How a Salesman Scammed the McDonald's brothers Out Of Business and took over their Legacy

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  • Опубліковано 16 лис 2024

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  • @estradaj777
    @estradaj777 8 місяців тому +18

    They should have given them more credit as founders , but Ray propelled the business to a World Wide name.

  • @MarvelousLXVII
    @MarvelousLXVII 8 місяців тому +20

    He didn't scam them. Matter of fact, one of the brothers took the money they got paid and reinvested back into McDonalds and made even a bigger fortune. Both of them said they had no regrets with the deal.

    • @joemckim1183
      @joemckim1183 Місяць тому +2

      Exactly. Without Ray Kroc they would've still earned a decent living running their single location but they wouldn't have been able to have as much money to walk away with at the end of the day.

  • @TirarADeguello
    @TirarADeguello Рік тому +24

    Ray Kroc died in January 14, 1984 I don't know how he did that 1993 interview?

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому +2

      100%

    • @movingpictures316
      @movingpictures316 7 місяців тому +6

      Easy. They just unembalmed him. Then they pumped his heart with oxygen and wallah! He was alive again from the dead to do the interview.

    • @akbarrahaman1
      @akbarrahaman1 Місяць тому +1

      Ray died in 1984 so how did he do a 1993 interview lol

  • @Mma_tips
    @Mma_tips 2 роки тому +42

    The movie was interesting to watch and follow along, we got to see the challenges faced by Ray Kroc himself.
    Never know how the McDonald's would have turned out if they were only focused with friendly business practices of the brothers.
    Really goes to show that how personality of one person affects the entire operations of the business. A business so huge that it even became a geopolitical philosophy.
    Truly Remarkable.

    • @joeblow2069
      @joeblow2069 11 місяців тому +2

      Yeah we do. Without Ray Kroc the brothers would have had their one restaurant in San Bernadino. Instead they got $2.7M.

    • @metsrus
      @metsrus 10 місяців тому +3

      the film exaggerated and added more drama. the McDonalds brothers were grateful Kroc made them millionaires. They had no interest or ambition for expanding. They sold Kroc the Mcdonald's name for millions and became even more wealthy when they used that money to buy McDonalds stocks.

    • @joeblow2069
      @joeblow2069 10 місяців тому +6

      @@metsrus You are partially wrong.
      They obviously wanted to expand that is why they hired him to be their franchise agent. The problem is that the business expanded so fast they had no way to control things. They probably expected a few new restaurants a year not 50 new ones.
      Their approach was wrong. With a booming business they should have operated like business executives managing a growing business but they continued to spend almost all their time running that one store in San Bernadino.
      It also never occurred to them to have a hand in owning and controlling the land the stores were on. They were not visionaries.

    • @metsrus
      @metsrus 10 місяців тому +2

      @@joeblow2069 Let's just say they wanted to expand but were not driven like Ray. That's why they were happy and grateful for the buyout deal, despite what the movie portrayed.

    • @davedavidson4548
      @davedavidson4548 10 місяців тому

      HELP ME I AM INDIAN SIR

  • @redmustangredmustang
    @redmustangredmustang 11 місяців тому +9

    That's just a smart business move. The real money is in land. You BUY the land and then "lease" it to the franchise owner and McDonald's. McDonald's STILL does that practice and make money hand over fist. The McDonald's brother wanted to retire when they got a million dollars or today's money 10.056 million dollars in 1963 money. Ray was able to do that getting through the leasing deals.

  • @milwaukeemotor5995
    @milwaukeemotor5995 Рік тому +20

    it looks like the mcdonald brothers were kind honest businessmen thinking not only about being rich but about their employees and the quality of the food success doesn't always mean numbers or $$$

    • @floriancuhap5318
      @floriancuhap5318 Рік тому +6

      And quality of food too. Which is why mc Donald's struggles big time 😂

    • @joeblow2069
      @joeblow2069 11 місяців тому +6

      If they did not care about being rich why did they take $2.7M from Ray Kroc? That is equal to almost $30M today.

    • @kev3d
      @kev3d 11 місяців тому +6

      Selling your business for millions is a weird way to say "we don't care about money".

    • @joeblow2069
      @joeblow2069 11 місяців тому +3

      @@kev3d Sure is.

    • @IMDGEN
      @IMDGEN 10 місяців тому +1

      @@kev3dnot when it's only enough money for 2 families to live comfortably and not have to work for the rest of their lives. When you think about it that way it's not "not caring about money", it's a smart life decision. Cant be super wealthy because there's no money still coming in

  • @FAITHandLOGIC
    @FAITHandLOGIC Рік тому +45

    How did he scam them? Sounds like he made them an offer and they accepted.

    • @danbrillman5129
      @danbrillman5129 Рік тому +16

      They offered to sell him the franchise for $2.7 mil and he agreed, and then bought it and set up a competiting store close to the original.

    • @joeblow2069
      @joeblow2069 Рік тому +2

      @@danbrillman5129 So? When he first met them they had one store. There were a couple of satellite stores from when they tried to franchise but those stores brought them little in royalties.

    • @kev3d
      @kev3d 11 місяців тому

      @@danbrillman5129 Not the franchise, ALL of McDonald's. Kroc bought it for a price that satisfied the McDonald brothers.

    • @joeblow2069
      @joeblow2069 11 місяців тому +2

      @@danbrillman5129 They sold their interest in the entire company. There were 200 stores!

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому +7

      They told ray Kroc exactly what they wanted and he paid them the amount. The blank check in the film was for drama.

  • @monkey39128
    @monkey39128 9 місяців тому +34

    He didn't scam them. They had a well run restaurant but Kroc had the vision to build the empire.

    • @bherber
      @bherber 2 місяці тому

      Nobody said he scammed them. He did have the drive and vision, so you are copying off of me on that thought, but he didn't just merely let them keep that original location. Monkey may need to go back to the zoo and take more classes...

