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

1.Ray Kroc and the McDonald’s brothers were different in several ways. Ray Kroc was a salesman, a risk-taker, and a visionary, while the McDonald’s brothers were detail-oriented, methodical, and perfectionists. Kroc saw the potential of franchising the McDonald’s concept and scaling it up nationwide, while the brothers were content with running their original restaurant in California.

2.Whether the McDonald’s brothers did the right thing by selling out to Ray Kroc is subjective and open to interpretation. From a financial standpoint, selling their concept to Kroc made them very wealthy, but it also meant losing control of their creation. Ray Kroc did offer the brothers a good deal in the sense that they received a significant amount of money upfront, plus ongoing royalties. However, Kroc went on to make billions from the franchise, while the brothers received a comparatively small fraction of that.

3.The local store franchisees made money by paying an upfront franchise fee and ongoing royalties to McDonald’s Corporation in exchange for the right to use the brand name, operating system, and products. They also had to purchase their supplies and ingredients from McDonald’s Corporation, which gave the company additional revenue.

4.Ray Kroc made money primarily by owning the franchise rights to McDonald’s and collecting royalties from the local store franchisees. He also made money from the real estate holdings of the franchise, which he bought and leased back to the franchisees at a markup. The franchisees, on the other hand, made money by running their local stores and keeping a percentage of the revenue they generated.

5.The film portrays Ray Kroc as a ruthless businessman who took advantage of the McDonald’s brothers’ idea and turned it into a global empire. Some viewers might view McDonald’s in a negative light after watching the film, while others might still appreciate the convenience and affordability of the food and the brand’s impact on American culture. I stand with those who appreciate it.

The Founder

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.

The Founder Assignment

1. Ray Kroc had a larger perspective than the brothers. Ray concentrated on growing the company by franchising the McDonald’s concept nationwide, while the brothers focused on developing the ideal fast food manufacturing method in a single site.

2. By selling out McDonald’s, the McDonald brothers did not, in my opinion, make the proper decision. They didn’t, in my perspective, get the proper legal counsel on how to handle the predicament they were in. Although it appeared that Ray had everything in his favor, the McDonald brothers had ample evidence to support their claim that the idea and business were their own. A lawsuit or at the very least, a better deal may have been pursued. Ray was exceedingly selfish and did not give the McDonald brothers a good deal.

3.Franchise owners of local stores profited by taking a cut of sales generated by McDonald’s in their specific location. To use the system’s name and procedures, they would have to pay a fee.

4. In order to start producing money, Knoc sold franchise rights to business owners in exchange for a cut of the location’s revenue. This strategy did not generate enough revenue for Knoc. Afterward, he changes to owning the property on which McDonald’s Restaurants were constructed. Hence, Knoc’s income would increase significantly. This made it possible for him to generate cash through rentals. Real estate assets and leasing. In the end, Knoc got rid of the brother, making McDonald the only shareholder and owner of all the stocks and shares.

5.I already thought of McDonald’s as a fantastic company with a global reputation for fast meal delivery, so the movie didn’t change my opinion of the company. Instead, it merely demonstrates how the company grew to be what it is now.

The founder

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.

The Founder Assignment

Ray Kroc was a struggling salesman from Illinois. There was a lot of difference between Ray and the brothers. Ray was more worried about making more through expanding the business. As for the brothers were more concerned for their product and their customer service. Ray was fascinated by their techniques. The way they would make a burger. You have the usual places ray was trying to sell to that had the food in the trays VS Mcdonald’s who had a faster way of wrapping it in paper and it’s easier for them to eat and throw away. Ray knew he wanted to be apart of it. He wanted to expand Mcdonalds into the vision he saw for it.

I think the Mcdonald’s brothers made a business mistake. The Mcdonald brothers were wealthy. Due to their main location in California. So they already made a profit on their company. For starters the Mcdonald brothers had specific codes of ethics they live by. As the franchise was building, the ethics were decreasing. Ray was in it for the money I feel. The more investors, the more franchises. And it was a repeated cycle.

Ray had a hard time understanding the type of business he was entering. Instead of seeing it as a real estate business, he saw it as a burger business. Which in reality was setting himself up for failures because he was having financial troubles. Took out a loan without anything to show for it. He needed assets. These investors he had opening all these franchises in different states were just choosing a land they liked and placing a Mcdonalds there. Instead of studying the land. Buying the land and showing them to investors or “franchisees” as they would call them to be able to double his profit on what he’s earning. So by Ray buying the land , franchisees can only buy from him and only him. Which will create him revenue before it’s even built. Plus monthly sales and what he charges for rent.

After watching the film, I have two sides. The brother’s side in which i understand how deeply they tried to protect their legacy. Ray came and basically stole their ethics, their legacy. They enjoyed their one location and honestly made income with that one location. And I do feel as if they gave up quickly. Now leading to Ray’s side. In a business he had a vision. A vision that made him billions. Got him thousands of restaurants. Sufficient land. He didn’t think small. He thought big. He though millions. He knew that the Mcdonald’s name was going to be something. Which any business would have thought of. He took a leap of faith and made a fast food empire , that’s still up and running today. Do I agree with the way he went about things with the brothers? No. He should’ve still had them included. Being that it’s their name. It made me see Mcdonald’s very different now that i see how everything was created.

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.

The Founder Assignment

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.

