Ray Kroc was a salesman that had no limits on what he would do to be successful. The brothers had a vision to operate the company in the way that they had it structured. But the biggest difference to me was the lack of information the Brothers had. Ray Kroc knew his way around the business and its legal terms. He was all about making the money. He just wanted a way to leverage himself and the McDonalds Corporation.
Yes, I do think the Brothers did the right thing because Ray Kroc was able to market McDonalds to become what it was. This goes beyond just the fast system of working in the kitchen. He was able to expand the franchise nationally. Also, the fight to put up against Ray Kroc would have been too expensive. This is why I feel that the deal was both a good and bad deal. I say this because the Brothers were able to receive more money than they possibly would have. However, they lost all ownership and don’t have a say in something they started. To add on, they were only receiving a very small amount to what they could have been making. Ray went on to make billions of dollars.
The local store franchisees made money by making a percentage of what the McDonalds makes at their very location. They would be charged a fee to use the name and the methods of the system.
Ray Kroc made money by buying the land that the franchise was located on. He was able to sell it back to the franchisees and created extra leverage in all situations. He made money in the real estate aspect and made money on the land that was owned with the business. While the franchisees were getting a percentage of the profits only in their location.
This does not change my view of McDonalds. I already knew that it was able to leverage itself in many ways. I knew they were making a lot of money from the quality of their food. I just didnt know that the land was owned as well. The film just changed my view on business.