    • @monkey39128
      @monkey39128 2 місяці тому +3

      @@bherber The title has the word "scammed" in it so yes someone did say he scammed them. How am I copying off of you? I have no idea who you are. What exactly did I say that was incorrect? Perhaps try learning some manners.

    • @RodDMartinJD
      @RodDMartinJD 17 днів тому

      @@bherber The word "scammed" is literally in the title of the video.

    • @bherber
      @bherber 17 днів тому

      @@RodDMartinJD - Thank you for pointing that out. People that take an intelligent approach to this, don't just go with a black and white Ray Kroc is terrible McDonald brothers are perfect, or Ray Kroc is perfect and the McDonald brothers are idiots. I am completely in support of Kroc's vision. The brothers never wanted to go to the scale he did. Even when they tried expanding beyond one location, they could keep no quality control, so all menus were different. (I'm not sure if you even watched the movie?). My one beef was Ray not letting them keep their original location. I'd at least have that basic level of appreciation and respect as a businessman to let the guys who started the restaurant to keep their original location. But those did not have the real estate and business savvy that Ray did. Next time think a little bit before you just leave a comment.

  • @MackTheGovnah
    @MackTheGovnah Рік тому +20

    If it were not for Ray, the world would not know McDonald’s today!

    • @davedavidson4548
      @davedavidson4548 10 місяців тому +3

      bot comment

    • @MackTheGovnah
      @MackTheGovnah 10 місяців тому +3

      @@davedavidson4548 nope

    • @davedavidson4548
      @davedavidson4548 10 місяців тому +4

      @@MackTheGovnah beep boop

    • @MackTheGovnah
      @MackTheGovnah 10 місяців тому +3

      @@davedavidson4548 Dave, why do keep saying I’m a bot. Dude, I’m not a frigging bot! Are you really saying that Ray Kroc didn’t make Mickey Dees what it is today?

    • @davedavidson4548
      @davedavidson4548 10 місяців тому +2

      @@MackTheGovnah Beep boop.

  • @luishumbertovega3900
    @luishumbertovega3900 10 місяців тому +5

    How can Ray Kroc say something in 1993 (12:37) when he died in 1984 ??? 🤔

  • @bherber
    @bherber Рік тому +13

    You don't have to "take sides." I like recognizing the contributions of both the McDonald brothers and Ray Kroc.

    • @joyceacnarf3251
      @joyceacnarf3251 Рік тому +3

      Last part of the movie "The Founder"
      Unable to prove their handshake deal, the brothers never received their royalties. (1% as agreed )
      Today those royalties would be worth over $100 million per year.

    • @bherber
      @bherber Рік тому

      @@joyceacnarf3251 I would totally agree with you in that the brothers should have gotten that in writing. Good lesson for anyone going into business

    • @doddsino
      @doddsino 9 місяців тому +2

      ​@@joyceacnarf3251
      The handshake deal is a myth. It didn't happen. Neither brother ever mentioned such a deal in theit lifetime, and wasn't even a talking point until well after both Kroc and the brothers were dead.

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому

      @@joyceacnarf3251 The handshake deal is a Hollywood lie made up by the screenwriter Robert Siegel or the director John Lee Hancock.

    • @Mississippi4Clemson
      @Mississippi4Clemson 6 місяців тому +1

      I don’t take sides , I simply don’t eat there , Ever .

  • @uwillal
    @uwillal 9 місяців тому +3

    in the movie about Ray Kroc starting McDonalds, "The Founder" , one of the McDonalds brothers asked Kroc him why he bought the namec from them instead of just stealing the the idea and he told them "I need the name McDonalds, No one eats at a restaurant called Kroc's"
    Kroc did not scam the MaDonalds brothers. He paid them $2 million just for the name and they kept their business. The only reason his McDonalds turned out worth millions more is because of what Croc did with the business
    But I suppose put out bad UA-cam videos nobody would wanna watch. I would lie about it too.

