Kroc buys the McDonald brothers out - The Founder (2016) 

The product doesn’t have to be good quality, the salesman has to be.

never ran into a broken mcdonalds machine in my 30years of eating there. at least in canada anyway

It's a joke that stems from UK banter, because of one ex-employee stating "It was never broken, just we didn't bother cleaning it." Ever since then it became a meme.

No money in burgers and milk. It's all in the margins, if you want McDonald's to go broke buy a hamburger and a milk. Nobody does.

Not true, and a bit more than cynical.

nice

Lol this movie was waaay too quick, great 1st act, great acting, but overall the script felt like a bad imitation of Aaron Sorkin's expose writing.

And Disney couldn’t do it with two obviously evil characters either.

@@shamusbob7969 eh

No he wasn’t a villain. That’s just business it happens often in the corporate world.

100 percent, no option, no way, no how, just walk away and demand it in writing or the deal is off !!

Facts

And if possible, on video

THEY DID. He went around that, he had a contract. But soon he became rich, started a separate company and then when they went to court of course he had better lawyers, more money, so he beat them.

You’re wrong, they had a contract. But he had better people and saw a workaround. It’s not that they didn’t have it on paper, it’s that they weren’t through enough I guess

They dug their own grave. Committing to a deal based on a handshake? Are you kidding me?

@@kr1dfy453 Well, people were more trustworthy in those days, and the brothers trusted Ray Kroc. Big mistake. Big. Huge.

@@ellenekanem if that handshake didint happen Mcdonalds would've never came to our mouths

Krex GB lol don't speak if you don't k ow what you're talking about

Shut Up Meg

Meanwhile, everyone in the cast of The Power of the Dog was nominated. All four leads turned in ‘80s television movie-of-the-week performances on a boring script and were given the highest nod in the land.The system is broken.

Saw this at the theater and I was the only person in there. Not sure why this movie didn't click. It was good.

I had to search this movie out really hard when it was released in theaters. Its like it was meant as a small release when it really should have got a great marketing push and wide release. Truly great movie

Well you can't really make blanket statements that a certain actor deserved to be nominated unless you axtually list who was actually nominated so we can determine who he deserved to be nominated over. There are only 5 nominations every year and there is more than 5 great acting performances every year. The lead actors that year were Casey Affleck, Andrew Garfield, Ryan Gosling, Viggot Mortensen and Denzel Washington, not exactly a bunch of chumps.

@@ChadMichaelSimon I'd advise you look up how Harvey Weinstein essentially bought the Oscars in 1999, when Shakespeare in Love won best picture instead of Saving Private Ryan. It's never about the merit of the film or how good it is, it's all about sucking up to the Academy.

Same

I felt inspired

@@winser21 dog eat dog, rat eat rat. Bon appetite.

@@winser21 to each their own I guess.

Got depressed too. It made me hungry and bought some McDs

I doubt it happened in real life. I've read that if a handshake deal is witnessed by lawyers, it counts just as much as in writing. But for the purpose of the movie, I guess at this point they just wanted closure, and were happy to walk away with their cheques alone.

@@cybernautadventurer so the handshake is just for adding drama to the story? I wouldn't accept that handshake. It just has no sense

​@@cybernautadventurer a handshake deal or verbal contract in general is just as binding as a written contract, lawyers don't have to be present.

@@RoastBeefSandwich But a handshake ends and words float out into the ether, unlike ink on paper.

Kroc fooled them knowing that they were nice guys and he was a shark.A very important scene in this movie is when Kroc comes and gives them flowers and a blank cheque at the hospital.Kroc gave them a choice but they didn't stake their claim.The McDonald's brothers were too stubborn and narrow minded to see Kroc's vision.He just played them because they gave him no choice.

Old McDonald had a farm and now he doesn't.

@@cowsmuggler1646 e i e i ohhhhhhh sh*t

He came out of it a millionaire so I would hardly call him a loser.

Pretty much goes with doing anything substantial in life.

No business becomes successful without stepping on someone else along the way. Most businesses become successful by if not doing crime (maybe not a crime at the time), then at minimum, doing things of seriously questionable morals.

