Who here has watched the The Founder?
I’m always fascinated by true life stories and this I watched recently.
The movie is based on the story of the McDonald’s business which was founded by two brothers (McDonald brothers), but ended up being taken away from them by Ray Kroc, their salesman who outsmart them. Ray Kroc today is identified as the Founder of McDonald’s.
What I learned in summary are:
Curiosity: Ray Kroc used to sell milkshake machines to restaurants and it was not very lucrative. One day, he gets an order for 8 machines from a very far restaurant. He got curious as to why so many milkshake machines are ordered by one restaurant. He could have simply delivered the machines via a dispatch service, but he traveled the distance to see the restaurant and that was how he discovered McDonald’s.
Persistence: The McDonald brothers slacked a lot. They just felt very comfortable with their failed attempts and usual way of doing things. Ray Kroc appeared to have more ginger and belief in the brand more than them. Business owners must always believe in their brand.
Be open to fresh insights: Ray Kroc suggested great ideas to the brothers but they weren’t open to welcoming them. They were supposed to partner with Coca Cola and use powdered milkshake, but they refused.
Fresh insights worked perfectly for Ray Kroc after he accidentally met a consultant that overheard his conversation at the bank. The guy made him know that by purchasing plots of land that would be leased to the franchisees, it would create a revenue stream that can be used for expansion.
Written and well negotiated contracts are super important: I used to wonder why @atynukeh (of @Cregital) used to hala about signed contracts and vex when an agreement is not properly documented in paper. An unclear and unwritten contract can make or mar an agreement, and that was what marred the McDonald brothers.
Ray Kroc offered a blank check to settle the business and the brothers agreed to a $2.7 million lump sum payment, ownership of their original restaurant in San Bernardino, and a 1% annual royalty, but when the time comes to finalize the agreement, Ray Kroc refused to include the royalty in the settlement and instead offered it as a handshake deal. In the end, we discover that the McDonald brothers were never paid their royalties, which could have been earning them around $100 million every year.
Marry someone in sync with your ambition: Ray Kroc divorced his wife and married one of his investor’s wife because she had the same drive he had for the business, unlike his wife who was very laidback.
The movie didn’t seem interesting at first but there were powerful lessons to learn. If you have watched the movie, what did you learn?