
The Founder
In 1954, struggling Prince Castle salesman Ray Kroc travels to San Bernardino, CA to meet Dick and Mac McDonald at their eponymous restaurant after the brothers purchase eight of his milkshake machines. Kroc lauds the brothers' success over dinner, where Mac and Dick explain the restaurant's origins and success following a complete redesign of the store in 1948, eliminating unnecessary overhead and reducing costs. Eager to cash in, Kroc quickly presses the brothers to expand franchising. After an initial refusal, the brothers agree to a business deal under stringent contract terms and a lengthy approval process for potential changes.
Kroc breaks ground in Des Plaines, putting up his home as collateral. Hungry for more growth, Kroc pursues wealthy local connections for investment in franchising and recruits Fred L. Turner as his business partner. After early struggles with franchise operators not being hands-on, which doomed the brothers' previous franchise attempts, Ray hits on the idea of the model of a local operator: putting the franchisee directly into the workspace, and working alongside their staff. Kroc sees rapid gains and continues to expand, traveling to St. Paul to oversee the first opening in the Twin Cities. There, Kroc meets Rollie Smith, and his wife, Joan, who are interested in franchising; Kroc immediately becomes infatuated with Joan. At the same time, Kroc stresses against rising pressure from financial operating costs and falls behind on his payments. Kroc is unsuccessful at renegotiating his contract with the McDonald brothers, and, when his bank calls his home, Kroc's wife, Ethel, discovers her husband put the house up as collateral without her knowledge. Kroc later files for divorce from Ethel.
Kroc visits his bank for help with his lease terms and is approached by former Tastee-Freez Finance VP Harry Sonneborn, who offers to review Kroc's books. Sonneborn explains to Ray that the business operator model will fail under the contract terms restricting him. Sonneborn guides Kroc toward evolving McDonald's into a real-estate model with financial investor backing. In 1955, Franchise Realty Corporation was incorporated and begins an aggressive expansion of the McDonald's franchise. When the brothers are informed of the new company and Kroc's intent to buy the land, Dick and Mac are taken aback, but are powerless against the power Kroc now has. Emboldened, Kroc approaches his attorney for help getting out of his contract and further enacts changes to the franchises without Dick and Mac's approval, including the introduction of a powdered milkshake mix to bring down operating costs. When Kroc officially rebrands Franchise Realty Corporation as the McDonald's Corporation, Mac collapses from diabetic shock and is hospitalized. Kroc visits the brothers at the hospital and offers them a blank check to buy them out.
The brothers agree to sell for $2.7 million, the rights to the San Bernardino location, and 1% of future profits. Kroc agrees to their terms except for future profits and offers to carry out these under a handshake agreement. The brothers reluctantly agree, and Kroc becomes the sole owner of the McDonald's Corporation. Dick asks Kroc why the latter didn't just take the idea and run with it. Kroc admits he always wanted the restaurant for himself because of the brothers' last name, with Kroc lamenting his own Slavic last name isn't "American" enough, but that McDonald's represents American values. The film ends with the brothers being forced to change the name of their original location, and Kroc begins construction of a new McDonald's immediately across the street in San Bernardino. Kroc, now married to Joan, prepares for a public speech that California Governor Ronald Reagan will attend, heavily plagiarizing a speech he listened to earlier in the film, arguing his success came from persistence.
An epilogue reveals several facts about the company: Kroc's secretary, June Martino, became a part owner in the McDonald's Corporation. Sonneborn was made president and CEO but quit after falling out with Kroc a few years later, never speaking of McDonald's again for the rest of his life. Turner succeeded Kroc as senior chairman of the company, expanding the company worldwide. Kroc and Joan remained married until Kroc's death in 1984. Kroc's San Bernandino McDonald's drove the McDonald brothers' original restaurant out of business in a few years. Kroc did not honor his handshake deal – the McDonald brothers were never paid their royalties, which would eventually have been over $100 million a year. McDonald's feeds about 1% of the world's population every day.