I just realized how similar they are

Especially similar in the fact that they are not even 95% correct

I watched it straight after the social network too

@Ketan Kulkarni More so the betrayal between Mark and Eduardo.

@@thechrisman1345 Of course not, why would anyone expect a hollywood movie based on real events to be 95% accurate? That's pretty insane accuracy. At the end of the day it's a movie *based* on real events, not a historical documentary.

thats not exact, McDonalds wouldn't have been as big as it is today with out Mr. Krock. A better analogy would be to buy a house for 100k and then flipping it to be worth 100mil, yeah the original owners didnt get much from it but they wernt going to turn it into 100mil.

Don't forget the "Famous Amos" dude. He can't even use his own name.

@@robinabernathy2829 who??

Little late but wait till you see Social Networking

@@nickc4063 That's like stealing a 100k house and then saying "I turned it into 100mil so I'm not a scumbag"

I keep replying to others that $1.35 million is over $12.5 million today. He didn't leave these men in the gutter like other big deals where the true founder was given peanuts.

@@Rockhound6165 except for the fact that when the brothers started a new restaurant, not fast food, Kroc sued them for using a name similar to McDonald’s. He then built a McDonald’s next door and did everything he could to run them out of business. It worked and the restaurant went belly up within 5 years and the brothers went broke.

Plus a million back then was worth like $10 million today... They got enough to do whatever they wanted with the rest of their lives, as long as they don't blow the money like idiots

@@CamaroAmx if you get a check for $1.3 million (worth like $10 million today) and you're broke 5 years later you've got no one to blame but yourself LOL

@@Rockhound6165 lol but $12.5 million dollars is nothing considering the fact that McDonalds is worth over $196,000,000,00 BILLION dollars in todays money.

Wowwww 👍

'Crock' is an earthenware bowl. 'Crock of gold' is a very old saying. It's probably a reversal of that saying when people were disappointed to find out there was no treasure but a 'Crock of shit'.

​@@strangelee4400 ty for the education!

Cigarettes

Good actor

James seems like every Michael Keaton movie

Lmao fr

Basically every role he plays

Loveable in the first 30 min. After that I hated bro😂

Yes, but do it the right way, not the way he did it.

By destroying other people's life?

@@kan1039 well I don't think he destroyed the lives of the brothers, they had money but I'm sure his wife didn't enjoy it when he left her for the other married woman.

@@kbanghart money is not everything the older brother had diabety, he was sick he loved his restaurant. He felt he was idiot by helping Ray. These things change people forever.

@@kan1039 that's true. People don't realize what others go through. It's too bad they couldn't get Ray to give them the 1%.

I'm pretty sure their quality of food was far better than the franchised version. McDonald's is garbage

@@OfficialGangSets actually Kroc made sure that every franchisee follow the brothers standards of food quality, after he died things well ya know, turn very bad, but I have to say that not all McDonald's establishments are bad.

@@nomado.3855 truth

😂😂😂

I'm actually more mad about his marriage

*The Golden Arches*

John Smith right on... don’t get me Wrong I get why he did it but he pretty much sandbagged them too

@@dylanreynolds62 he was smart.

He fucked it all up

Crosses , flags ..... ARCHES

Exactly, I dont get why the people think of the Brothers as the victims, Kroc deserved it all. The brothers don't even deserve the 16 mil(in today's money) cuz their store was never going to make that much and they had no interest in expanding, they got even that much bcoz of Ray. He was not the villian

@@nerd6414 lol haha

truth

@@nerd6414 not only that, but investing in '61 private equity would have made them 100x in 20 years. I still have Disney shares that I bought with my communion money in 1990. Split multiple times.

Nah they would’ve grew and he took advantage of that.

Says it without a comma. just “Bye Dick!”

🍆dick

Yeah bcuz they were dumbasses

@@marcoAKAjoe ikr they should’ve listened and thought about it

@@PradaYouJosh they kept getting lied to and wasn’t fully aware

Well, kroc work hard for his business, they just create problems for him.

