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Fries, Burgers, and Business Bullsh*t: What Went Wrong for the McDonald Brothers

A Fun (But Brutal) Breakdown of How Small Business Owners Get Screwed

🧙️ TODAY'S FLIGHT PATH

  • Here’s how they lost their empire (and how you can avoid the same mistakes):

    🍔 The Big Mac Mistake – Thinking a great product is enough to win.
    📈 The Franchise Fiasco – Letting the wrong person control their growth.
    🏡 The Land Grab Blunder – Missing the real money in the business.
    ✍️ The Signature Screwjob – Trusting a handshake deal instead of a contract.

Imagine This:

You build an amazing business, perfect every system, and the customers love you. And then……….BAM! Some slick salesman swoops in and walks away with everything.

That’s exactly what happened to the McDonald brothers. And if you own a business, their mistakes are a masterclass in what not to do.

Let’s be real: I see small business owners repeat these same mistakes all the time. Maybe not on a billion-dollar scale, but I’ve watched people get squeezed out of their own companies, locked out of their own cash flow, and outmaneuvered by folks who don’t have half their talent. It’s brutal. And I dare say it's preventable.

Let’s break down how two burger geniuses got outmaneuvered by a guy who didn’t even know how to flip a patty. These are my observations from the 2016 movie The Founder.

 🍔 1. The Big Mac Mistake: Thinking a Great Product Is Enough

🛑 Lesson: A great product won’t save you if you don’t own the system.

The McDonald brothers invented the "Speedee Service System, " the first-ever fast-food model. Their burgers were better, faster, and more efficient than anyone else’s. Remember, this was the 1940’s.

But here’s the kicker: They thought having the best product meant they’d win. (Spoiler: It doesn’t.)

Reality check: Customers buy the product. Investors buy the system.

 🔥 Business Owner Takeaway: If you don’t own your system, your supply chain, or your distribution, someone else will, and they’ll eat your lunch.

A great product gets you customers, but a great system gets you control. It’s the difference between being a skilled craftsman and a business owner. The McDonald brothers were the former, and Ray Kroc was the latter.

And look, I get it. When you’ve built something you’re proud of, it’s easy to believe that is what makes you successful. I’ve fallen into that trap myself. But business isn’t just about what you make. It’s about how you protect and scale it. If you don’t have the infrastructure to support growth, someone else will come along and build it for you, and suddenly, you’re working for them.

 📈2. The Franchise Fiasco: Trusting the Wrong Guy to Scale

🛑 Lesson: Don’t put your business in the hands of someone who doesn’t share your vision or values.

The McDonald brothers let Ray Kroc franchise their model. At the time, he was just a guy selling milkshake machines.

They trusted him without full control, and before they knew it, he was expanding their brand while they were left in California.

Reality check: He didn’t just scale the business—he scaled them out of it.

🔥 Business Owner Takeaway: If you don’t control your growth, someone else will. And that “partner” might not have your best interests at heart.

A bad partnership doesn’t always look like a bad partnership in the beginning. Kroc came in as a “helper,” but he had bigger ambitions. The McDonald brothers wanted a handful of restaurants. Kroc wanted an empire. And when goals don’t align, someone will get pushed out.

I’ve seen this happen with business owners who bring in an “expert” to scale their company, only to lose control. Growth is essential, but controlled growth is everything. If you bring in someone to help, ensure you’re still holding the steering wheel.

 🏡 3. The Land Grab Blunder: Not Owning the Real Money Maker

🛑 Lesson: If you don’t own your assets, you don’t own your business.

Ray Kroc realized something the McDonald brothers didn’t: McDonald’s wasn’t about selling burgers but owning real estate.

He stopped focusing on food and started buying the land under every franchise.

The McDonald brothers? They were still obsessed with making the best burger… while Kroc made the biggest business.

Reality check: The real empire wasn’t in the kitchen but …. in the property deeds.

🔥 Business Owner Takeaway: Where’s the real money in your business? If you’re only focusing on the product, you might miss the play that builds wealth.

Business isn’t just about what you sell. It’s about what you own. Do you own your client relationships? Your distribution channels? Your intellectual property? Your real estate? Ray Kroc played the long game. The McDonald brothers played the short one.

This one stings because I see so many business owners making the same mistake. They build a killer business but rent the land, borrow the tools, rely on a single supplier, or let a platform own their audience. You must consistently create an asset you can resell to grow a legacy. The second someone else decides to change the rules, you’re done. Control your assets, or someone else will.

 ✍️ 4. The Signature Screwjob: Handshake Deals Will Ruin You

🛑 Lesson: If it’s not in writing, it doesn’t exist.

The McDonald brothers agreed to sell McDonald’s to Ray Kroc, with a handshake deal to keep 1% of future sales. CYA!

Kroc never paid them a dime because… there was nothing in writing.

That 1% today? Worth over $100 million per year. (Ouch.)

Reality check: The business world isn’t built on “good faith.” It’s built on contracts.

🔥 Business Owner Takeaway: If it’s not legally protected, it’s up for grabs. Don’t just “trust” people—protect yourself.

Legal protections might seem like a hassle—until you don’t have them. A simple contract could have made the McDonald brothers generationally wealthy. Instead, they walked away with a one-time payout while Ray Kroc built an empire on their backs. A lawyer is cheaper than losing everything.

I’ve heard business owners say, “Oh, we don’t need a contract …. we trust each other.” Yeah? So did the McDonald brothers. And they got steamrolled. No matter how much you like or trust someone, always put it in writing. Future you will thank present you. Or something like that.

 🤜 Closing Punch: Don’t Be the McDonald Brothers

The McDonald brothers were brilliant operators but terrible business owners. They perfected the burger business—but they didn’t own it.

Ray Kroc didn’t invent McDonald’s—he outmaneuvered the guys who did.

Final takeaway: You can be the best at what you do, but if you don’t control ownership, growth, and assets, someone else will.

Oh, and if you were curious about how much the McDonald brothers lost. Around $2.5 billion is based on a 1% royalty from 1961.

🤔 REFLECT: Your Turn

Am I focused on the product, or the bigger picture?

  • Am I so obsessed with making the best product or service that I’m ignoring the business model that makes it sustainable and scalable?

Do I have agreements in writing, or am I running on “trust”?

  • Are my key business agreements legally locked down, or am I setting myself up for a McDonald brothers-style screwjob by relying on handshakes and goodwill?

Where’s the real money in my business?

  • Am I maximizing my revenue by owning assets like intellectual property, customer data, real estate, or supply chains—or am I leaving money on the table?

Share your story at [email protected].

Stay awesome, stay confident, and keep soaring higher!

— Cheering you on, Nick

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