McDonald's Franchise Overview

About McDonald's

McDonald’s was founded in 1940 by Richard and Maurice McDonald in San Bernardino, California, as a small drive-in restaurant. In 1948, they introduced the “Speedee Service System,” an innovative method of preparing food quickly and efficiently. This system emphasized a limited menu and standardized food production, which significantly reduced wait times and operational costs. The restaurant’s streamlined approach to food service became a foundational model for the modern fast-food industry.

In 1954, milkshake machine salesman Ray Kroc visited the McDonald brothers’ restaurant and recognized its potential for expansion. He entered into an agreement to franchise the concept and established McDonald’s Corporation in 1955, opening the first franchised McDonald’s restaurant in Des Plaines, Illinois. Kroc’s approach to franchising differed from traditional methods, as he maintained control over the land through a separate real estate company. This allowed for centralized oversight and ensured consistency across franchise locations.

By 1961, Kroc had purchased the company from the McDonald brothers for $2.7 million. Under his leadership, McDonald’s expanded rapidly across the United States and internationally, establishing itself as a global presence. Key milestones included the introduction of Ronald McDonald in 1963, the Big Mac in 1968, and the Happy Meal in 1979. The company’s growth and influence marked a significant chapter in the history of franchising and the development of fast-food culture worldwide.