@@bricksblood200 Kroc overstepped his boundaries and contract in a business that he didn’t help found. The business was doing well without him.

I believe you but 1 can you link where you found this? And 2 it still sucks to lose what you build from the ground up

@@soulsemblance3163 except the brothers didn't build the mcdonalds corporation from the ground up. Ray did. He did all the leg work. The brothers just wanted to manage their san bernadino location and collect royalty checks. Without ray there never would have been a international multi-billion dollar Mcdonalds corporation.

@@ken52682 Either way, he stole it, ruined it.

@@ken52682 multi billions the McDonald brothers NEVER OWNED!!

@Brandon : Too busy villifying a businessman for being a businessman.

way less than that

It was supposed to be more

To be honest, they could've just bought a lot of McDonald's shares back then with that million dollars... Maybe they were not that confident with what their own company could do in the future...

@@iliaadamanthark8336 Exactly! They could have reinvested $100,000 in stock, and had a huge revenue stream. 1 million in 1961 is equivalent to 8 million today. The McDonalds brothers still died very wealthy.

Now adjusted for inflation they were paid .00000000986% (Im a business major and I totally made that up cause who gives a fuck?)

They could've avoided that heartbreak by not going into business with him in the first place. Don't think they didn't know what type of man they were dealing with in Ray. Ray saw dollar signs and wanted growth while they didn't. Can't feel too much sympathy for them.

It was inevitable. If not for Crock, someone else would have quickly realized the potential and copied their design...Except for claiming to be the "founder", (for which, they were eventually given credit), it was the best deal they could have received @ the time...The movie was also wrong about the royalties; They had a choice, and took the cash over the royalties; Then, bought stock in the company. All in all, they made out better than Crock, since all his shares were sold after his death, and the proceeds donated to charity.

i mean the brothers had a choice, they did it. im sure they were happy with the decision in real life

he is just the better businessman, you have to be ruthless to be successful

He just had the better vision and sensed more opportunities than the McDonald brothers. But yea....he was ruthless, pretty much a villain

Ray was pure sociopath, not even just having the traits. All his actions. Just running on narcissistic injury.

All Ray Kroc did was make the McDonald's brothers rich. Why do so many idiots act like they got a bad deal? They did not have to sell out. They were getting royalties from every dollar in sales at every restaurant.

@@Seahawkfan1108 The bastard made the Mcdonalds brothers rich! How dare he.

They weren’t nice. If they were nice, the one guy would not have wanted him to burn into flames. They were weak. There’s a difference between nice and weak. Never confuse kindness with weakness

they didn't. they got more money than they ever made on their own.

@@jotarokujo5132 I'm talking about their 1% cut of future profits.

They instantly became millionaires. Multi millionaires in today’s dollars. The movie portrayed the brothers as being coerced to sell, but in actuality, they had no desire to push the brand higher and just wanted to get their money. And they became rich off of it.

@@Narodov1 yes, Kroc made them more money than they ever could have on their own. Swindled, lmao

That and nobody forced them to accept that deal

@@amitkenan3878 oh stfu

Exactly

@@amitkenan3878 actually we bring that on ourselves its a person's choice to order a big Mac large fries and drink with nuggets and a mcflurry really you could order a mcdouble small fry and drink and be happy 😊

@@amitkenan3878 I dont understand how people can look them selves in the mirror and still think like this. Do restaurants force people to eat? Do restaurants prohibit people from exercising? Honestly, how can you honorably blame a restaurant for the state of people’s bodies? Its not the McDonald’s fault that people are choosing to eat there. You and you alone are responsible for your own body and health. By the way, a meal at McDonalds costs roughly $6-8 dollars. While a nice organic salad and a gallon of water costs less than $6 after tax at my local grocery store. So people clearly have the choice to eat healthier and save a little money while doing so.

RAY KROC DIDN’T INVENT the franchise concept. The brothers did. If he had not joined, we’d still have a national chain of McDonalds but on a smaller scale (like Wendys or Arbys or In N Out) .

