their idea and company name but lost out on at least 100 million in royalties because their handshake deal wasn’t honored, and it was never in writing. Ray Kroc is the Don King of burgers; he completely undermined the entire operation. The Big M; the Mcdonalds brothers’ new restaurant was only able to stay open for one year before being torn down in ’72. Ray Kroc intentionally set up a franchise right down the street for them to ensure their demise. They got a terrible deal.

How did the local store franchisees make their money?
The local stores only made money from actual sales. If nobody was flipping burgers nobody was making money. Overhead costs were deducted from total revenue and rent was to be paid for the land the store stood on.

How did Ray Kroc make money? How was that different from the local franchisees?
Kroc met a man named Harry Sonneborn, who suggested he should stop selling burgers and start selling real estate. Kroc started to buy the plots of land the franchises were to be built on. He would then lease the land to the new store owners; and charge the stores rent, or a percentage of sales which ever was greater. He basically pulled off a cosmic double dipping scheme. It was different, because he was now as Harry suggested not only selling burgers but land also.

Did this movie change your view of Mcdonalds?   

When the movie ended, I felt sympathy for the brothers. I felt as is Ray Kroc did them extremely wrong, but I don’t think I can take back the amount if times I’ve ate there in my life. To make this assignment more fun, I ordered Mcdonalds for lunch off uber eats and watched the movie. I wouldn’t say it exactly changed my view.  One thing I can say is if Kroc hadn’t stepped in Mcdonalds might have become another small-town staple, or a hole in the wall burger spot you visited on vacation in California. It’s messed up how Mcdonald’s got so big, but Kroc came in with a global vision while the brothers were happy with being local superstars.

The Founder Assignment – Annmaria Patterson

  1. Ray Crock was a persistent businessman, and the brothers were business owners. This was shown in every aspect of the movie. Ray saw the vision immediately he was always trying to make something out of anything. Ray literally had a skill he knew how to truly profit and capitalize off ideas. Ray was willing to take the risk that others may opt of, he saw an opportunity and didn’t want to miss it at any cost. He built up knowledge of how to operate and officially run franchise. The brothers were creative thinkers, they put their heads together to create a great concept of fast-food businesses. They worked and perfected it until it was successful in their town. However, the brothers were focused on their brand and the CSR behind their brand they wanted to ensure they were providing the best quality products for their consumers. The Brothers had the blueprint of the business, but they lacked the true knowledge of how businesses work. The Brothers were very apprehensive about their business brand and the quality of their work they weren’t so open or quick to taking risky chances.
  2. I don’t think the brothers should’ve sold to Ray because they didn’t share the same values! Rays mission was to capitalize and make as much money as he could the brothers wanted their own legacy and restaurant that was respected. Ray was willing to toss all the quality out the window for a quick easy way to get a job done. The contract signing was entirely the McDonalds brothers’ idea, they wanted to ensure the safety of their plan. However, there was certain specifications that should’ve been discussed before even taking on or considering the opportunity in the first place. Once changes needed to be made the contract should have been redrafted and then resigned, this step or misstep allowed Ray to “get over” on the brothers legally. The 1% royalty deal in the end should have been entered into the contract and not signed until included. The brothers felt uneasy and still went against their better judgment a decision they lived to regret forever. Ray took a big chance on this idea, even though it wasn’t his he truly trusted the vision the McDonalds brothers had. So much so he got his house appraised just to get the ball rolling, in the end he put a lot of risk into making this Franchise operation run and deserves to see a profit from his investments. Ray Kroc didn’t give the brothers a good deal, the brothers lost their first location the blueprint for their restaurant and even their name! This wasn’t a win on their part at all! They created a whole new era of eating and got nothing out of it. the only location they were able to keep they had to renounce their name and basically start new.
  3. Franchise could make a profit by running the McDonalds independently. They got the location, the materials, and equipment’s and McDonalds just came in and taught processes and practices and ensure cohesiveness. The franchise would only have to worry about paying out fees to the franchise owners and owner. The Franchise would cut the cost of labor completely by using this new fast-food model, they were able to cut cost. Another way to cut cost was to cut the bill the walk-in freezer generated. Housing all those ice cream crates ate a lot of the operational cost. The introduction of Insta Mix was revolutionary in cutting cost of the franchise owners.
  4. He pitched! Ray immediately became the franchise agent for the McDonalds brothers. Ray would pitch to a wall if it was buying, he truly believed that someone would listen because, so he never stopped selling his ideas. This mindset that Ray adapted allowed him to grow his capital, because once he had a successful model to display to possible buyers and investors there was absolutely no way someone could resist taking the opportunity of a lifetime. “You don’t build an empire off an 1/15 cut of .15 cent hamburgers, you build off owning the land that the upon which that burger is cooked” Harry J. Sonneborn. Ray quickly found that just being franchise manager for the brothers wasn’t going to cover the cost of the business expanding. The funds he was seeing after the payout was barely enough to break even. There had to be a shift in conditions in order to be able to truly operate as a franchise and continue to grow. To see a true profit and start operating to his full capacity Ray had to enter into the real estate world. Owning the land, the McDonalds operates on would be a game changer. This could and would completely change the name of the how Ray did things. A condition of the franchisee deal would be that they could only lease from Ray and Ray alone in order to open and operate a McDonalds. This provided Ray with a steady up flow stream of income and greater capital for expansion. Another condition would be the overall control over the franchisee – failure to uphold standards and policies would result in a canceled lease. “The Franchise Realty Corporation” Ray created his own franchise company; this took complete control away from the McDonalds owners. This allowed him to operate and open his franchise location however he pleased. He licensed the McDonalds brand this was a BIG MOVE This allowed him to operate under the impression of the brand. This allowed him to continue to franchise and make bigger decisions regarding the business. Once he built the demand for the fast-food chain in the smaller towns and cities, he decided to move the restaurant more developed cities. Demand grew with the stores. Selling these Franchise locations allowed him to gain profits by buying land in prime locations and charging the franchise owners rent on the property plus the fees associated with the franchising process on a whole. The franchise stores operated independently from the local/original location. The goal of the franchise owners was to gain profits in their investments. This meant reducing cost as much as possible. In an effort to reduce cost they changed original ingredients, and processes and even introduced specialty items to the menu to boost profit.
  5. Up until my college days I LOVED McDonalds, I thought I was so affordable and quick and most importantly convenient. It was everywhere and open literally all the time. I guess my love and constant consumption lead me to really look into their ingredients and practices. I started to investigate the practices of McDonalds and the affects their cutting cost have had on their consumers. It only took short dive into the rabbit hole to decided I wasn’t a fan of McDonalds and the principles at which they displayed. However, to see that this company was founded on the principles they lack today was completely dishearten. This film just confirmed the feelings I had before McDonalds don’t care about the consumer affect all they care about it profits. While I do not support McDonalds, I can’t take away from the brilliance of dominating the market and truly capitalizing off the franchise game