  • @doddsino
    @doddsino 9 місяців тому +15

    It's always funny when people accuse Ray Kroc of being some kind of thief or fraud. Nothing could be further from the truth.
    The crux always seems to be that he "ripped off" the McDonald brothers. Much of this assumption comes from a movie that is, for lack of a better word...fictionalizes and trivializes the story, even though I did enjoy the movie...it's largely manipulative.
    So did Kroc "steal" the business? Absolutely not. They didn't even have a bad relationship! Kroc was fascinated by the McDonald's restaurant, like many other visionaries at the time were. However, instead of copying the process like dozens of others did, Kroc approached the brothers and they agreed to a franchising deal. Follows the movie so far, right? Well, what the movie doesn't tell you is how unmotivated the brothers were to be involved in the process of growing the business. Kroc was developing many ways to build consumer trust, which meant only franchising to the right people. The movie paints the real estate side as a means to make Kroc rich, which isn't correct. The brothers were well aware of move, and openly endorsed it, which they had to since it was tied to their company, which required them to sign off on absolutely every single change.
    So why was the real estate move important? Because prior to that, most people who would franchise a business, their goal was to make as much money as possible. This meant they would buy local cheap products, set the prices how they wanted, and largely ignore the business if it made a profit, meaning these stores would be unappealing for families and whatnot. Kroc absolutely hated the idea that franchisees wouldn't do their part to upkeep the business. Being a franchisee at McDonald's would require them to buy all their products from McDonald's directly, the prices were set, and if they ignored their stores, they would forfeit the contract.
    So remember how I mentioned people would rip off McDonald's? Not only did the precursor to Burger King do this in Florida, but even McD's franchisees tried to rip off McDonald's...with one restaurant being Sandy's...a place most people most people have never heard of, but they could have very well been today's McDonald's. Anyways, Kroc realized that the franchisees breached their contract, and decided to take them to court. But again everything had to be approved by the brothers, and they were hesitant to act. Kroc understood if you don't protect your brand, people will steal it.
    This is where a lot of people enjoy trying to dunk on Kroc for being a "failed businessman", when most people don't grasp that most businesses fail for a multitude of reasons. Kroc was seasoned and knew the trials of business and knew if you let people walk on you, then you will absolutely fail. The McDonald brothers by contrast knew their own failures, but their failures were all in attracting consumers. So when it came to grow, the brothers absolutely has no clue to how to expand beyond their infant creation. In the Dictaphone recordings that survive in which the brothers talk to Kroc about the growth of the company, you can tell their focus is all on the cosmetics of the brand, while Kroc would lay out an idea from start to finish, with predictions on what he thought would come from that idea.
    So it goes back to my point from before. The brothers had a great idea, but Kroc understood the future. And to have the brothers approve of every decision when Kroc was the one doing all the heavy lifting, it just created an extra step in the journey. So Kroc approached the brothers with an idea.
    When the brothers first opened their San Bernardino restaurant, their goal was to both become millionaires by the time they were 50 years old. Unfortunately, this did not happen. While their San Bernardino store was successful, it had a base set of customers that wasn't going to grow larger than it was. For the brothers to become millionaires, they would have needed to work at least another 20 to 30 years, provided their single restaurant survives the dozens of ripoffs.
    So Kroc approached the brothers about buying their business. Despite what the movie tried to paint, they were warm to the idea. Kroc showed from the beginning that he was focused on maintaining their vision for the brand. So when he gave them each $1.3 million, they were quick to agree. That is roughly $12.7 million dollars today.
    But was that a bad deal? In 1961 it wasn't. McDonald's wasn't the brand it is today. They were getting big, but there were plenty of burger joints that could very well have been in their same position. So yes, even in 1961, McDonald's could have failed...and the brothers knew that, so getting out while they were in their mid 50's made sense.
    But what about the handshake royalty deal? Well, that's likely a myth. This was never mentioned by the brothers or by anyone other than their descendants many years later. Not only would it be stupid to have a deal via handshake for anyone, but Kroc would have been a fool to include any royalty deal. Kroc was putting every extra penny back into expansion. People don't understand that Kroc worked VERY hard to expand, and didn't personally benefit until many years later. Many other people in the company became millionaires before he did.
    But let's look at it like this. If I have a lemonade stand, and I sell 4 glasses a day. Then you come along, buy the business, expand it, then start selling 1,000 glasses a day...do you owe me more money?
    At the end of the day, everyone benefitted. McDonald's became a success in a way that the brothers could never have imagined, and wouldn't have been able to do with Kroc. For his part, Kroc surrounded himself with people who were willing to work as hard as he did, and like I mentioned, everyone benefitted. Kroc wasn't a perfect man by any means, but he was still a great man who had his personal fortune donated to charity after his death. The movie paints him and Joan having an affair without mentioning that they were both divorced for over 10 years before they began a relationship. The brothers for their part went and invested back into the company in the 1970's making even more money. Had history been any different for any of the parties involved, McDonald's wouldn't be the world brand it is today. No matter what you think, McDonald's has helped create a cheap efficient meal for millions of people, a warm environment for millions of people, a job for tens of thousands of people, and a success story for Ray Kroc, Maurice McDonald and Dick McDonald. They are the American Dream.

  • @zachdelong1039
    @zachdelong1039 9 місяців тому +7

    Can’t say they was screwed when they was paid exactly what they asked for.

  • @claudeyaz
    @claudeyaz 2 роки тому +13

    Yeh McDonalds would have been Nothing without croc pushing to improve...and Harry Sonnenborn who was the financial genius that pushed the idea that McDonalds wasn't a restaurant business but a "land business."
    But if croc was pushed outta McDonald's..he would have made his own fast food restaurant

    • @hoptard
      @hoptard 2 роки тому +1

      Nehhhh, he was already spiraling down the toilet financially, plus he had a storage unit full of foldanooks and 5 cup milk shake machines, hahaha. The pure dumb luck of Sonneborn (the real genius) eavesdropping was key, right place/time, of course Kroc WAS smart enough to "listen" and seize, unlike the 2 meatheaded brothers.

    • @Crazy-Horse-Tx.
      @Crazy-Horse-Tx. Рік тому +3

      What is real bad is how even Sonnenborn got screwed by Croc.

    • @GetReal521
      @GetReal521 11 місяців тому +4

      It’s Kroc, not croc.

    • @doddsino
      @doddsino 9 місяців тому +4

      @@Crazy-Horse-Tx.
      They had different views on which way to take the business, and Sonneborn resigned. It happens. But he was still a multi millionaire from it.

  • @jaygothard7797
    @jaygothard7797 Рік тому +10

    I'm a fan of building a time machine so I can go back to when McDonalds was still good.

  • @texstylecanada
    @texstylecanada 3 місяці тому +2

    Even Richard McDonalds said they didn't get scammed.

  • @bherber
    @bherber Рік тому +45

    I don't mind what Ray Kroc did in franchising McDonald's. The McDonald brothers really had no drive or motivation to expand. BUT I don't like how he didn't allow the brothers to keep their original location. He could've easily just let them keep that one location.

    • @joeblow2069
      @joeblow2069 11 місяців тому +4

      Fair enough.

    • @ziaali319
      @ziaali319 11 місяців тому +3

      @@joeblow2069it’s a law of power, destroy your enemies totally. Ray has to be the hero in this story, and that’s why the brothers need to be out.

    • @selfdo
      @selfdo 11 місяців тому +6

      Kroc had to borrow even against his shares and the McDonald's franchise fees in order to buy out the brothers. He had to keep the name and original restaurant to repay the loan. McDonald's could have just as easily gone under or been bought out by a competitor as we so many other chains of the time.

    • @bherber
      @bherber 11 місяців тому

      @@selfdo - No shit... You're not providing any new information. I support Kroc even more strongly than you do. I'm just saying let the brothers keep the original cocksucking location even if they renamed it to "The Big M." I wouldn't give a rat's cunt. If it weren't for them, Kroc would not have been able to do what he did.

