In the movie, “The Founder,” Ray Kroc began selling franchises to his wealthy country club friends. He quickly discovered that their restaurants were dirty and weren’t following the company guidelines.
As passive investors, these franchisees had divided interests and didn’t see the importance of staying focused on the guidelines spelled out by the McDonald brothers.
Ray Kroc quickly pivoted to a different, more successful, strategy. He hired owner operators who learned the business personally and agreed to work at the business daily.
In business, keep alert for those who have divided interests. It can become costly.
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