Posted by
Ray Kroc proposed the idea of franchising McDonald's as a way to sell more of his multimixers 7 years before buying the McDonald's brothers out of the company for $2.7M.
Findings
Additional insights we found via Founders Podcast
After receiving an unusually large order for multimixers, Kroc visited the original McDonald’s in San Bernardino and was amazed by the Speedee Service System (a kitchen assembly line).
The McDonald’s brothers didn’t want to run the franchises by themselves, so Kroc offered to run all the franchising operations for the brothers.
As the franchising agent, Kroc received 1.4% of each franchise's earnings, while the McDonald’s brothers earned 0.5% that was split between the two of them.
In Kroc’s original contract, all changes to any McDonald’s operations had to be approved by the brothers in writing, which created frequent tensions between Kroc and the brothers.
Similar Posts
Showing 1440 posts similar to “Ray Kroc proposed the idea of franchising McDonald's as a way to sell more of his multimixers 7 years before buying the McDonald's brothers out of the company for $2.7M.”
You've reached the end.