    • @monkey39128
      @monkey39128 9 місяців тому +4

      They did keep it, they just had to change the name.

  • @deconicci
    @deconicci 2 роки тому +21

    Never would I ever let a person gangsta my shit. The brothers should have did things different.

    • @smallguy9119
      @smallguy9119 Рік тому +2

      mc donalds wouldn't be that famous today then

    • @fernandoortiz8875
      @fernandoortiz8875 Рік тому +5

      @@smallguy9119 yeah but yet again the brothers can't have a share because they don't own it anymore it's sad though those two brothers worked hard to make something for themselves and another guy strips away everything from them all there hard work just puff gone for 1 mil each and what makes matter worse this guy had the audacity to take the name McDonald's for himself.

    • @tylerdurden9215
      @tylerdurden9215 Рік тому +2

      @@fernandoortiz8875 50million in todays money nothing to sneeze at

    • @ceebecks
      @ceebecks Рік тому +6

      Imagine the most successful franchise restaurant carrying your name and your family gets no royalties.

    • @encounterwithjesus
      @encounterwithjesus Рік тому

      @@fernandoortiz8875 Well the brothers didn't mind the 'Fat cheque'. You think yours is good only until you see another one's is better. But the brothers should have insisted on putting it down in writing their royalties. Should have known better than to give in to a money shark.

  • @timblossom8904
    @timblossom8904 9 місяців тому +2

    The McDonalds lie... 100% the brothers were not scammed. Know how to be sure? They each had 1 million dollars in their bank accoubt to sue him with... thats a load of screwing with Ray Croc if they thought they were wronged.

  • @joeblow2069
    @joeblow2069 Рік тому +12

    The title is a lie.
    Kroc made the brothers rich.
    I'm reporting this misinformation to youtube.

    • @dl6262
      @dl6262 7 місяців тому +6

      Oooh we have a badass over here

    • @FP194
      @FP194 7 місяців тому +1

      Video still up after five months so I guess you lose on that count

    • @joeblow2069
      @joeblow2069 7 місяців тому

      @@FP194 What does that have to do with it?

  • @shaunclemtiger
    @shaunclemtiger 4 місяці тому +1

    He made them more money than they ever would have made. Scam is not the word. They each got 1 million in the 60s. That a ton of money for what 1 restaurant

  • @Sanre
    @Sanre Рік тому +6

    lesson learned fellow geniuses: Always patent your names

    • @kev3d
      @kev3d 11 місяців тому +1

      Patents are for inventions. Trademark is for names.

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому

      Your are not correct, you cannot patent or copyright a name or title. You can trademark a company name or product name through the United States Copyright Office. You must show a unique name and why it must be protected. You can only copyright a song or a movie script (screenplay) and not a song or movie title. You can patent a machine, a process (McDonald's Speedee System), medicines, products and other things.

  • @medfordhosts1758
    @medfordhosts1758 4 місяці тому +2

    they founded the restaurant, he founded the corporation

  • @johnsciara9418
    @johnsciara9418 Рік тому +8

    One topic brought up in Grinding it Out, was that the McDonald brothers had sold franchise rights in Cook County Illinois, where Kroc opened his first McDonalds. He had to buy out the franchise owner for Cook County, so the Brothers had done bad first to Kroc. Of course, this is Ray Kroc's side of the story.

    • @joyceacnarf3251
      @joyceacnarf3251 Рік тому +3

      Last part of the movie "The Founder"
      Unable to prove thier handshake deal,
      the brothers never received their
      royalties.
      Today those royalties would be worth over $100 million per year.

    • @johnsciara9418
      @johnsciara9418 Рік тому +3

      @@joyceacnarf3251 And did the brothers go back on the deal they had made with Ray Kroc to include the San Bernardino location when he paid $2.7 million for the rights to McDonalds?
      It didn't seem as if you addressed my comment

    • @joeblow2069
      @joeblow2069 11 місяців тому +1

      @@joyceacnarf3251 There was never any such deal. Nobody would make such a deal.
      If the brothers wanted perpetual royalties they should not have sold out. they were getting .5% of gross sales already.
      Why should they get $100M a year from stores that were founded after they sold out? Once they sold out their interest in the company was over.

    • @joeblow2069
      @joeblow2069 10 місяців тому +2

      @@joyceacnarf3251 There was no such deal. It makes no sense to any educated person.

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому +1

      The idea Kroc scammed the brothers is typical Hollywood drama to make the film more interesting.

  • @ilovetolurkaround
    @ilovetolurkaround 5 місяців тому +1

    If the movie was accurate, the brothers only got the system, name but they didn’t a tiny bit of expansion. So safe to say that 99% of Mcdo today’s credited to Ray.

  • @MoneyOverEmotions
    @MoneyOverEmotions 5 місяців тому +1

    I see stories like this as the original founders NOT valuing their name.

    • @doddsino
      @doddsino 22 дні тому

      You're right. They really didn't. There were literally dozens of burger joints that outright ripped off the McDonald's style, including the restaurant that would become Burger King. Neither brother bothered to trademark, copyright or trademark any of their brandings, INCLUDING the name McDonald's. One joint name Sandy's pretty much duplicated McDonald's in every possible way after a franchisee decided to go out on his own, and started converting McDonald's restaurants into Sandy's...and the brothers wanted to do NOTHING even though this was illegal. Kroc actually had to twist their arm to understand the importance of protecting your brand.
      So for what it's worth, Ray Kroc could have actually just stolen McDonald's if he truly wanted to, but he didn't. He paid them both more than what the company was worth, then spent the next decade tirelessly expanding without their input or assistance.

  • @foxbodyblues6709
    @foxbodyblues6709 2 роки тому +12

    This is horse sh!t. I’ve heard archived interviews with one of the brothers. They were old and wanted to retire. They got one million bucks free and clear and turned down high paying jobs in the McDonalds corp.
    They wanted to be with their families and go fishing. They were adamant about this.

