- So to summarize... you have a minuscule revenue stream. No cash reserves. And an albatross of a contract that requires you to go through a slow approval process to enact changes if they're approved at all. Which they never are. - Am I missing anything? - That about sums it up. - Tell me about the land. - The... land? - The land, the buildings, how that whole aspect of it works. - Oh, pretty simple really. Franchisee finds a piece of land he likes. Gets a lease, usually 20 years. Takes out a construction loan, throws up a building and off he goes. - So the operator selects the site. - Yeah. - He picks the property? - Right. - You provide the training, the system, the operational know-how, and he's responsible for the rest? - Is there a problem? - A big one. You don't seem to realize what business you're in. You're not in the burger business. You're in the real estate business. You don't build an empire off a 1.4 percent cut of a 15-cent hamburger. You build it by owning the land upon which that burger is cooked. What you ought to be doing is buying up plots of land then turning around and leasing said plots to franchisees who as a condition of their deal, should be permitted to lease from you and you alone. This will provide you with two things. One, a steady, up-front revenue stream. Money flows in before the first stake is in the ground. Two, greater capital for expansion. Which in turn fuels further land acquisition, which in turn fuels further expansion and so on and so on. Land.
The Founder
1m34s
- McDonald's. I just found a way to save you, me, and all the owner-operators literally hundreds of dollars a year in electrical costs. - And what would that be? - Two words, powdered milkshake. I'm telling you I came across a remarkable product called Inst-A-Mix. Like I say, it's a powdered milkshake. It's a fraction of the cost of ice cream and requires no refrigeration. - Ray... - I tell ya, I tried it myself, it tastes just like the real thing. It's delicious. Comes in chocolate, comes in vanilla. Me, I'm a vanilla man. - Ray, we have no interest in a milkshake that contains no milk. Why don't we add sawdust to the hamburgers while we're at it? Frozen French fries! - You don't want to save a bundle? - Not like that. - We're talking about the same great taste. Same great taste while boosting the bottom line. - It's called a milkshake, Ray! Real milk, now and forever! - I understand. I'm just asking you to extend my line. - Until you build more equity in your home or pay down the loan, there's nothing I can do. - My business is booming. - Unfortunately, that's immaterial. - Well, I've got 13 locations in nine states. - It's a home-equity loan. - Then give me a business loan. - These thirteen locations, you own them? - Me personally? - It's your business, correct? - You own it? - I'm the head of franchising. I'm the one behind this growth. Well, that's all well and good, but you need assets.
The Founder
1m14s
- ♪ Every time it rains ♪ ♪ It rains Pennies from heaven ♪ ♪ Don't you know? ♪ ♪ Each cloud contains Pennies from heaven ♪ - ♪ You'll find your fortune ♪ ♪ Fallin' all over town ♪ - Sounds pretty good. - ♪ Be sure that your umbrella ♪ ♪ is upside down ♪ ♪ Trade them for a package of ♪ - ♪ Sunshine and flowers ♪ ♪ If you want the things You love ♪ ♪ You must have showers ♪ ♪ So when you Hear it thunder... ♪ ♪ Don't run under a tree ♪ ♪ There'll be Pennies from heaven ♪ ♪ For you and me ♪ - Sorry.
The Founder
23.6s
- Mr. Kroc? - Can I help you? - No, but perhaps I can help you. Harry Sonneborn, nice to meet you. - No, thanks, we're very happy with our current supplier. - I'm not here to sell you ice cream. - What the hell do you want? - I caught a bit of your conversation back there, sounds like you're having financial troubles. - Why don't you mind your own business? - I'm a great admirer of your establishment.
The Founder
11.7s
- Thank you. - I eat lunch at your Waukegan location at least twice a week. Always a fantastic crowd. - Your point being... - Mr. Kroc, if you're not making money hand over fist, something is terribly wrong.
The Founder
20.8s
Costs a fraction of ice cream and there's no refrigeration necessary. - It contains powdered milk. Thickening agents and emulsifiers simulate the texture of ice cream. Tastes just like the real thing. - It's easy as pie to make. You put a packet into a glass of water and stir it. - I know maybe a tad blasphemous, what with your dairy background and all. - Personally, I think it's a marvelous idea.
The Founder
27.6s
- $12,400. - That's pretty good haul for month one. - Could be bigger. I hate to mix business with pleasure. - I don't. - But my expenses. - What about them? - Well, they're a bit higher than anticipated. One thing in particular, that dang walk-in. That bill is a real whopper. - I know, it's a problem, all that ice cream. - I don't want to overstep my bounds here. But, we may have found a solution. Or Joan did, actually.
The Founder
15.7s
- You don't say? - What if I told you there was a way all of your owner-operators can save literally hundreds of dollars a year in electrical costs? And reduce the time that it takes to make a milkshake, by half. - I'll bite.
The Founder
4.3s
What do you think? - I think I'm drinking a delicious vanilla milkshake.
The Founder
28.6s
Chocolate or vanilla? - Vanilla. Good things come to those who wait.
The Founder
2.4s
- I just came up to see how things are going?
The Founder
2s
- It's a powdered milkshake.
The Founder
2.1s
Illinois First Federal.
The Founder
2.7s
That's where it all started.
The Founder
6.4s
- Then that's ahh... that's probably what it is. - What are you buying?