Category Archives: The Founder

These posts will be added to our Student Work menu item. This category should be used for submitting posts for our Segment F Assignment.

The Founder

1.Being a businessperson Ray Kroc saw the potential for the McDonald’s brand to grow quickly through franchising. He wanted McDonald’s to become a worldwide phenomenon. Richard and Maurice McDonald, the brothers who founded the company, they wanted to stay local more like a family buissnes .

2.Base on their situation it was the right move since the brothers were forced to sell due to contractual obligations and business pressures .You can say it was a decent deal because Ray Rock gave them 1.32 millions and royalties.

3.Local store franchisees earned money from the difference between revenue and operating costs.

4.Ray Kroc earned income from franchise fees, royalties, and equipment sales to franchisees. Also by investing in real state buy land and then renting those land to franchisees.

5. Yes it did change my view on McDonalds because Ray Rock showed me that you have to grab the opportunities that are presented to you. Even though some people don’t agree with the choices you are going to make and that if you ever have a business expanding that business is the best move you can make.

The Founder’s Assignment

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

Ray Croc and the brothers are different from each other is terms of the mindset of running a business. Ray Kroc’s vision for McDonalds was to try and expand and saw potential for growth in the business. Some of his plans were to cut the cost of production, try new products, get sponsors and open more stores to expand business and revenue growth. While the McDonald’s brothers were not interested in expanding their initial business. They wanted to just improve the one store they had and didn’t see a reason for expanding.

  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 in selling out a business that a family started is a good thing. In the business aspect of things I do believe the McDonalds brother made the correct decision by selling out its rights to Ray Kroc. Kroc’s vision for McDonald’s was to grow and expand. He was willing to take increased risk to grow and expand. But the way Kroc was running his own McDonalds franchises were negatively impacting the brothers as they didn’t see eye to eye on different aspects on the business side. 

Ray did not give the brothers a great deal. I believe to brother should have gotten a portion of the sales revenue from mcDonalds.

  1. How did the local store franchisees make money?

Local franchisees made money by speeding up production in business making fast food, cutting cost of production and adding new product to their menu.

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

Kroc made money by investing into real estate. He would use this real estate company to buy land and then sell or rent it to franchisees. Who then has to pay him a percent of sells.He used this money to buy out the McDonalds brother. This is different from the franchisee running local business because they no longer have to bear the full cost of buying land and products. It also give him power to control all McDonald’s franchisees.

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

This film changes my view of McDonald’s because it shows that taking the opportunities to growth and expand can be beneficial in the long run. Also, that expanding business into different field can give you some type of self security.

The Founder

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

The dissimilarity middle from two points Ray Kroc and the relatives is the enthusiasm to take risks on new plans. Ray Kroc proverb implausible story freedom that would pay. As a result, Ray waited continuous and accepted McDonald’s to a new level. However, the relatives stopped hard-working to difficult differing plans inside their main inn to increase. They set all their focus and consideration on which they had before. However, when it worsen to gap new sites, they didn’t trust it was likely to maintain their principles and uprightness thoroughly chains, different beam, the one wanted reliable commanders to run the coffee shops.

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

Although the twins were good local businessmen, I trust their choice was more intelligent than right cause they weren’t ready for extending . According to Kroc, the name “McDonald’s” was well unique and exceptional, that is what stimulated him to acquire it. It’s the type of name that create you wonder something that truly exists, so you notice it. It was highest in rank and most clever approach, as Kroc had better trade understanding than the relatives. His occupancy helped McDonald’s in appropriate the immensely profitable trade it is contemporary.

How did the local store franchisees make money?

Franchises were met on trade and yield, while discounting the law and rules of the founders that managed misrepresentation to achievement. Franchise partner received changes that defiled the original rules.

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

Roy was taxing the franchisees a weekly rent for the land and equipment wanted to run a McDonalds locale. The profit created at the joint was preserved for one franchisees. It maybe visualized as a win win model of trade cause the recognition of the chain present habit to more consumers.

Does this film change your view of McDonald’s?

The film anyway changes my view of Mcdonald’s because it is refined to experience that the owner suggested the idea accompanying nothing in welcome help but just an appealing name. He was imaginative enough to give it a try and it worked out absolutely fine. It’s forever inspiring to know that you can found something substantial from something very small if you depend on yourself