The Founder Assignment

  • What makes Ray Kroc and the brothers different from each other?
    Ray Kroc and the McDonald’s brothers were different in several ways. Ray Kroc was a savvy businessman who was always looking for opportunities to expand his business, while the McDonald’s brothers were focused on perfecting their fast-food system. Kroc was a risk-taker who was willing to invest heavily in his business, while the McDonald’s brothers were more cautious and wanted to keep their business small and focused. Additionally, Kroc had a vision for McDonald’s to become a global franchise empire, while the McDonald’s brothers were content with running a successful local business.
  • 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?

    “The Founder” depicts Ray Kroc as a shrewd businessman who is willing to do whatever it takes to get what he wants. He steals the McDonald’s concept from the brothers and then uses his charisma and salesmanship to convince them to sell him the business. Kroc is presented as a complex character who is both charming and ruthless, and the film explores the moral implications of his actions. Some viewers may sympathize with Kroc’s ambition and drive, while others may see him as a villain who took advantage of the McDonald’s brothers.

  • How did the local store franchisees make money?

    Overall, the success of the McDonald’s franchise was dependent on the hard work and dedication of the local store franchisees. They were responsible for implementing the fast-food system and delivering high-quality products to customers. The film highlights the tension that arose between Kroc and the franchisees as Kroc’s desire for profit often clashed with the franchisees’ commitment to quality and customer service.

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

    Another way that Kroc made money was through purchasing the real estate on which the franchises were located and then leasing it back to the franchisees at a higher rate. This allowed Kroc to make money from the land as well as from the franchise fees and royalties. While Kroc’s wealth and power grew, the franchisees often struggled to keep up with the demands of the franchisor and maintain profitability at their local stores.

  • Does this film change your view of McDonald’s?

    The film also raises questions about the impact of corporate power and the tensions that can arise between franchisors and franchisees. It offers a cautionary tale about the dangers of unchecked ambition and the potential consequences of prioritizing profits over people. Ultimately, whether or not the film changes one’s view of McDonald’s may depend on one’s perspective and values.

The Founder Assignment

  1. What makes Ray Kroc and the brothers different from each other?
    • When comparing the McDonald brothers and Ray Kroc, it becomes clear that some of their major differences lie in their moral compass, ambition, and business approach. The McDonald brothers focus on doing the “right” thing – looking out for the employees, providing quality services and goods, and staying true to their words. Ray Kroc is the opposite – valuing profit over quality all while be exploitive. Though they are both ambitious, the McDonald brothers had enough ambition to follow their dreams but not beyond that. When they became overwhelmed or discouraged, they sized back and focused on their one goal whereas Ray Kroc continued pushing limits in the face of adversity. Lastly – they approach running their businesses completely different. The McDonald brothers focus on maintaining quality and are overly cautious of their practices. In contrast, Ray Kroc takes huge risks – going as far as refinancing his house – in order to achieve his goals.
  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 think the McDonald brothers did the right thing but not in the right way. I’m sure they were aware of their demise the moment “handshake” deal was brought up. I’m surprised they did not have their own legal counsel present to advise against that. Selling their name made sense since it was clear that Ray Kroc had the upper hand with his expanding franchises and financials – but they could have asked for more. The amount they did settle for was significant for the time and likely allowed them to retire comfortably.
  3. How did the local store franchisees make money?
    • The local store franchisees made money by being given the blue prints, “secret” works, training, and name recognition of the McDonald brand. They were able to invest a lump sum in the beginning to get started and reaped the benefits of owning a restaurant that was already established and well known.
  4. How did Kroc make money? How was that different than the franchisees, running the local stores?
    • Kroc first made money by selling the franchise rights to the entrepreneurs and receiving a percentage of the profits from that location. However, it became clear that this was not entirely sustainable or as profitable as he thought it would be due to the high overhead costs. Kroc then switched to instead owning the land on which the restaurants were built, allowing him to get a steady stream of rental income and regain control of the real estate assets. When he bought he McDonald brothers out, he became sole owner and thus owned stock and shares in the growing business. The franchisees running the local stores only earned money from the profits of their specific location sales, they did not own the stocks or shares of the overall companies.
  5. Does this film change your view of McDonald’s?
    • This film did change my view of McDonald’s – particularly the final scene where Ray Kroc literally stares at himself in a mirror and blatantly lies about the beginnings of the company. He erases the hard work, effort, and ingenuity of the McDonald brothers and gives no acknowledgement to their major contributions. It made me feel less inclined to support McDonald’s – knowing that there are many other mom and pop shops that offer similar if not better food and service.

The Founder

Ray Kroc and the McDonald’s brothers had different visions for the McDonald’s restaurant chain. The McDonald’s brothers were content with having a few successful restaurants in California, while Kroc had ambitions to turn McDonald’s into a national and eventually global brand. Additionally, Kroc believed in expanding through franchising, while the McDonald’s brothers were initially hesitant to do so.Whether or not the McDonald’s brothers made the right decision by selling to Ray Kroc is subjective and depends on one’s values and priorities. From a financial standpoint, it appears that Kroc gave the brothers a good deal. However, some may argue that Kroc’s aggressive business tactics and eventual sidelining of the McDonald’s brothers went against the original spirit of the company.Local store franchisees made money by paying a franchise fee to the McDonald’s corporation and then earning a percentage of their sales as royalties. They also made money through the profits they earned from their individual restaurants.Kroc made money primarily through owning and expanding the McDonald’s corporation. He earned a percentage of the sales from all franchisees as well as revenue from selling equipment and supplies to them. This was different from the franchisees who earned their money from operating individual restaurants. However, the film “The Founder” may change one’s view of the McDonald’s corporation and its history. It highlights the role that Ray Kroc played in turning McDonald’s into a global brand and the controversial tactics he used to do so.