Category Archives: The Founder

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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.

THE FOUNDER

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

Ray Kroc and the McDonald’s brothers differ in their visions for the restaurant business. The brothers, Dick and Mac, had a focus on quality, simplicity, and maintaining the essence of their original concept. On the other hand, Ray Kroc was more ambitious and driven by expansion and profit. He saw the potential to turn McDonald’s into a global franchise, leading to priorities clash.

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 decision of the McDonald’s brothers to sell the franchise rights to Ray Kroc was complex. They were focused on their initial vision of providing quality food and maintaining control, but they faced challenges in expanding. Ray Kroc’s deal allowed them to grow faster, but he later renegotiated terms in his favor, leading to some regrets. Whether it was the right decision depends on how one weighs financial success against maintaining creative control.

How did the local store franchisees make money?

Local store franchisees made money by paying a percentage of their sales to the McDonald’s Corporation. In return, they got to use the brand, and receive support in terms of advertising, training, and access to the proven business model. They were responsible for running the day-to-day operations and ensuring the quality of food and service.

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

Ray Kroc made money by purchasing the land on which the franchise stores were built and then leasing it to the franchisees. He also made money from the franchise fees and royalties paid by the local store owners. His income was more passive, tied to the overall success of the franchise system, whereas the local store franchisees’ income depended on their individual store’s sales performance.

Does this film change your view of McDonald’s?

This film sheds light on the complex history of McDonald’s and how it evolved from a small-scale operation to a global giant. It showcases the sacrifices, challenges, and ethical dilemmas involved in the process. While it doesn’t completely change my view of McDonald’s as a fast-food chain, it does make me think more critically about the business aspects behind it and the individuals who contributed to its growth.

The founder

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

Ray Kroc looked in the video like someone with a big dream and an ambition to develop their profit by opening other franchisees all over the country. Moreover, Kroc was aggressive in his decision, pursuing the business’s success. In contrast to McDonald Brothers, they focus on having good, efficient, and the best quality goods or services in San Bernardino restaurants, and they were not interested in any expansion. On top of that, the brothers were more interested in performing their only system and did not want to take any risk regarding the business.

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?

Yes! I think it was the right thing to sell out to Kroc because The money McDonald’s brothers received from their sale helped them gain money from their creation. According to what I understood in the movie, the deal looked beneficial for McDonald’s brothers in terms of the price. Unfortunately, Kroc changed his strategies to own the business. 

2) How did the local store Franchisees make money? When the business was ready, franchisees paid the fees to Mcdonald’s corporation and these were the percentage of the restaurant’s activities. Further, they made money by also buying supplies and selling them to customers. Finally, They made money through Real State too. 

4)How did Kroc make money? How was that different from the franchisees, running the local stores? Kroc earned money in different ways which made him different from other McDonald’s. From the use of McDonald’s name, Kroc also earned money. Next, Kroc had his percentage of each store’s sales. He also owned the land on which the restaurant was, so he received money from renting that land too. Kroc had multiple ways to make money, which made him the richest and the most important one in McDonald’s. On the other hand, the owners of the store missed the ambition or were scared to extend the source of their income.  

5) Does this film change your view of McDonald’s? Firstly, before I get into the real question this movie showed the company’s dynamic history that made McDonald’s a giant global fast food. Next, it also changed my mind and made me think about being more innovative in the future, and have the aggressive business tactics employed by Ray Kroc to expand a company. finally, it positively changed my view about entrepreneurship, the impact of corporate decision-making, and the complexity of building a business.

The Founder

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

Ray Kroc was simply a salesman and his goal was always to have people buy his products. He would never give up on that goal no matter what he was selling because he always wanted to win. So when Ray saw how much potential McDonald’s had to be great, successful, and become a global franchise, his goal was always to become part of the business and take it because his goal was to always win. The McDonald brothers are different from Ray because even though they always had a new idea for a way to sell their products they gave up easily and got tired of trying. The McDonald brothers tried making McDonald’s a franchise but because they failed they stopped trying until Ray came along and when he came along they still weren’t 100% fully committed to how fast they were growing. Ray had more of a business mindset while the McDonald brothers had more of only business ideas.

