The franchiser took 1.9 percent of the gross sales, of which the McDonald brothers got 0.5 percent. Talk about a measly %. They didn't even seem that desperate to franchise their system as well when watching the movie. They were happy with just that 1 restaurant they managed themselves even though their stated goal was to make $1m by the age 50. Got muscled out.
shareWhy do you use the word "duped"? Or "muscled out"?
These are grown men experienced in the restaurant business. I agree why hire Ray Kroc to mass expand if they are only getting .5%? At least get 1%. If they demanded 1% who would prevent that? Who forced them to get only .5%?
It also brings into question the veracity of the 1% royalty when they sold their interest for $2.7M. Why after selling their interest in the business would their royalty double? I don't believe that.
Note that the way the film depicts Ray Kroc signing the contract with the Brothers they along with their attorneys set the terms. They set the terms, put it in writing and Kroc signed it.
Nothing that Kroc pushed onto them. Kroc had no power to force or coerce them into anything.