    • @kev3d
      @kev3d 11 місяців тому +2

      A million dollars each! A million in1961 that comes to the equivalent of about $10,000,000 today, according to the usinflation calculator. A million dollars and no more headaches? That's a pretty good retirement.

  • @ranaahmed9741
    @ranaahmed9741 Рік тому +3

    Can someone tell how did the chain of command change after the brothers made a partnership with ray Kroc? Was he beside them on the chain, or below. Later on he is above

  • @KeneashaTaylor
    @KeneashaTaylor 4 місяці тому +1

    Watch the movie... He made them an offer... Bettering the franchise...

  • @tylerdurden9215
    @tylerdurden9215 Рік тому +32

    Croc paid them over 49 million in todays money. They refused progress and sold out not rays fault he put everything into expanding the company and the brothers didn’t

    • @ygwaltgmb
      @ygwaltgmb 11 місяців тому +3

      He didn't pay them anything

    • @joeblow2069
      @joeblow2069 11 місяців тому

      @@ygwaltgmb $2.7M liar. That is what they got for selling their interest in the company. You are a liar.

    • @fredbarnesjr.1044
      @fredbarnesjr.1044 9 місяців тому

      @@ygwaltgmbhe paid them for the company but cheated them out of royalties

    • @doddsino
      @doddsino 9 місяців тому +3

      ​@@ygwaltgmb
      Proof?

    • @joshuabaggett8854
      @joshuabaggett8854 9 місяців тому +3

      @@ygwaltgmbhe paid them 1.3 million a piece. But never gave them their 1% in royalties which is worth around 100 million today.

  • @RodDMartinJD
    @RodDMartinJD 17 днів тому

    Contrary to the movie, there is no evidence Kroc scammed the brothers, who both said till they died that they had no regrets about the deal. Moreover, they reinvested the proceeds of the deal into McDonald's and made a fortune off of Ray's success.
    You'd have never heard of McDonald's if it weren't for Ray Kroc. And because of Ray Kroc, McDonald's now feeds one out of every 100 people on Earth every single day.
    Nothing remotely like that would have ever been possible had the brothers' business plan (if you can call it that) been followed.

  • @dubyusmc
    @dubyusmc Рік тому +6

    This and the movie always make me crave for some Mcds lol

  • @andymckane7271
    @andymckane7271 10 місяців тому +2

    The "original founders" thought small. Without Ray Kroc, McDonald's would not have grown to be what it is today: The McDonald's Corporation. Your story seems to be fair to both the two founders of the McDonald's Hamburger restaurant . You are also fair to Ray Kroc. Mr. Kroc was not only a workaholic, he was also a strategic genius in creating not only the world's largest hamburger chain, but also the world's largest (and best known) restaurant. I wish we had a McDonald's restaurant here on Molokai in Hawaii! Andy McKane.

    • @plawson8577
      @plawson8577 9 місяців тому

      No.

    • @monkey39128
      @monkey39128 9 місяців тому

      @@plawson8577 Yes.

    • @monkey39128
      @monkey39128 9 місяців тому +1

      You summed it up very well. It would've been one well run restaurant without him.

  • @danlove12k
    @danlove12k Рік тому +4

    If it wasn’t for Ray Kroc there be no McDonald’s. Give him credit. Yeah he did it unethically but tell me what businessman doesn’t do this. Watching this got me hungry. I’m heading to McDonald’s 🤪🤪

    • @joeblow2069
      @joeblow2069 11 місяців тому +3

      What was unethical?

    • @sunkissedbytmh3219
      @sunkissedbytmh3219 11 місяців тому +1

      Shouldn't sell your soul to make a dollar.

    • @joeblow2069
      @joeblow2069 10 місяців тому +1

      What was unethical?

  • @SergioGarcia-on1cv
    @SergioGarcia-on1cv Рік тому +4

    In a 1993 interview he said, am I missing something he died in 1984.

  • @IAMKINGOFKS
    @IAMKINGOFKS 10 місяців тому +4

    Dick McDonald is the Reason they were sidelined on their own business. The hassle they gave was ridiculous and petty. Kroc did all the groundwork for them in the field, and they sat back and took their 25% while ray earned a whopping 1.9%😮 It was a hassle for Kroc to work with them. They never believed in their own business from the beginning. Kroc saw the restaurant and fell in love! Kroc is the reason The World loves McDonald’s😉

    • @davedavidson4548
      @davedavidson4548 10 місяців тому

      Why are you worshipping a company that would kill you without a second thought to make money? These are the guys who invented "happy meals" so they can sell food that's as addictive and unhealthy as hard drugs to small children.

    • @plawson8577
      @plawson8577 9 місяців тому

      Nope.

  • @williamj.dovejr.8613
    @williamj.dovejr.8613 Рік тому +8

    The restaurant would have died with the brothers...Kroc is the reason the name is known today no matter how he did it.

  • @Mananon88
    @Mananon88 Рік тому +6

    Ray Kroc built McDonald’s into what it is today

  • @hughmcpherson4635
    @hughmcpherson4635 9 місяців тому

    Ray Kroc did NOT scam the McDonald brothers, the authors here want to use this "sensationalized" title to gain attention to a video with several inaccuracies. Kroc realized the McDonald's brother's dream of each becoming a millionaire, and in 1961 this was huge money. In this video it says in a 1993 interview Ray Kroc discussed why he needed the name McDonald's. I find this to be impossible to believe since Ray Kroc died of heart failure at age 81 on January 14, 1984. If you want the true details of this amazing story beyond this video and the 2016 film The Founder read John F. Love's 1986 Bantam Book McDonald's Behind the Arches.

  • @stevecasey2820
    @stevecasey2820 2 роки тому +3

    already covered better in the 2016 Movie 'The Founder' with Michael Keaton

    • @kev3d
      @kev3d 11 місяців тому +2

      Covered, but inaccurately.

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому +1

      Lots and lots and lots of errors in this film.