  1. 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 don’t believe that the McDonald brothers did the right thing selling out to Ray but I feel like they didn’t have a choice to sell because they couldn’t afford to take it to court I believe a way better deal should have been negotiated because they’ve seen how fast McDonald’s was growing and they could have gotten way more. Also, I believe that they should have never even done that handshake deal instead they should have put it on paper so it could have been official and they should have kept their name and so much more could have been done. Ray did not give the brothers a good deal and he knows that they deserved so much better since it is their name and they started the family company. 

  1. How did the local store franchisees make money?

Local store franchisees make money by getting a profit from the sales made. 

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

Ray Kroc made money from the land of McDonald’s since he started a real estate company to buy their land then he will sell to the franchisees of McDonald’s so they could get started building. He also will make a percentage of the McDonald’s sales.

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

This film does not change my view of McDonald’s, but it helps explain why things are the way they are in the company. One thing it explains clearly to me is the idea of time. A lot of people may not know that time is very important at McDonald’s if they never watched this film, and many may not know that time is still a very important factor to this company today. Not to say that it is always as fast as it used to be, especially since more items are on the menu now unlike then but the company still takes time (the quickness of how fast food could be out) very seriously!

The Founder

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

In terms of background and experience, Ray Kroc initially worked as a milkshake machine salesman. His sales and entrepreneurial experience provided him with a sharp ability to recognize the potential of the McDonald’s brothers. The McDonald’s brothers had previously been involved in the movie theater and restaurant businesses, accumulating relevant experience. When it comes to entrepreneurial drive, Ray Kroc appears more like an entrepreneur. He valued the McDonald’s brand and consistently expanded its brand impact. He possessed strong determination and ambition, along with the courage to transform McDonald’s into a vast franchise empire. In contrast, the McDonald’s brothers displayed innovation in developing the restaurant concept and placed significant emphasis on the quality of McDonald’s food.

  1. 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 that, considering the circumstances at that time, it was a good decision. The McDonald’s brothers selling their business to Ray Kroc could provide them with a substantial income. They received upfront payment from Kroc and ongoing franchise usage fees, which added financial security and stability. While the offer might have been a favorable figure back then, as McDonald’s grew significantly in influence and the profits generated by the franchise network multiplied exponentially, the share that the brothers ultimately gained from the success of the franchise might have been relatively small in comparison. At that point, the initial offer might not have seemed as substantial. It’s important to note that the evaluation of their decision involves the context of the era and the unforeseen magnitude of McDonald’s success.

  1. How did the local store franchisees make money?

For local store franchisees, the revenue generated from their McDonald’s location is their primary source of income.

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

Ray Kroc’s sources of income: 1. Making money by charging new franchisees upfront fees when they join the McDonald’s system. 2. Continuously collecting franchise usage fees based on a percentage of the total sales of franchisees. 3. He created a separate company, the Franchise Realty Corporation, to acquire land and lease it to franchisees. This allowed him to earn rental income from franchisees in addition to other fees. 4. Earning revenue from franchisees by marking up the cost of supplies and raw materials purchased from suppliers he contracted with. This allowed him to benefit from economies of scale achieved through bulk purchasing. In contrast, franchisees’ income is relatively limited, primarily coming from operational revenue.

  1. Does this film change your view of McDonald’s? After watching this film, my perspective on the McDonald’s industry has undergone a significant transformation. Previously, I only focused on the burgers and fries in the store, but now that I’ve gained insight into the entire developmental journey of McDonald’s, I’ve realized that there’s a intricate business network behind it. It encompasses the innovative management wisdom of the McDonald’s brothers and the ambitious business expansion of Ray Kroc. In fact, I believe that both elements are indispensable. Moreover, McDonald’s existed in the business environment of 1950s America, which adds a certain depth of business culture and atmosphere to its brand. At times, I feel that selling sentiment and culture can be more meaningful than merely selling products.

The Founder

1-What makes Ray Kroc and the brothers different from each other: Ray Kroc and the McDonald brothers had differing visions and values. The brothers were more focused on quality, consistency, and the integrity of their original vision. They wanted to ensure that each customer got the best experience. On the other hand, Kroc was more ambitious and saw the big potential for scalability and expansion. He was driven by the big picture, even if it meant compromising on the core principles the brothers held.

2-Did Ray Kroc give the brothers a good deal? In the context of their vision and values, the McDonald brothers might have thought they were preserving their brand’s integrity by selling out to Kroc. However, in hindsight, they might not have gotten the best deal, especially considering the empire McDonald’s would become.