​@@electrictroy2010the brothers didn't even want that, they legit only wanted one location

@@nicoledickson6099 and they got one location along with one million dollars which was a tremendous amount of money back then. That’s a lot for being complacent. In all honesty the brothers are lucky that he didn’t just create his worn franchise. They never had any ambition to grow

@@S0L12D3 "ambition to grow" dude, u obviously didnt watch the movie

And they very well could've bought the IPO of McDonalds with those checks and be billionaires today with $50m per year in dividend income. But they didn't because they never had the ability to see the big picture. The truth is, the McDonald brothers got exactly the amount of worth they brought to the table and it's probably more than they ever would have got if Ray never entered the picture.

@@amunra4015 false. Kroc wasn't nice guy. He stole their 1% just because he was a narcissist. In the movie they all knew the brothers didn't have money, so couldn't afford a good lawyer. He took advantage of them. He also tried to oppose a minimum wage bill, and supported Nixon. But he was a drunk, and heart failure caught up to him... and cheated on his wife . Karma?? And I love how his wife gave tons of money away to causes like NPR (that Trump supporters hate). Oh, and he originally didn't want McDonald's and urban areas so people wouldn't break into the stores... In other words of course people with less money, generally people of color. Oh yeah and sure, make the food cheap to eat, give you obesity but that's ok.

@@kbanghart How is it false? $1 million dollars bought at the $22.50 IPO price would've got them 44,444 shares. After stock splits, today they'd had 32,400,000 shares. Stock is $241 today. Thats $7.8 billion dollars. Annual dividend is $5.52 which means they'd get $178 million per year in dividends today. So yeah, the only way its false is that i UNDERESTIMATED, the dividend income.

@@amunra4015 my comment about it being false is that I disagree with what you said about their amount of worth. In the movie, and I'm going just on that for now because I haven't done any other research, but in the movie Kroc offers them a blank check of sorts, asks them what they will take. He then agrees verbally to 1%. Of course, in the meeting with the lawyers, he says no, and all parties knew (discussed earlier) that the brothers don't have the $ to fight. Now, IRL *if* Kroc said hey, invest it, and in fact I've heard they did invest some, great. But the fact remains that he went back on his word. Plus, I'm also taking into account the fact that he cheated and left his wife for someone else who was also married. These combined factors put him pretty low in my view. However, I love the fact that after he died, his wife gave away the tons of money to different causes, one of them npr.

@@kbanghart ​ - Wow. You sound like a terribly bitter and hate filled person. The amount of hate-filled dog whistling in your comment is astonishing. 1) Misusing the word narcissist. Go look up the clinical definition of "narcissist" because it doesn't mean "selfish person I don't like". Misusing negative labels to stereotype someone is a classic tactic of a bigot. 2) Oppose minimum wage bill. (Any source of evidence?) Classic socialist / communist anti cooperate dog whistling. 3) Using your personal hatred of Nixon to smear Kroc by association. Again showing your bigotry and bias. 4) Drunk? more "evil" person dog whistling. 5) Heart failure - you are gleeful about another person's poor health? Implying he deserved to have poor health? Wow. 6) Cheating on his wife. You imply he's an evil person for cheating, but know NOTHING of the circumstances. Classic labeling and bigotry. Strangely dog-whistling to the religious crowd here? 7) Gleefully rejoicing in his money being donated to the NPR, without even knowing if Kroc supported it or not. 8) Wild attack at Trump supporters for some reason. Now, dog-whistling for the left-side. Again showing your labelling, hatred, and bigotry. (as well as your ability to be brainwashed by media). 9)You try to label him a racist next, by taking a VERY long stretch; but don't know what the definition of "Urban" is. Classic extreme left dog-whistling. 10) Then the final cherry on top is trying to blame HIM for the Obesity Epidemic, even though ANYONE who would have brought McDonalds into prevalence would have inadvertently done the same thing. (Also ignoring EVERY American's freedom of choice. Suddenly Kroc has taken away everyone's personal agency?) You need to take a LONG look in the mirror. That was a LOT of bitter vitriol and red flags showing how programmed and bigoted you are. In fact; you are so idiotically programmed that you are subconsciously littering your comments with an astonishing amount ideological dog whistles. You are a literal talking head robot. No freedom of thought demonstrated at all. You are not in a healthy state of mind or heart. In fact, I suggest you are as bad, or worse, off as you feel Kroc was. Wake up and get help.

