Chapter 8, The Buyout Summary and Analysis

Chapter 8 concerns Kroc's attempt to buy the McDonald's name from the McDonald brothers. Dick and Mac are determined to benefit from their name recognition. However, they ask for 2.7 million, which is too much in Kroc's mind. McDonald's has trouble getting the money together and Kroc very much wants to buy out the name.

Kroc wants to buy out the McDonald brothers because his desire to experiment produces numerous contract violations with the initial licensing agreement. Further, in 1960, Kroc's contract is about to expire. So contract renegotiation have to take place. Frank Cotter, the lawyer for the McDonald's, hates Kroc and Kroc hates him back, so negotiations are difficult. Kroc wins with only minor concessions. However, Kroc's negotiating destroys his relationship with the McDonald brothers.

Kroc comes to see the $2.7 million price tag as worthwhile but the McDonald...