  • @bgraham928
    @bgraham928 2 роки тому +8

    How does someone who died in 1984 get interviewed in 1993?

  • @GetReal521
    @GetReal521 11 місяців тому +2

    Overall, your video is pretty accurate. However, your title, “How a Salesman Scammed the McDonald’s Brothers...” There was no scam. Scam implies fraud or swindling. A little more research would show that although Kroc was determined and some think unethical, he didn’t run a scam on the brothers. He didn’t commit fraud or swindle them out of their business.

  • @Chris-lh7wj
    @Chris-lh7wj 6 місяців тому

    Ahh, New Hampshire, that American state, learn something new every day

  • @dolfoboynas9583
    @dolfoboynas9583 Рік тому +7

    So in other words; Ray Kroc is to McDonalds what Elon Musk is to Tesla 😈😈

    • @roastedkiwi8394
      @roastedkiwi8394 Рік тому +3

      YES!! LIke @dolfoboynas9583 is to Dumbass!!

    • @GetReal521
      @GetReal521 11 місяців тому

      Not even close. Nice try.

  • @jasonk1891
    @jasonk1891 4 місяці тому

    An idea is only worth so much without effort and determination.

  • @Kinglioncrown
    @Kinglioncrown Рік тому +2

    McDonald's is winning

  • @Martin_ros
    @Martin_ros 6 місяців тому +1

    I read they were grateful for the way Kroc built the franchises and made them millionaires. They were upset he forced the original restaurant ( who they had gifted to their employees) under. But the Founder movie suggests they were cut out of royalties. Nothing else suggests royalties were part of the deal. Which was fair - no one knew the business would be as successful; it was relatively small when Kroc bought them out.I have also read Maurice McDonald had health issues in the early 60s - which was one reason they were willing to sell. He did not want to keep working - and both of them wanted some time to enjoy retirement. Their father had worked over 40 yrs at a job w no pension. They had set out to become millionaires and Kroc made that possible. Even if he became a narcissistic exaggerating blowhard later

  • @gbowers
    @gbowers 9 місяців тому +1

    The "Steve Jobs" of the fast-food industry!

  • @edsmith9995
    @edsmith9995 7 місяців тому

    Chic filet history would be great

  • @jamesbradley3291
    @jamesbradley3291 10 місяців тому +1

    If not for Kroc, McD would NOT be where they are as the McDonald brothers only had 1 store with no interest of expanding. And they each received a HUGE amount of $$$ based on the time. It would be equivalent to $1 billion today based on the devaluation of today’s dollar. Kroc was a marketing guru. Kroc is similar to the Apple story; where Steve Jobs was a marketing genius.

  • @louislopez55
    @louislopez55 11 місяців тому +2

    I recommend those interested read the book “Fast Food Nation-The Dark Side of the All-American Meal”. In the book it is said that the meat from as many as 100 cows is in every single hamburger McDonald’s sells. But later, the author was corrected, it’s not 100 cows, it’s 1,000. Also, the meat is usually from dairy cows that are past their milk-producing prime. I still eat at McDonald’s, maybe once every few years. But I get the chicken sandwich, and pass on the fry’s.

  • @aaronnichols9444
    @aaronnichols9444 8 місяців тому +3

    McDonald’s wouldn’t have ever become the most successful fast-food chain without Ray Kroc. The McDonald’s brothers had no ambition, the only thing they offered is their last name.

    • @beastdragon8381
      @beastdragon8381 7 місяців тому +2

      they legit came up with the whole idea with time, not just their name

    • @FP194
      @FP194 7 місяців тому +2

      Without the brothers, there would be no McDonald’s

  • @Optimistic799
    @Optimistic799 5 місяців тому

    Ray Kroc is the Man U would wanna talk to if u have a big vision

  • @JesseSellsHomes
    @JesseSellsHomes 2 місяці тому

    This new iPhone is 🔥

  • @joemckim1183
    @joemckim1183 Місяць тому

    I don't think Ray Kroc so much scammed them since at the end of the day the McDonald's brothers still made more money with Kroc then they would've made just staying as a single store restaurant. But they didn't make as much long term as they should've made.

    • @doddsino
      @doddsino 22 дні тому +1

      I agree with most of what you said, but why should they have made more? They didn't lift a finger to do any additional work that an owner or a CEO would do in their position, they just wanted to run their own little restaurant. It's the reason why their pre-Kroc franchises were run so poorly...they didn't even care about quality from those locations as long as the franchising fee was getting paid.

  • @justiSLA1
    @justiSLA1 9 місяців тому +2

    100% lying click bait

  • @Ceractucus
    @Ceractucus 7 місяців тому +2

    I disagree. Without the McDonald brothers Ray Kroc would have died a moderately successful salesman. Without Kroc the McDonald brothers would have died having run a small burger stand.
    It takes more than just a revolutionary idea to make a billion dollar business. It takes a revolutionary idea, with vision and implementation. Kroc should have honored his handshake deal, but he succeeded (at franchising) where the McDonald brothers had failed.

    • @FP194
      @FP194 7 місяців тому

      The brothers didn’t want to franchise their restaurant so how did they fail at it?

  • @adrianraygoza9221
    @adrianraygoza9221 8 місяців тому

    We pronounce the S in Des Plaines, IL. Just an FYI.

  • @mfcobb1
    @mfcobb1 10 місяців тому +2

    The title is bull crap.

  • @vicsilvas6096
    @vicsilvas6096 Рік тому +2

    i thought ray died in 1984?

  • @kbcinmedusn
    @kbcinmedusn 7 місяців тому

    I think that whatever business deal Ray had with Maurice and Richard are between them. I don't take sides in this matter. There is guilt and victimhood on both ends.

  • @cpclowner11Bravo
    @cpclowner11Bravo Рік тому +3

    It’s simple the brothers founded the concept and Ray kroc founded the corporation

  • @fjbltysuc
    @fjbltysuc Рік тому +6

    Kroc did not scam them! He asked them many times to help him expand. They were set in their ways. Ray was right, buisness is war!