3-local Store Franchisees’ Earnings: The local store franchisees made money from the daily operations of their respective outlets. They earned from the sales of food items while commenting on the quality and processes set by the main company.

4-Kroc’s Earnings: Ray Kroc’s brilliance was realizing that the real money wasn’t just in selling burgers but in owning the real estate on which the franchises were built. He made a significant amount from leasing the lands to franchisees.

5- The movie: of course provides a new perspective on McDonald’s. While I always saw it as just another fast-food chain, understanding its history, the visionaries behind it, and the sacrifices made makes me appreciate the brand more. However, the corporate negotiation and betrayals also shed light on the dark side of the business expansion. It’s a reminder that behind every major brand, there’s a story of ambition, dreams, conflicts, and choices.

The Founder

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

Ray Croc and the brothers are different in how they decide to run the business. The brothers were not interested in expanding McDonalds. Instead, they would have rather stuck with improving the one store that they had. Ray Croc, on the other hand, had a vision of expanding McDonalds and make it into a global franchise. 

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?

If the McDonald brothers did not sell out to Ray Kroc than we wouldn’t have the McDonalds that we know of today. However, I don’t believe that the brothers did the right thing because when one expands their business, there is much more to manage. Then it becomes more of a money grubbing corporation than the heartfelt family business that it once was. Also, Ray did not give the brothers a good deal. They should have gotten a portion of the sales.

3.How did the local store franchisees make money?

Local store franchisees made money by adding new items to their menu and advertising which can attract customers from their curiosity to gain more attraction. 

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

Kroc made money off of the land that all the McDonald’s locations went. He would buy the lot and then sell or rent it to franchisees and then the franchisees would have to pay him a percent of the sales they were making.

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

This film did change my view of McDonalds. To see how McDonalds goes from this small local Resturant that’s family-owned by two brothers to the global franchise that we know it as now, is very interesting.

The founder

  1. 1. Ray Kroc and the brothers are different from each other because Ray Kroc wanted the company to grow and to expand everywhere in the world , while the brothers wanted the company to be small and local , The brothers weren’t as ambitious as Ray kroc , The brothers wanted the food to still have a good quality while being fast food .
  2. 2a) I feel like the brothers made a great choice to sell company to Ray Kroc because McDonald’s is now a successful global company even though there was struggles it has successfully overcame it.
  3. 2b) I feel like it wasn’t fair to the brothers because the original creators of McDonald’s was them and they deserve to get enough credit and share.
  4. 3) The local franchise made more money by adding items from McDonald’s to there menus , since it is a well known brand people would purchase from there .
  5. 4) Ray Kroc earned money from Franchise fees as well as buying lands and being in real estate .
    5) This really did change my view on McDonald’s because who would’ve thought what started off as a small local company, it has expanded around the world and is one of the most successful company.

THE FOUNDER

Question #1
Ray Kroc was a struggling salesman who aspired to be successful. The difference between the McDonalds brothers and Ray Kroc was that Ray Kroc had ambition and wanted to see McDonalds in every state, both domestic and international. That is why he franchised the business, whereas the brothers lacked the drive or motivation to expand, preferring to stay local because they were more focused on running that one store the proper way while serving fresh fast food. 


Question #2
Part (A)
I believe the brothers made the right decision by selling out to Ray Kroc. Though the decision to give up their hard work, passion, love, and business was painful and difficult. I saw no other way because they didn’t have enough money to win the case against Ray, and Ray Kroc is responsible for what McDonald’s is today. He saw something bigger within the “McDonald” brand which is the name itself. He turned the small local burger joint into a recognizable and successful global franchises.

Part (B) The brothers get what they want, which is 2.7 million dollars and 1% of the company. Did Ray Kroc give the brothers a good deal? No, I believe they could have gotten more because it was their original idea for the “McDonald” business and they was cheated of.

Question #3
Local store franchisees profit from sales generated in the store by adding menu items as well as the name “McDonald” because customers are familiar with and trust the brand and employing the brothers’ strategy and technique.

Question #4
Ray Kroc made his money primarily through his association with McDonald’s and the rapid expansion of the franchise. After Harry persuaded him to not only lease but also buy the land and then lease it to local franchisees. He also generated money by from Real Estate Ventures, Innovative Marketing & Business Practices and Acquisitions & Diversification.

Question #5
This film was VERY emotional. My views after viewing this film give me mixed feelings. The film explores themes of ambition, entrepreneurship, and the complexities of business partnership.