Inglés - B2.3 - How a man scammed McDonald's for millions of Dollars
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Questions and Answers

True or false:The McDonald's brothers initially found success with carhop services.

False

True or false: Ray Kroc convinced the brothers to franchise their business and took control of opening new locations.

True

True or false: The brothers received a piece of the profits from the franchise rights they sold to Kroc.

False

True or false: Kroc faced no challenges in the design and approval process for new locations.

<p>False</p> Signup and view all the answers

True or false: Kroc realized the business was more in the real estate than food industry and started a new company to buy and sublease land and buildings to franchises.

<p>True</p> Signup and view all the answers

True or false: The McDonald's brothers sold their business to Kroc for $2.7 million and kept their original location.

<p>False</p> Signup and view all the answers

True or false: Kroc grew McDonald's into a worldwide success after buying out the brothers.

<p>True</p> Signup and view all the answers

True or false: Ray Kroc wanted to buy the brothers' business but they only agreed to a franchise deal.

<p>True</p> Signup and view all the answers

True or false: The brothers received half a percent royalty on all future McDonald's proceeds.

<p>False</p> Signup and view all the answers

True or false: The royalties that the brothers could have received would have been worth over $100 million per year today.

<p>True</p> Signup and view all the answers

Study Notes

  • McDonald's was invented by two brothers who replaced carhop services with take-out windows.
  • They struggled at first, but eventually found success with their hamburgers, fries, and milkshakes.
  • A salesman named Ray Kroc convinced them to franchise and took charge of opening new locations.
  • Kroc was given rights to open franchises in the US and receive 1.9% of gross sales.
  • The brothers sold the franchise rights but did not receive a piece of the profits.
  • Kroc faced challenges with the design and approval process for new locations.
  • He realized the business was more in the real estate than food industry and started a new company to buy and sublease land and buildings to franchises.
  • The business significantly increased its revenue and signed up more franchises.
  • Kroc wanted to buy out the brothers but they asked for $2.7 million and insisted on keeping their original location.
  • Kroc eventually bought out the brothers and grew McDonald's into a worldwide success.
  • The McDonald's brothers had a successful restaurant making $100,000 annually.
  • Ray Kroc wanted to buy their business but they only agreed to a franchise deal.
  • Ray opened a McDonald's across the street and ran the brothers out of business.
  • The brothers asked for half a percent royalty on all future McDonald's proceeds.
  • Ray agreed but convinced them to keep it out of the contract.
  • The brothers never received any royalties.
  • The royalties would have been worth over $100 million per year today.
  • The McDonald's restaurant invented the fast food business.
  • Ray Kroc's memoir mentions that the brothers could have been wealthy if they had played their cards right.
  • The article asks readers to share which part of the story they found inspiring.

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