    • @joyceacnarf3251
      @joyceacnarf3251 Рік тому +1

      Last part of the movie "The Founder"
      Unable to prove their handshake deal, the brothers never received their royalties. (1% as agreed )
      Today those royalties would be worth over $100 million per year.

    • @joeblow2069
      @joeblow2069 Рік тому +2

      @@joyceacnarf3251 There never was a 1% deal. Neither Mcdonalds brother claimed that money in their lifetime. Only relatives did after both had passed.
      You are aware that the brothers were getting royalties from 200 restaurants when they sold out? So why sell? Because $2.7M was a lot of money in the early 60s. Like almost $50m today.

    • @kev3d
      @kev3d 11 місяців тому

      @@joyceacnarf3251 The "handshake deal" is just a story that was told by one of the McDonald decedents and the story didn't pop up until Kroc and the McDonalds brothers were dead. It's just a story. What they didn't show in the movie was that Kroc had to borrow up to his eyeballs to scrape together enough money to buy McDonald's. In other words, he took a tremendous risk.

    • @IAMKINGOFKS
      @IAMKINGOFKS 10 місяців тому +1

      Thru court the family receives the royalties

    • @joeblow2069
      @joeblow2069 10 місяців тому +3

      @@IAMKINGOFKS They do not.

  • @gbrown3020
    @gbrown3020 11 місяців тому +1

    Not true. 😊

  • @AlanSenzaki
    @AlanSenzaki Рік тому +2

    Today everything is carelessly thrown together. Ever eaten a Big Mac recently?… it’s a big mess!!

  • @ralphabreu5022
    @ralphabreu5022 11 місяців тому

    Yea cover Chrysler Corporation

  • @BlackRiverGold
    @BlackRiverGold 5 місяців тому

    McDonald's would have been just as successful without Ray Kroc, the McDonald's brothers would have gotten to the same point sooner or later, so I don't give any credit to Mr. Crock. Yes, he built the McDonald's we know today, but not the dream of the McDonald's brothers who created and developed the fast-food style, just because someone has a successful way of approaching something, it doesn't mean that there is no other way to be successful. Over time, the brothers would have developed new methodologies to make much more delicious burgers, but once Mr. Crock took this into his hands, it was simply frozen in time. What we eat today is not what the McDonald brothers dreamed of, I mean, they wouldn't have stopped improving the burger taste.

    • @doddsino
      @doddsino 22 дні тому

      How would the brothers have gotten 'big'? They had ZERO business skills, didn't protect their brand and the pre-Kroc franchises were all disasters. The brothers wanted to focus on running their restaurant and nothing more. They were never going to get bigger, and eventually once other burger chains started growing, they would have been forced to sell the restaurant for a fraction of what they had gotten for it.

  • @ronaldsarmiento3156
    @ronaldsarmiento3156 9 місяців тому

    Please feature Jollibee.

  • @ProjectGrandMarauder
    @ProjectGrandMarauder 8 місяців тому +2

    Ray Croc didn’t scam anyone.
    He built a business from the ground up.

  • @livefreeNH603
    @livefreeNH603 8 місяців тому +2

    Ray didn't scam them. The Brothers could never have created what Ray did.

  • @NoName-ch2wg
    @NoName-ch2wg Місяць тому

    The brothers got the Royal screw that’s why never trust anyone and always have a lawyer

    • @doddsino
      @doddsino 22 дні тому

      They had a lawyer...in fact there was a great deal of legal presence during the 1961 sale.
      But how did they get screwed? McDonald's wasn't worth tens of millions of dollars in 1961.

  • @lolovest
    @lolovest 6 місяців тому

    Admit it, without Ray Kroc, there isn't going to be MCDONALD'S we have today, it would be just like White Castle, even a least-known brand already became dyfunct long time ago.

  • @afzalhakeen4941
    @afzalhakeen4941 6 місяців тому

    thats why i dont ever visit mcdonalds and ill never will

  • @BMe-ck6fd
    @BMe-ck6fd 2 роки тому +3

    Makes a good story and movie but is BS

  • @tonysmith6795
    @tonysmith6795 Рік тому +4

    I seen the movie, very interesting but, how did one man out think 2 men? The McDonald brothers could have easily patent the name, plus they were in their 40s or 50s, even i would of thought of that lol 😂😆

    • @cedriclouisguerrier1640
      @cedriclouisguerrier1640 Рік тому +1

      The McDonald brothers had no vision.
      Which is a prerequisite to any serious success in business.

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому

      He did not outthink them, he gave them exactly what they wanted.

  • @jprez7295
    @jprez7295 Місяць тому

    Im on the McDonald's Brothers

  • @sunkissedbytmh3219
    @sunkissedbytmh3219 11 місяців тому +1

    He was smart but ruthless and undercut both brothers. They all benefitted

    • @metsrus
      @metsrus 10 місяців тому +2

      the film exaggerated and added more drama. the McDonalds brothers were grateful Kroc made them millionaires. They had no interest or ambition for expanding. They sold Kroc the Mcdonald's name for millions and became even more wealthy when they used that money to buy McDonalds stocks.

  • @milwaukeemotor5995
    @milwaukeemotor5995 Рік тому +3

    the original founders, otherwise ray croc has no concept to expand, it's easy to expand something already established (the real estate aspect let's give sonneborn the credit not even ray crock thought about it)

    • @BushidoVXX
      @BushidoVXX Рік тому +3

      Nothing was easy about this incredible story and development.

    • @GetReal521
      @GetReal521 11 місяців тому +3

      It’s Kroc, not croc.

    • @monkey39128
      @monkey39128 9 місяців тому +2

      "It's easy to expand something already established". Clearly you've never run a business.

  • @timford8436
    @timford8436 10 місяців тому +2

    who made this video? how could Ray Krok give an interview in 1993 when he died in 1984?

