1) The McDonald brothers were more concerned about the quality of their product and the customer experience. Ray was more concerned about making money by growing the business exponentially. So, there were differences between them and their occasional phone conversations were terse
2) The McDonald brothers and Kroc had both become wealthy, but Kroc would become filthy rich when he bought them out in 1961 for $2.7 million. The brothers figured that after taxes they’d each have a million bucks. They just went out of business, but if they kept business they could get rich for sure out of McDonald’s. If they sold this business, then Ray Kroc gave them a good deal.
3) McDonald’s, more than 90% of its 38,000 restaurants are franchised. That means the vast majority of its restaurants are not company owned and operated. Rather, franchisees take up the burden and risk of setting up a restaurant and selling burgers (and fries) to customers.
Meanwhile McDonald’s can sit back and collects money from its franchisees. Franchisees pay McDonald’s in several ways:
A one-time upfront payment of around $45,000 to $50,000 to start the franchise. Also franchisees are expected to foot much of the bill to start up the restaurant — the initial investment can be upwards of $1 or $2 million.
A monthly royalty fee of 3–4% of gross sales.
Rent as McDonald’s often owns the land and buildings that the franchisees use for their restaurants.
4) They were looking for a new franchising agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name and operating system.
5) Yes this film changed my mind of McDonalds. This is very cool and interesting story. I’ve learned how big company such as McDonalds works.