Not only is he done with the conversation, he’s done with the brothers. He’s taken what he wanted from them and they’ve got no recourse. It’s over. Such a great performance by Keaton

@Javier Navarro I'm specifically talking about "handshake for royalty", which Kroc did not keep his end of the bargain, obviously.

It never happened in real life. Legally, if a handshake deal is witnessed by the attorneys, it counts the same as if it were in writing. But for the purpose of the movie, I guess the McDonald's brothers were burned out and just wanted closure and be rid of Kroc for good.

@@cybernautadventurer it DID happen in real life. Geez look it up

djdjdj

@@cybernautadventurer No, it doesn't. The devil's in the detail, esp when it concerns business deals. You need to be able to present it in the court. The lawyers witnessing the handshake doesn't mean anything, even in the real world, because finer detail must and will be discussed, and there would be disagreements. And that opens up just about everything.

I mean Kross Mcdonalds and the Mcdonalds Brothers Mcdonalds aren't really the same thing at all.

This movie is close to 100% bullshit fyi

Dick bought a lot of the stocks soons it went public.. he said that's all he was waiting for soon as they sold it

alseyni dansokho Source?

I looked it up and they went public in 1965, with over 700 franchises. I don’t know if the bother bought any stock...

Good point. They knew what Kroc could do. They seem too conservative for something like that. More like CD type guys.

@@cryptoal8577 source?

He was THE BATMAN!

There is an irony to this. He took the name....but he made it immortal. They couldn't have done that on their own. Everyone on the planet has heard of McDonald's, even the Amish. No one knows who Kroc was.

RAY KROC DIDN’T INVENT the franchise concept. The brothers did. If he had not joined, we’d still have a national chain of McDonalds but on a smaller scale (like Wendys or Arbys or In N Out) .

​@@electrictroy2010 No they wouldn't they would have only had up to 3 or 4 chain restaurants in the state, let alone across the country

​@@electrictroy2010 Also speaking in all caps doesn't make your point more valid

Just like TSLA

@@Youraveragegamer_97 before they met Kroc they had 20 franchises restaurants and 8 of there own so yeah they where going to expand

beyond underrated comment hahahaha this is gold

Out of spiting you, I will be eating at McDonalds from now on.

They took their yogurt parfaits and salads off the menu, worst decision to date. Most millennials know how unhealthy it is and will eventually stop eating there. They've noticed a slowdown in sales, also due to impersonal computer cashiers.

@@airplanegod I'll be eating McDonalds on my own accord, I don't do things based on what others do, I go to McDonalds cause I'm hungry and I live in a corporate fucking hellscape.

@@shamusbob7969 hell yes

Haven't been to a McDonald's in 2 years, haven't regretted It.

However, there's a silver lining to this story. I don't know Maurice, but Richard has never held a grudge against Ray Kroc. In fact, when he said his name he always had a gentle tone.

McDonalds lures you with the subliminal saex. Their logo is upside down TTies. The "arches". Then they sell the Big Mac, Quarter Pounder, Mcnuggets. And then you have Taco Bell. Guess who has tacos. Once again a female bodypart. And Burger King with the whopper. That is all slang for the pecker. Big Mac, Quarter Pounder, Whopper. And also you In and out. What goes in and out? Also Shake Shack. What is a shake shack, a motel room

@cowsmuggler1646 and then we have Starbucks with it's logo... Jamba Juice with it's "666" logo, and the list goes on.

the brothers were making $100,000 profit cash per year from 1949 to 1954 when they first met ray. ray was the deseprate one not the brothers. the brothers had it all. lived in a nice house, had money, drove nice cars.

Some things maybe aren't meant to be global, look what it does to the people who made/created it?

true potential is making America obese?