The Founder Assignment

  1. The story in “The Founder” tells how Ray Kroc and the Mcdonald brothers wanted to build upon a restaurant where everyone can enjoy a meal, but this idea was where all brothers had a different appoarch than Ray Kroc had. After being given the permission to grow the franchise and wanting to make a nationwide restaurant chain which lead to Kroc to make tons of money by great marketing strategy and supply chain but used cheap industrial products to save money rather than spend, the brother’s were not fond of where the restaurant was going under ray’s involvement as their idea was wanting to keep the originality of their product with wide selection of items rather than changing it.
  2. With the Mcdonald brothers selling out their restaurant franchises is a bit of a mix in my opinion, and the reason why I say this is because Ray’s plan into taking ownership of the franchise was in the form of disagreement and greed which lead to him having to take the business into his own hand and taking half of the brothers percentage profit. As for the brothers who had financial problems in addition trying to build their restaurant brand, it would have not worked for them financially if it wasn’t for Kroc giving the brothers a good deal in making sure the brand survived.
  3. The way local store franchisees made money was by the incoming customers due to the popularity of the Mcdonald brothers restaurant and it goes to show how easy it was for local stores to find customers. As depicted in the movie, Kroc had a marketing campaign which brought in profit for the business and locals.
  4. In the movie, Ray Kroc was just a retail person when noticing the soon to be billion dollar restaurant chain and made his fortune by buying out the Mcdonald brothers shares and from there had complete control of the brand, which lead to Kroc expanding the restaurant nationally thus marketing and profiting hugely.
  5. After seeing this great film and it’s meaning in entrepreneurship, therefore not knowing the story of “The Founder”, this has change my perpective on how I see this successful fast food restaurant and how it has become a global sensation. Overall this story really depicts the ethics of business and the cost to go to great lengths to make a successful brand.

The Founder

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

Ray Kroc is a businessman and the brothers are talented and creative innovators. Ray takes their hamburger kitchen/stand and transforms it into a multi-million-dollar corporation. In my opinion, their differences are what makes a business successful.  Having the creativity and inventions backed by an investor that will make the idea tangible and profitable is important. I think the brothers had a different idea in mind and didn’t really understand how the business world works.  This explains why Ray and Dick constantly bumped heads.

  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 am conflicted on this answer. I think they did the right thing initially, because they had high-hopes of expanding their restaurant that they built from the ground up. They likely saw a prosperous future. Although Dick had many reservations, he ended up signing because Ray told them he would take care of the issues they had in the past when they tried to franchise. I also think they should’ve kept their business a local, “mom and pop” shop that maintained their values. Their business probably wouldn’t have grown much, but they would have had their dignity and pride intact, knowing they stayed true to themselves and their business.

  1. How did the local store franchisees make money?

The local store franchisees made money by the direct profit of the restaurants.

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

Initially, Kroc made money from the 1.4% profit from the franchisee’s location, per the contract. Eventually, after meeting with Harry, he decided to solely focus on buying the land for the McDonald’s locations and then leasing it to the franchisees. By doing so, he not only made profit from the 1.4% but also from leasing the locations.  

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

It absolutely did. The ending was emotional because we watch the brother give up something they worked so hard for and built from the ground up. Part of me wishes they would have divvied up the task of making a business successful- Maurice could have focused on the restaurant quality and operations, while Dick focused on the business and franchising. That way they could have had full control over everything. When I think about McDonald’s quality of food now, I can see why the brothers wanted to keep their standard. I think they would be upset about what it has evolved into. While delicious, I have heard rumors that the food is basically filled with preservatives and not real food.

The Founder

  1. Ray Kroc saw the potential for McDonald’s to become a nationwide and eventually a global franchise, unlike the McDonald brothers, who prioritized the quality, efficiency, and values of their original location. The main difference between Kroc and the McDonald’s brothers is that Kroc was interested in quantity and standardization, while the brothers cared more about originality and quality.
  2. The decision of the McDonald brothers to sell their franchise rights to Ray Kroc is complicated. Emotionally, the brothers felt robbed since Kroc eventually ensured they no longer belonged to the McDonald’s brand. Financially, I don’t feel the brothers had the resources or drive to make McDonald’s what it is now, and I believe that the success of their branch would have faded in the end. This leads me to conclude that the sale was probably more beneficial for them. As evidence, we can agree that if they were businesspeople, they would not have given Kroc room for such a deal. As we look at McDonald’s today, the long-term implications show that the brothers did not fully enjoy the actual value of their work and initial idea.
  3. Even though most of a franchisee’s income comes from the sales in their brunch, working with a big name like McDonald’s is appealing and profitable. Franchisees are drawn to names like McDonald’s because people know and trust the brand right away, which makes it easy to find customers. By collaborating with McDonald’s, they use a business plan that has been tried and tested. They also access a strong supply chain and large-scale marketing campaigns. In the end, collaborating with McDonald’s lowers the risks of starting a business because franchisees can use the brand’s well-known reputation and extensive support system to make it easier to make money.
  4. Kroc made money at first by taking a 1.4% cut of the revenues from every restaurant he was responsible for launching. Later on, he shifted his strategy and began buying the land on which his restaurants were located. Then he started earning money from sales and rent payments.
  5. After watching “The Founder,” I now observe McDonald’s from more than one point of view. I’ve always known McDonald’s for its global reach and consistent service, but the movie showed me the complicated background of how ambition can sometimes come before ethics. Even though Ray Kroc’s drive for success was admirable in some ways, it seemed to come with the cost and overriding of the McDonald brothers, who came up with the idea in the first place. I was reminded that personal stories, ethical dilemmas, and complicated choices are behind every business’s success. Even though I still think McDonald’s growth was smart from a business perspective, I can’t help but think about the ethical issues and the real cost of success.