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

Ray Kroc is a serial entrepreneur who is after maximizing profits and growth of his businesses while the brothers are social entrepreneurs whose main focus is creating something that fits their values and adds to the community. Furthermore, they prioritize their own lifestyle at times as can be seen with their choice to slow down growth due to their battle with diabetes. Ray Kroc is willing to comprise the values of the company and the product for profits and growth like we saw in the milkshake changes in the movie.

• 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 brothers made the right decision in the sense that they did not want to be involved in the expansion and Ray had expanded the company far past the sights of the original store. However, some of the rights like the Mcdonald’s name should not have been sold in that manner. I think selling such a revolutionary restaurant without keeping a cut was a bad deal, especially when the one percent of the company they received was a handshake deal from somebody who has proven to be untrustworthy. Furthermore, the value of the golden arches and various other Mcdonald’s branding is worth more than the stores themselves.

• How did the local store franchisees make money?

The local franchisees paid a franchise fee originally, then everything else was purchased by the franchisee including the storefront. The franchises had to comply with the standards of McDonald’s but otherwise pay for the costs and kept the profits minus the fees. Later this would change when Ray Kroc decided to buy the property and have the franchisees lease the land from him.

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

What made Kroc’s money was first the 1.9% of gross sales from the franchising fee and gave back the brothers .5% of that. However, this was only breaking even for Kroc, so Kroc after receiving advice from a finical investor choose to implement a new idea that differentiated his Franchising model from others. The model had Kroc first buy plots of land for stores and the franchisees would pay Kroc to lease the land. Giving Kroc greater control and Negotaiiting power over his franchisees.

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

Yes, I did not credit McDonald’s in the past for all its innovation in the restaurant and business space. From the revolution of the concept of fast food to the equipment and structure of the processes themselves all the way to Ray Kroc’s franchising model. I view Mcdonald’s as revolutionizing and being business savvy, however, my view of McDonald’s lack of quality is still persists. I do them credit for the consistency of their menu items from store to store despite wait time not being so.