The Founder

1. What makes Ray Kroc and the brothers different from each other?
   Ray Kroc is someone who is more concerned with profit and expansion, whereas the brothers are more concerned with the integrity and consistency of their product.  Both Ray Kroc and the brothers value efficiency, however, they value efficiency in contrasting ways.  Ray Kroc views efficiency in a more money-centered way; his aim is to lower expenses in any way possible while still having a product that is passable.  This is seen when he pushes to replace their milkshakes with vanilla and chocolate powder packets in order to cut down on electricity costs.  For the McDonald’s brothers, they view efficiency in a more well-rounded way and would never compromise their original intent, values, or desires. It is not within their character to compromise the quality of their food for the sake of cutting costs. The McDonald’s brothers are shocked and almost disgusted by the idea of replacing a milkshake with powder packets for the sake of saving on electricity costs.  Their integrity is central to them and is ultimately their downfall as well as Ray Kroc preys on their good nature.
   I think their differences can be best summed up in this exchange between Ray Kroc and Dick McDonald, where Ray Kroc says, “Business is war. It’s dog eat dog, rat eat rat. If my competitor were drowning, I’d walk over and I’d put a hose right in his mouth. Can you say the same?” In response, Dick McDonald says, “I can’t, nor would I want to.”
   
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 don’t necessarily think they did the “right thing,” by selling out to Ray Kroc, but I believe they also felt as if they had no other choice because of how Ray Kroc pulled the rug out from under them.  While they were able to keep San Bernadino, (as it was a non-negotiable, since they wanted to give it to their employees out of their loyalty and as a show of goodwill), their desire for 1% proprietary was the most beneficial part of their deal with Ray Kroc, and they did not even get that written in actual ink or signed.  As previously mentioned, Ray Kroc preyed on their good nature; by saying the perpetuity would have to be on a “handshake basis,” he was guaranteeing that they would never see any of that money, and to this day, as stated at the end of the film, they never saw the money they would have earned from 1% proprietary.
   
3. How did the local store franchisees make money?
   The local store franchisees only make money through the actual services and sales after the overhead costs (supplies, utilities, etc.) were deducted from their total earnings/revenue.  The fact they were responsible for these costs was part of the reason why earlier on in the film, Rollie Smith expressed concern to Ray Kroc about the cost of their electricity bill as the milkshakes were a bigger expenditure than they were anticipating. 
   
4. How did Kroc make money? How was that different than the franchisees, running the local stores?
   Kroc made money by entering into the real estate business with the help of Harry Sonneborn.  By leasing the land/building that the franchise would run its business on, and then being paid 4% of each franchisee’s monthly sales, and a monthly rental fee for the land, Kroc was able to see profits from the franchisees.  It also gave a different kind of incentive for quality control, since it put a kind of hierarchy of sorts in place.  For franchisees running the local stores, the way they earn money is very different due to the fact that their earnings are based upon the actual customer-facing transactions through sales of their food/product.  There is a different level of day-to-day responsibility and management that must be done in order for them to receive their profits.
   
5. Does this film change your view of McDonald’s?
   It does and it doesn’t.  In order for any company to make that amount of revenue in a year, there has to be some employees within their operations that are not getting properly compensated for the work they are doing for the company, and how that work in turn helps produce profit for the company.  I say that to say that, I’m not surprised that a billion-dollar company has sheisty beginnings.  I am surprised though that it was not the brothers who took the bigger lead on expanding the business, and I think it’s really morally foul that McDonald’s as a corporation—to my knowledge—has not done anything to try to make amends to the family of the McDonald brothers, however, I understand that with how businesses tend to run in terms of legality, and without the ability to prove the “handshake” agreement, they are not likely to compensate retroactively or moving forward in any capacity.