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VolsOut4Harambe
Carolina Panthers Fan
Atlanta, GA
Member since Sep 2017
2679 posts

Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
The other night I was watching The Founder, which is a biographical drama about Ray Kroc who founded McDonald's Corporation.

Kroc started his venture by persuading Maurice and Dick McDonald, who started the very first McDonald's in San Bernardino, to let him franchise the operation because it was the most efficient food service operation he'd ever seen. As the business model grew, Kroc saw ways to cut costs and increase profits, but couldn't execute due to his contract with the McD brothers and their disagreements with the ideas. The brothers were too focused on their local operation while Kroc wanted to expand as fast as possible.

Long story short, Kroc ended up buying out the McD brothers' trademark for a mere 2.7 mil. The brothers came to a "handshake agreement" with Kroc for 1% of all of the company's royalties, which ultimately amounted to over $100 mil/year, but never received them. The brothers then had to rebrand their restaurant and ultimately went out of business 6 years later, while Kroc's McDonald's Corporation grew to what it is today.

In your opinion, did they get screwed by Kroc, or were they stupid and deserving of their fate?

Yes I know McD's is trashy.


Priapism99
LSU Fan
Rhode Island
Member since Nov 2014
449 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
TL;DR
MacDonnols is for poors


Slingin Pickle
LSU Fan
Fancy side of the North Shore
Member since Jun 2008
1673 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
Both


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480
The Pirate King
Texas Tech Fan
Pangu
Member since May 2014
30406 posts
 Online 

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
The movie portrayed them as simpletons and Kroc as a used car salesman predator


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790
fightin tigers
Downtown Prairieville
Member since Mar 2008
46121 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
Both.

Without a doubt, both.


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241
willymeaux
LSU Fan
Baton Rouge
Member since Mar 2012
3997 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
I bet the ice cream machine worked under the brothers


TheCaterpillar
LSU Fan
Member since Jan 2004
70814 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
quote:

In your opinion, did they get screwed by Kroc, or were they stupid and deserving of their fate?



Both.


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101
Mingo Was His NameO
LSU Fan
DFW/NELA
Member since Mar 2016
12433 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
quote:

In your opinion, did they get screwed by Kroc, or were they stupid and deserving of their fate?


Probably both. Kroc was probably a scumbag, but any idiot that makes "handshake deals" deserves to get screwed for being a retard.


TheAlmightySmash
LSU Fan
New Orleans
Member since Jun 2014
4689 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
their french fries are tGoat. that's all I have to add.


Ba Ba Boooey
LSU Fan
Northshore
Member since May 2010
3766 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
When they agreed to a handshake agreement they deserved what they got


nugget
LSU Fan
Member since Dec 2009
8152 posts
 Online 

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
Both. But his real genius was buying up the real estate under the leases. He gave a speech at Harvard one day and asked everyone if they knew what business he was in. All said well obviously the hamburger business!! And he said, "Wrong! I'm in the real estate business"


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433
Y.A. Tittle
Winthrop Fan
Member since Sep 2003
74211 posts
 Online 

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
I'd need more information on this "handshake" royalties deal to reach a conclusion.

I'd say, however, 2.7 million for a freaking hamburger stand in the 1950s was a hell of a lot of money.


scott8811
LSU Fan
Ratchet City, LA
Member since Oct 2014
4717 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
they got screwed by someone who outsmarted them


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160
Pedro
Wisc-Milwaukee Fan
the one and only
Member since Jul 2008
23105 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
That was my final impression as well.


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30
LSURussian
LSU Fan
Member since Feb 2005
115855 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
$2.7 million in 1961 (when Kroc bought the brothers out) would be equivalent to almost $23 million today. The brothers did okay, imo.


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393
TejasHorn
Texas Fan
High Plains Driftin'
Member since Mar 2007
7046 posts
 Online 

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
The movie spelled it out pretty well, with some embellishing.

The McD's should've had better representation. Even so, they would've never turned it into the empire Kroc did. Kroc had the vision and wasn't risk averse.
This post was edited on 7/16 at 4:08 pm


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350
Decisions
LSU Fan
Member since Mar 2015
952 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
The brothers lacked vision. I don’t really blame Kroc in the grand scheme of things. He could have made ALL of them wealthy if they had just cooperated.

They didn’t. So he did what he had to.


GetCocky11
South Carolina Fan
Arlen, TX
Member since Oct 2012
34783 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
quote:

He could have made ALL of them wealthy if they had just cooperated.


Those damn powdered milkshakes (gross).


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61
AbitaFan08
LSU Fan
Boston, MA
Member since Apr 2008
18057 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
Both, but mostly they were just stupid
This post was edited on 7/16 at 4:11 pm


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04
TigerMyth36
River Ridge
Member since Nov 2005
38230 posts

re: Did the McDonald brothers (original McD's) get royally screwed, or were they just stupid?
If the movie is accurate, they didn't want to expand so the 2.7 million is probably more than they would have made with a couple of cheap burger stores.

Kroc definitely exploited their concept and he cheated them out of the royalties but they were not good businessmen relying on a handshake. Kroc was able to see a great idea and he accepted the right advice. McDonald's would never have become the behemoth it became without Kroc's ambition.

They were naive / dumb and they lacked the drive to create a massive national chain. So he screwed them and they were dumb.
This post was edited on 7/16 at 4:13 pm


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