Founder Assignment

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

Answer: Ray Kroc was more ambitious about expanding the original Mcdonalds company, whereas the brothers were reluctant to expand through franchising, because of concerns about the quality of the items being sold, since they already had tried franchising once, and the quality and the originality of the items, and the menus were altered significantly. The brothers were more concerned about preserving the quality, whereas Kroc wanted to prioritize profiting out of the brand.

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?

Answer: The brothers actually made a very damaging deal with Ray Kroc, since Kroc ended up breaking the terms of the deal by opening up his own real estate company by naming it Mcdonalds, the name he stole from the Mc brothers, and leasing lands to franchisees where only he took a part of the profit of their sales, instead of giving it to the Mc brothers. This put the Mc brothers and their original Mcdonalds out of business, and they ended up selling their Mcdonalds to Kroc. But the contract did eventually serve the public in the sense that Mcdonalds and its unique recipes spread all over the U.S.A and to many parts of the world as franchises.

How did the local store franchisees make money?

Answer: The Local franchises made money from selling their items, and also adding new items to the original Mcdonalds menu. They also added cost saving ways of making some items such as milkshake, where powdered ingredients with vanilla or chocolate flavor were added instead of real milkshake.

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

Answer: Kroc made money from the rental lease contracts he made with franchises, and also, he got a portion of the gross sale the local franchises made.

Does this film change your view of McDonald’s?

Answer: The film definitely changed my knowledge of Mcdonalds and how it expanded from its humble beginnings to the massive fast-food chain that it is today. I learnt of some sad episode in the History of Mcdonalds where the original entrepreneurs of Mcdonalds were put out of business by someone who plagiarized the concept of Mcdonalds. The film also showed me how persistence mixed with a bit of cleverness can help one succeed in achieving any project.

One thought on “Founder Assignment

  1. Rasheeda Noel

    Response to #2

    I absolutely feel similar to you about Ray crossing them on the original deal. At the same time, I felt as if they gave him a short end of the stick instead of allowing him to have some control of his location. A part of me wishes that they did something to defend themselves earlier or at least owned their land.

Comments are closed.