What makes Ray Kroc and the brothers different from each other?
There were many differences between Ray Kroc and the McDonald brothers. Just from first impressions, Ray immediately came off as the generic pushy monotoned salesman that stuck with the same spiel over and over again even though it was failing. Whereas, the brothers’ impression came off as wholesome and original and unlike Ray when they did face challenges or saw that a particular problem needed to be solved they would try different methods to find a solution (mapping the layout of restaurant on tennis court). They also had differences in morals and what was important to them. Rays’ dreams had no endpoint and grew bigger and bigger despite the huge risks and morality involved. The brothers had their own dreams as well but were content after reaching it and cared more about maintaining it well.
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 think that it comes down to the fact that the brothers didn’t even have a choice to decide if it was a right or wrong decision, by that point it was too late for them to sue and truly win because as Ray threatened them “he’d bury them in court costs alone”. Also, whether the brothers got a good deal or not is a question of how much they feel their idea and their name cost. Yes they got a fortune for that time but they eventually lost their precious dream business when Ray opened up a franchise across the street and lost the right to their own name.
How did the local store franchisees make money?
Although not much, local franchisees made money from the profits of their sales after paying the franchisor the royalties and fees.
How did Kroc make money? How was that different than the franchisees, running the local stores?
At first, Kroc made money by getting a percentage of the profits from the franchise rights he sold to his friends. However, after he realized that he wasn’t actually getting much and was about to lose his house, he made a bounce back after he met Sonneborn who enlightened him on profiting more through real estate. By making it that franchises could only build a McDonals on the land leased from his company, he would see immense profits compared to before.
Does this film change your view of McDonald’s?
This film definitely shocked me about the origins of how McDonald’s first started and educated me a lot on the world of franchises. I felt very disappointed in Kroc’s ways (personal/professional choices) and see even more now why supporting local businesses is important.