Business · 2
What kind of business arrangement did Ray Kroc secure with the McDonald brothers in 1954, rather than buying their restaurant outright?
Answer
A franchising agreement
Kroc did not acquire the McDonald brothers' original restaurant itself; instead he negotiated the right to franchise their operating system, which let him open McDonald's locations nationwide.
💡 Did you know?
McDonald's founder Ray Kroc was 52 years old, working as a milkshake machine salesman, when he discovered the McDonald brothers' restaurant and bought the franchise rights.
Other options people guess
- A silent equity partnership
- A full outright purchase of the restaurant
- An equipment supply contract only
Topics
- mcdonalds
- franchising
- business-history
- entrepreneurship
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