Category Archives: The Founder

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The Founder

  1. What makes Ray Kroc and the brothers different from each other?

When it comes down to Ray Kroc and his brothers, the difference are clear as day. It seems as though the brothers were more invested in making sure they could push the best possible brand/product out while Ray Kroc wanted to maximize the business and it’s potential. Ray wanted the product to be as big as possible while making a good amount of money too. Throughout the movie you could just tell there was a big disconnect in regards to their beliefs.

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?

The McDonald’s brothers most definitely did the right thing selling to Ray Kroc and they honestly did not really have a choice. In terms of their financials if they would’ve not sold out to Ray Kroc they would have been in a terrible spot and that would have meant bankruptcy being a possible option. Kroc had the mindset of doing whatever it took to make sure McDonald’s could thrive and that led to him being in a great position. In regards to the deal it was solid and in the end helped the brothers in the long run. They really had no other choice so wise would be a understatement for their decision.

3. How did the local store franchises make money?

The local franchises made their money through various ideas in which they had to ensure the franchises could continue to make their money. I believe the biggest factors were that the local stores were independent and this allowed them to be able to broadcast how they wanted their businesses to be.

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

Kroc made his money through the investors who would come to see how things were unfolding. Many people would say that Kroc was not right in terms of buying his brother’s business but in the end it made things move a lot quicker for Kroc. Kroc’s unorthodox ways in which ultimately led him to make more money and become a titan in the business world.

5. Does this film change your view of McDonald’s?

This film did not really change my view on McDonald’s due to the nature of the franchise and how they go about promoting unhealthy eating. But being a business major it definitely intrigued me to see how Kroc managed to do everything he did. It showed me a level of entrepreneurship in which I hadn’t seen before. All in all Kroc managed to work through to make the McDonald’s the titan it is today and honestly that is something in which I can respect.

The Founder

  1. What makes Ray Kroc and the brothers different from each other?
    Both Ray Kroc and the McDonald’s brothers seem to have entrepreneurship spirits there are some minor differences between the two. Regarding Ray Kroc, he had tried multiple products that will bring about his success, as evident in the conversations he had with his wife, but what he lacked is an idea that will revolutionize an already existent industry. Whereas the brothers remodeled the restaurant business and made it more efficient and productive. For instance, the McDonald brothers got rid of the unnecessary packaging and waste of time that occurs in traditional restaurants and made it so that the labor used in the process of making the food was used solely for the purpose of, well, making the food. That said, one thing the brothers lacked, and Ray Kroc had, is ambition. Though they have tried to expand and franchise the idea, Ray Kroc saw the potential of making McDonald’s a restaurant from coast to coast with high supervision, he took a great risk, met new people, and became persistent until the franchise became successful.
  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?
    The McDonald’s brothers did the right thing because, had they been stubborn to Kroc, they would’ve drowned in legal expenses and other costs associated with legal battles.
    Yes, some people believe that Ray Kroc wasn’t fair towards the brothers because he technically stole their innovative idea of the “speedy system,’ however, had it not been for Ray Kroc pushing forwards and “being persistent” maybe McDonald’s wouldn’t exist today. Unlike the brothers, Kroc put his own house as collateral for the loan he had taken from the bank to expand the speedy system idea, he had traveled to multiple cities, made business associates, and found talented people to run each individual store, which the McDonald’s brothers failed to initially achieve.
    Though two million after taxes is low relative to today’s MacDonald’s generated revenue, at the time, the brothers got a good deal and if they have refused and gone into a legal battle, maybe the business would’ve failed and each of the three end up with nothing. However, one thing Ray Kroc did not fulfill is the one percent royalty the brothers would’ve got which he should’ve been sued for by the brothers.
  3. How did the local store franchisees make money?
    The local franchisees would make money after operating the whole business independently but following a strict standard that the two brothers and Ray had in the contract. After the businesses made revenue, Ray Kroc would receive 1.4 percent of the generated revenue, while the brothers would receive 0.5 percent.
  4. How did Kroc make money? How was that different than the franchisees, running the local stores?
    After being late on his payments of the loan he had taken, Ray Kroc encountered a lawyer who would offer him a business idea and leverage his position in order to generate greater profits. Hence, Ray Kroc will own the land the McDonald’s restaurants will open in, and then go on a lease to those who will put an establishment on such land. This, in turn, allowed Ray Kroc to open a separate reality entity but frustrated the two brothers because they had believed it had preached the contract, however, Ray Kroc reminded the two brothers that what he was doing is outside the business rather than the operation of the business and product-making. This allowed Ray to generate a higher revenue than the initial 1.4 percent he was earning from running the local stores.
  5. Does this film change your view of McDonald’s?
    As someone who is concerned about the health of people, I’ve always held negative views towards McDonald’s as they offer unhealthy meals and run deceptive ads to lure kids into their restaurants. Still, such kids will end up unhealthy as adults. However, this movie changed said views a bit in the sense it highlighted American entrepreneurship and the spirit of innovation. This appreciation goes towards of course the McDonald’s brothers who innovative the process making of their food and utilized the labor to make such food. It is a bit similar feeling to that of Henry Ford and his innovation of the assembly line to make cars fasters and more affordable.
    Furthermore, even if some people dislike Ray Kroc, his vision to expand upon the brother’s idea is phenomenal. One would have to assume that had it not been for Ray Kroc, McDonald’s would be nonexistent today and the brothers would’ve not received their 2.7-million-dollar settlement with Raymond. What Kroc had that the brothers lacked is the vision and risk-taking to mortgage his house and meet new people that will have been able to run the businesses sufficiently.