The Founder

  1. What made the Ray Kroc and the brothers different form each other is that the brothers were more concerned about the the quality and reputation of the McDonald’s restaurant. Ray was more about expanding the business across the country and making a profit off of those expansions.
  2. The deal that Ray gave them has some pros and cons. The con was settling the deal on a handshake and not having a written contract from Ray for getting royalties payment to the brothers which would be alot of money today. The pro was they did get about 2.7 million dollars for selling the business to Ray which at the time is alot of money during the 60’s.
  3. The local franchisees made their money based on the market of the McDonalds corporation. The company makes money by leveraging its products to franchisees and to build a McDonalds, they have to lease the building from property owned by Mcdonald’s corporation.
  4. Kroc made money by owning the land property of the business, making him more of a realtor than a restaurant owner. The franchisees are making money based on the market of McDonalds which is a guarantee moneymaker just by the name alone so all the franchisees owners have to do is run the restaurant and make sure that their restaurant is up to par.
  5. It was really interesting how Mcdonalds was formed. The history behind was really intriguing, and unfortunately what happen to the brothers is sad, but in business sometimes things don’t always go your way, especially with the people you partner with have different goals in mind.