Based on the films, The points that make Ray Kroc and the brothers different from each other was having different way of thinking how the business should work within the opposite point of views. Ray Kroc was an proactive and ambitious salesman with really huge growth as part of the business works. While, the brothers were thinking about keeping the quality and consistency on each product that they sell. So, they felt that their business was content and enough for them as long as they can maintain the services and productions. It was showing persistent condition of them and the difference compared with how Ray Kroc thinks.

Regarding whether selling out the business to Ray Kroc, It could be seen from many perspectives since I believe from how the brothers’ perspectives were felt betrayed that the business grew into the one that they did not envision and expect in the beginning. However, on the other side, the deal allowed the brothers to leave out the business while getting financial compensation as a part of business “partner” I could say. So, whether saying if selling the business to Ray Kroc was a good deal or not. It kinds of depend on how we see the deals. But to be honest, I would say It was a win-win deal for them since the business grew into really huge multinational scale with high peak upscale within certain period of times.

And also about local franchisees make money, It was mostly through sales, and commissions. While Ray Kroc, received money through many ways such franchise expansion, franchise right and license, and also company stocks.

I feel like McDonald’s was just one of the example of how the business model works. There are many kind of business works including the various aspects including in it and McDonald’s was one of it that grew really well until present condition where there are around 40 thousand of total stores worldwide. It grew the economical purpose and also helps the countries with hundreds thousands of employments and also meeting the demand of food production business on almost all countries over the world.

The film “The Founder,” which chronicles the history of McDonald’s and the relationship between Kroc and the McDonald brothers, may change one’s perspective on the fast-food giant. It highlights the business dynamics and ethical considerations involved in the growth of the franchise. The portrayal of Kroc as a shrewd businessman willing to take advantage of opportunities and the McDonald brothers as innovators who faced challenges underlines the complexities within the business world. It prompts viewers to consider the impact of ambition, trust, and business ethics in the success and expansion of iconic brands like McDonald’s.

Ray Kroc and the McDonald’s brothers, Richard and Maurice McDonald, differed in their vision and approach to the fast-food industry. The brothers initially developed the innovative and efficient “Speedee Service System” at their original San Bernardino, California, restaurant, emphasizing quick service, a limited menu, and a streamlined kitchen. They aimed to maintain quality and efficiency in a few select locations. On the other hand, Ray Kroc, a struggling milkshake machine sales agent, saw the potential for nationwide expansion. He envisioned McDonald’s as a franchise opportunity and focused on scaling the business, emphasizing uniformity and brand consistency across multiple locations.

The McDonald’s brothers faced a choice when Ray Kroc expressed interest in franchising their concept. Selling to Kroc allowed them to cash out, but it also meant relinquishing control over their brand and vision. Kroc, driven by ambition and a desire for expansion, convinced the brothers to sell the company to him. The deal was initially fair, with a promise of a percentage of future profits for the brothers, but Kroc later reneged on that agreement, leading to tension and legal battles.

The local store franchisees made money by running individual McDonald’s outlets. They paid a franchise fee and a percentage of their sales to the McDonald’s Corporation. In contrast, Ray Kroc made money through real estate. Instead of relying solely on franchise fees, Kroc established a separate entity to purchase the land on which the McDonald’s restaurants were built. Franchisees then leased the land from Kroc, providing him with a steady stream of income independent of the store’s sales.

References:https://en.wikipedia.org/wiki/The_Founder ,https://www.rottentomatoes.com/m/the_founder ,https://www.reddit.com/r/movies/comments/14uoz6n/what_is_your_opinion_on_the_founder/ .

What makes Ray Kroc and the brothers different from each other?
The brothers where more concerned about the quality of the product and Ray Kroc was more worried about profit.

Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc?
The deal with Ray Kroc provided the McDonald’s brothers with a substantial upfront payment, ongoing royalty payments, and a share of the profits from franchised locations. This financial gain allowed them to focus on their original restaurant and provided them with a steady income.

How did the local store franchisees make money?
Local store franchisees make money through a combination of revenue generated from their McDonald’s restaurant’s sales and the management of their operating costs.

How did Kroc make money? How was that different than the franchisees, running the local stores?while both Ray Kroc and the local store franchisees generated income from the McDonald’s franchise system, Kroc’s revenue came from a combination of franchise fees, royalties, real estate investments, and global expansion efforts. Franchisees’ income was mainly derived from sales revenue, royalty payments, and their ability to manage operating costs effectively.

Does this film change your view of McDonald’s?
No my views are still same. The food is very unhealthy but is a great late night snack when nothing else is open.

The Founder was an amazing film. The movie tells the true story of a persistent salesman in a relentless pursuit to manifest his future vision of McDonald’s. Ray Kroc, a traveling salesman received an abnormally large order for some milkshake mixers, and he decided to deliver them in person to San Bernardino California. Once Ray arrived, he met 2 brothers who owned a restaurant named McDonald’s. Ray was fascinated by the taste of a McDonald’s hamburger, and the efficient processes that the brothers had in place to run their business operations. Ray was different from the brothers because he wanted to expand the McDonald’s business in terms of franchising. Ray pitched various innovative ideas to drive revenue however, the brothers were content and satisfied with how their business was already functioning. Ray eventually persuaded the 2 brothers to allow him to franchise the company, and Ray opened stores nationwide.

I think it was a good idea for the brothers to allow Ray Kroc to franchise, because the McDonald’s business needed to be exposed to the world. The quality of the product and the business efficiency was superb, basically groundbreaking at the time. I don’t think that Ray Kroc gave the brothers a fair deal regarding their ending contract. The brothers should’ve kept the rights to their name 100%, and never let any entity conduct business using the McDonald’s name, logo, and trademark without their final approval. This was the beginning of the brothers losing control of their company. The start of Ray Kroc taking over the McDonald’s business.

The local franchised stores initially bought their own land, then built their own McDonald’s stores. They generated their income from store sales. Ray Kroc eventually realized that he wasn’t profiting, and only earned a small percentage from the overall McDonald’s business. Ray decided to eventually buy vacant plots of land, then begun to lease said land to the franchisees. By doing this, Ray now gained equity from each McDonald’s location, and understood he was in the real estate business.  Ray Kroc became a real estate developer and multi-millionaire by building and leasing McDonald’s restaurants worldwide.

The Founder hasn’t changed my personal perspective of McDonald’s in any way. The movie helped me understand more about the importance of brand ownership. McDonald’s has and always will be the most recognized restaurant franchise in the world!

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