    • @hughmcpherson4635
      @hughmcpherson4635 9 місяців тому +1

      Doc Brown?

    • @FP194
      @FP194 7 місяців тому

      So they got the date wrong

    • @timford8436
      @timford8436 7 місяців тому

      Well it bugs me when I hear how the brothers got screwed when that is the furthest from the truth I saw an interview with Dick before he died the brothers asked Krok to work with them to replace the guy before him and he said they had a great relationship with Krok and they wanted to retire and all they wanted was 1 million each and the first store no royalties since they had no heirs Dick said the brothers were stunned when they started hearing the rumors after they retired

  • @williamj.dovejr.8613
    @williamj.dovejr.8613 Рік тому +4

    If the brothers weren't smart enough to patent the name, the concept, and the operation then they didn't deserve to hold on to the business..it would have died with them without Kroc. The founder is a master class and a cautionary tale.

    • @collind7158
      @collind7158 Рік тому

      It doesn't matter if it would have died with them. It was theirs to die with just because you can't do something legally doesn't give you the right to steal it. You have an awful mind that's just full of I'll take whatever opportunity I can to fuck you over unless you do everything in your power legally to stop me.

  • @gregarioussolitudinist5695
    @gregarioussolitudinist5695 Рік тому +1

    The McDonald brothers were not interested in what Ray Kroc was selling. why would anyone take on that kind of headache?

    • @ziaali319
      @ziaali319 11 місяців тому +2

      Headache? World domination you mean.

    • @kev3d
      @kev3d 11 місяців тому +2

      Kroc wasn't selling. He was buying. And he made the McDonald brothers rich.

  • @hughmcpherson4635
    @hughmcpherson4635 9 місяців тому

    I find it interesting that this video creator's name is "Business Stories" and their logo is "BS" as reflected in their slanted view of things!

  • @eddiekulp1241
    @eddiekulp1241 2 роки тому +4

    Ray Crock took those brothers for a ride , but can't be stupid in this world

    • @arthurgarcia4389
      @arthurgarcia4389 2 роки тому +3

      Then don't make stupid post that don't make sense.

    • @tylerdurden9215
      @tylerdurden9215 Рік тому +2

      I let someone rip me off and leave me 49 million in todays money

    • @GetReal521
      @GetReal521 11 місяців тому +1

      It’s Kroc, not Crock. A little more brain power please.

  • @mariepacheco9324
    @mariepacheco9324 Рік тому +5

    He was a thief and a swindler the company should just give the family what was promised to these brothers and make it right

    • @joeblow2069
      @joeblow2069 11 місяців тому +3

      He stole nothing. You do not know what you are talking about.

    • @monkey39128
      @monkey39128 9 місяців тому

      Poor person mentality.

  • @Junzka
    @Junzka 6 місяців тому

    From burgers to poison!

    • @doddsino
      @doddsino 5 місяців тому

      Oh man...I ate McDonald's a few weeks ago...I bet I'm going to die! 😮

    • @doddsino
      @doddsino 21 день тому

      Hey, just checking in...I think I'm okay. Seems like the poison was a false alarm. Or maybe it's that slow working poison?

  • @charaznable8072
    @charaznable8072 8 місяців тому

    Dude watched The Founder and took it as facts and made a youtube video LOL.

  • @jayhurley8370
    @jayhurley8370 8 місяців тому

    McDonald’s brothers were robbed. Ray Kroc is a crook.

  • @thunderthormx
    @thunderthormx 7 місяців тому

    The McDonald's brothers built a great restaurant..... Ray croc built an empire......

  • @neilchamberlain2731
    @neilchamberlain2731 7 місяців тому +1

    Ray didn't scam anyone. These 2 guys could have gone for the ride ! There egos got in the way

  • @Garth2011
    @Garth2011 2 роки тому +10

    Kroc was a sociopath. McDonald's paid Ray to expand/franchise their hamburger stands. Who's idea was that? McDonald's and they paid the man to invent what he did, just like any huge corporation today that invents something huge and popular, does the employee get the credit? No, the company does because they pointed things in the right direction and they paid for the research etc. Ray was just your typical yapping salesman who was interested in moving ahead faster than the McDonald's brothers were. Ray just had more drive which has nothing to do with the original concept and plans to expand. Had Ray expanded faster than the brothers had, he could have tanked the entire franchise idea so, let it be.

    • @OGxGoku
      @OGxGoku 2 роки тому

      you said a bunch of nothing. shut up kid

    • @diamantefinesse
      @diamantefinesse Рік тому +5

      you said a lot & said really little at the same time

    • @cedriclouisguerrier1640
      @cedriclouisguerrier1640 Рік тому +3

      The movie actually shows what the difference maker was: vision
      Mr.Kroc and Mr. Somneborn had vision.
      They understood that McDonald's future was in real estate.
      While the McDonald brothers thought sitting on their hands collecting franchising fees was good enough.

    • @BushidoVXX
      @BushidoVXX Рік тому +1

      You’re not qualified to diagnose anyone, let alone remote diagnose. Too many social media experts around.

    • @Jsmooth1174
      @Jsmooth1174 Рік тому

      How does that make him a sociopath? It was clear he was willing to put more work in to expanding their franchise and they didn’t value their business enough to not let him buy them out. It seems Ray had more vision for what the company could be than what the McDonald’s brothers did

  • @danielcastaneda5931
    @danielcastaneda5931 Рік тому +4

    The comments are stupid af! Lmao. If it wasn’t for this man, we wouldn’t have McDonald’s like know of today.

    • @pratheep7071
      @pratheep7071 Рік тому

      U mean less fat kids on the streets?

    • @KDTHAPHENOM
      @KDTHAPHENOM Рік тому +1

      It's really nothing to brag about tho. Food is nasty af

  • @LAKESHACOKE-hf3ov
    @LAKESHACOKE-hf3ov Рік тому

    LEAVE 🏠 MONYKA*

  • @luc515025
    @luc515025 Рік тому +5

    Let’s go ray