@@ctwishkeyprn2039 Made them infinitely rich?

The point is, the brothers never cared about business. Exactly why the franchise thing couldnt succeed under them, they were more interested in quality.. The fact that they were ripped off is unfortunate, but that's what it is..

They were retired in reality. The restaurant was owned by some former employees who they wanted to see do well, but I'm sure it wasn't quite the same as them owning it and working for it still.

It is also why anybody with some money to invest can get a franchise of literally thousands of different businesses that already have a successful product and marketing plan. A franchise is usually a turnkey business opportunity, but the downside is that you have to pay franchise fees.

@@texaswunderkind franchisees existed before McDonald’s.

So how about we consumers bring Mc on its knees and let Kroc turn In his grave. They deserve it.

Squandered what? The brothers were fine. Did you know that plenty of other fast food places also started running from mcdonald's, because of the success? So someone would have been successful even if it wasn't Kroc.

No! No it isn't! Inflation isn't an exact science! That isn't how that works, 2 million dollars was 2 million dollars! Period!

Actually inflation is an exact science.

Money gives you power and power makes who u really are

He was literally trying to help the bros in the movie and even asked for a higher cut bc he couldn’t afford his house and other stuff. So bc of the stubbornness of the bros Ray literally had to do what was best for him which was to buy them out at the end

@Jesse A what you saying is true the brother could never come to a common ground with Ray.But at end of the day no one can make us be something we're not either you is or you ain't

@@pauljorge5089 Yea the brother should have gave him a raise after seeing him been a great asset expand their business, That's was wrong but Ray did a lot of wrong too plus he agreed to give them royalties which they never received

So they didn’t have 1.35 million dollar check? I don’t think they finished last.

You don’t know anything.

@@stanknugget Enlighten me

@@SidechainStudios Case and point: You need enlightenment. You don’t know anything.

That’s sad

@@collinhoward651 wooosh

Gran Torino was set in Detroit

Mac actually became an assassin. He regrets it everyday.

They didn't need to work, though; that was their choice .... in 1961, if someone handed you 1.3 million dollars, you were set for life

Corrupt

wtf kroc didn't steal the restaurant. ray wanted the brothers gone and the brothers said sure $3 million dollars cash. this was a lot of money in 1961. ray had to spend $18 million over the interest he had to pay on his loans for that $3 million in cash for hte buyout.

It ain't, dumbass. That isn't how that works, 1 million then is an equivalent of 1.million now!

how much revenue did their original store bring in? seemed pretty successful

@@metsrus They were nowhere near as successful. I read they were making about 40k a year with their restaurant, thanks to Kroc they had an equivalent to 10 million dollars. The movie also fails to show that Dick had no interested in traveling all over the country to open new franchises the brothers wanted to be bought out

@@khabbad seemed like Kroc did them a favor, but the movie had to create some fake ass drama

@khabbad No! It is an equivalent of 2 million dollars a piece, dumbass.

It wasn't Hollywood, dumbass! It's that damn Piano Player! Ugh!😫

Who was betrayed?

They still became very wealthy out of this deal.

@@rs72098 And they honestly didn't even deserve that much. They were happy in their tiny place in the world, and their restaurant would have never ever made 16m in today's money, they only got that much because of Ray

@@nerd6414 nah. Kroc was scumbag, they should have gotten their 100 million as promised. McDonald's should pay them.

@@nerd6414 ps. I always knew that McDonald's is company based on scums, shady deals ja it crappy all the way. You can even taste it In their food. There is no soul and no heart In it.

Hey, they're the ones that accepted the deal 🤷‍♂️

I am officially retired as of September 2023. I am serving as a City Commissioner in our town of Alachua, and serving on the board of directors of our local Ronald McDonald House in Gainesville. I don't know if you have seen this podcast episode, but it was fun to do it. It is the first time that I have discussed these stories publicly, as I always felt it would be a distraction to my business. No such worries in retirement. Ed Potts ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-k-wBw3qBLYw.html&feature=shared

What's its name??

@@fullydetta5859 The Founder