- The brothers were family-oriented business. They didn`t want to expand, they wanted to focus on the quality of the food first. Ray was a predator, he didn`t care about the business, he just wanted to make money, grow it rapidly and get instantly rich.
- It`s a personal choice to sell. From my perspective, it is okay if you play your cards right. If they had nailed the royalty percentage written in the contract, it would have been an amazing deal. Imagine doing whatever you desire in your life and money just knocks on your door. It would`ve made them extremely wealthy without any efforts.I don`t think Ray, gave them the best possible deal. They have never received the royalty in perpetuity, and they never even gotten the credit for creating the restaurant.
- They were making money because of the speed system, the brothers developed. The cost cutting solutions they have found, such as getting rid of silverware, dishes, jukebox. By changing the system to walk-in restaurant, they were also able to cut expenses with salaries.
- Harry Sonneborn, who told Ray that it`s not about the hamburgers, it`s about real estate, changed his life. Kroc was making money out of the real estate model. He was purchasing and leasing the land to new franchisees. Ray was a tough and ruthless guy; he saw an opportunity and he grabbed it.
- Yes, it did, even the first time I’ve watched it, busines wise. Now it just confirmed my opinion. I was so surprised by all the dirty tricks and malicious games, Kroc used in order to succeed. But let`s not forget, this is not a documentary… I am pretty sure some scenes were overexaggerated. However, one lesson learned – never close a deal on a handshake and trusting unconditionally.
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I definitely agree with you Ray didn’t care what he was giving to the people as long as he made a profit, and that’s exactly what I was saying they should have negotiated the contract better and have been more stern about what they wanted. Good post!
I agree with Ray didn’t care about the business he just knew he would make so much profit if he was in the business. Ray took advantage of how nice the brothers were, I think that’s why he didn’t put the 1 percent in the contact because he knew they would accept the handshake but to later screw them over. I wonder what would have happened if Ray never met Harry.
That is true, Ray was definitely a tough a ruthless guy. But that’s what made him a very desired to be individual. He was driven and persistent. He’d stop at nothing to reach his end goal which is what I desire to do as well. However, like most people, greed can manipulate one’s own thoughts and Ray was overcome by greediness and narcissism which led him to deny all the complaints and orders from Dick Mcdonald. Although to bring in some positivity, without Ray’s help, they would never be millionaire’s nor could they reach a point where they would franchise the business alone.
Yes, it would’ve been great if the McDonald’s brothers and the generations after them were currently receiving the said percentage that was quoted to them. It may seem like a small percentage but considering the worth of the McDonald’s cooperation their families would’ve always remained extremely wealthy. Kroc indeed played malicious games with the brothers. Kroc did ask for small increase because he wasn’t making enough money which i thought was fair of him to ask but once the brothers denied his request he allowed greed to take over him. Kroc became more determined then ever once he saw he was almost about to lose his home.
I think what Ray did while going over the contract with the brothers was wrong, but the brothers should not have trusted anybody that quickly and should have also got a lawyer to look over the contract instead of settling it over a handshake. Ray helped McDonald’s’ as a company make a lot of money, but without the food recipes the brothers worked hard for in the first place, it wouldn’t have worked out. The brothers did get compensation for Ray buying them out, but it should have considered what the company is worth today.