Ray Kroc

Years later, he and Ray would clash so badly that one of them would have to go.

But in 1955, there were just two guys in a tiny office trying to build something new.

The idea that changed everything came from Harry.

McDonald's was selling franchises, the right to use the name and the system.

But franchises were finding their own locations, leasing their own buildings.

So Kroc collected $950 per license and then 1.9% of sales.

And he had to give half a percent to the brothers.

It was enough to survive on, but it wasn't quite enough to build an empire on.

So Harry's solution to this was they could control the real estate.

They would find the land, negotiate a lease with the landlord, build the restaurant, then sublease it to the franchisee.

The franchise would pay rent on top of the service fee, a monthly minimum or percentage of sales, whichever was greater.

Kroc was skeptical.

Why would landlords go along with this?

And Harry studied real estate law.

He hired consultants.

He learned the mechanics of commercial leasing.

And then he went out and convinced property owners one by one.

Landlords with vacant land were happy to earn something from it.

McDonald's now had real income, not just royalties, but now stable rent.

Cash that kept coming even when the store had a bad month.