There's nothing I can do 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 13 locations.

You want me personally?

It's your business, correct?

You own it.

I'm the head of franchising I'm the one behind this program.

That's all well and good, but you need assets Have you been to McDonald's because we've got three right here in the Chicagoland area you should come by and take a look No, I would love to give you a tour to get a better sense of what I'm talking about.

Thank you Mr. Kroc Can I help you?

No, but perhaps I can help you.

Harry Sonnenborn.

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 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's terribly wrong You grab the ledger, would you come on in the office?

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?

I'm about sums it up Tell me about the land 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.

It takes our construction loan Those help the 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 is responsible For the rest.

Mmm.

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 upfront revenue stream money flows in before the first stake is in the ground to greater capital for expansion Which in turn fuels further land acquisition which in turn feels further expansion and so on and so on Land That's where the money is and more than that control Control over the franchisee fail to uphold quality standards.

You cancel their lease Control Over dick and Mac end result.

You'll have the banks and the franchisees in the palm of your hand If I were to do this the brothers they Affectively would be yes So, what do you say Ray?