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

Ray Kroc and the McDonald brothers are very different. Ray Kroc had a hunger for ambition. That hunger impacted his moral compass and business approach. The McDonald, brothers had a focus on doing the “right thing”. It is obvious that the McDonald brother had clear values and love everything about the sole proprietorship business they created. This meant caring for their food, employees, customers, etc. While Ray Kroc only cared about making more revenue, more profit, self-benefit, etc. This meant stepping over anyone or anything to strive for his goal.  Ray Kroc had a different approach toward the McDonald’s restaurant, he transformed the business into a franchiser and corporation.

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 think the McDonald brothers did the right thing by selling out McDonald’s. In my opinion, they did not obtain the proper legal advice on how to approach the situation they faced. Although it looked like everything was placed in Ray’s favor, the McDonald brother had everything to prove that it was their original idea and business. There was a lawsuit that could have been pursued or at least a better agreement. Ray did not give the McDonald brothers a good deal, he was very greedy. The fact that an agreement was made over words and a handshake is insane “if it is not written on paper, then it does not exist”.

How did the local store franchisees make money?

The Local franchisees made money over a business that was already established. They were given the structure of the business, training, recipes, blueprints, name, and brand well know.

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

Knoc started making money by selling franchise rights to entrepreneurs and receiving a percentage of the profit per location. Knoc failed to make enough money from this approach. He then switches to owning the land where McDonald’s Restaurants were built. Thus, increasing Knoc’s income by a whole lot. This allowed him to make money through rental income. Leasing, and real estate assets. Eventually, Knoc brought McDonald off the brother making him the sole owner and owner of all the stocks and shares.

Does this film change your view of McDonald’s?

This film changed my view of McDonald’s. It was distraught to see how Knoc underestimated the hard work and originality of the McDonald’s brothers. This brings to my attention the risks of franchising and the dangers of greed and ambition.