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Unlike other franchises, the McDonald's Corporation owns the land and the buildings of individual stores, and franchise owners lease those assets—resulting in McDonald's often being called a real-estate company.
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Additional insights we found via PolyMatter
Harry Sonneborn created Franchise Realty Corp., a McDonald’s subsidiary, to purchase the land beneath McDonald’s franchises in 1956.
Sonneborn proposed the solution after discovering that the revenue from food sales alone wasn’t enough to make McDonald’s profitable.
Sonneborn sold his stake in McDonald’s after a power struggle with Kroc, but his early exit from the company left nearly $1B in unrealized returns.
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