This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ool dropouts and drive-in owners who
lacked “proper” business credentials. Banks were not eager to invest in this new industry; nor was Wall Street. Dunkin’ Donuts and Kentucky
Fried Chicken were among the first chains to start selling franchises. But it was McDonald’s that perfected new franchising techniques,
increasing the chain’s size while maintaining strict control of its products.
Ray Kroc’s willingness to be patient, among other things, contributed to McDonald’s success. Other chains demanded a large fee up front,
sold off the rights to entire territories, and earned money by selling supplies directly to their franchises. Kroc wasn’t driven by greed; the
initial McDonald’s franchising fee was only $950. He seemed much more interested in making a sale than in working out financial details,
more eager to expand McDonald’s than to make a quick buck. Indeed, during the late 1950s, McDonald’s franchisees often earned more
money than the company’s founder.
After selling many of the first franchises to members...
View Full Document
- Spring '08