He eventually bought out the McDonald brothers.

In 1961, selling a hamburger stand for $2.7 million was an extremely lucrative transaction. Everyone is aware that McDonald's is not your normal hamburger joint. The inaugural franchise agreement between Ray Kroc and the McDonald brothers included a $950 franchise fee, a 1.9 percent service fee levied on food sales, a 0.5 percent royalty payment to the McDonald brothers, and a remaining 1.4 percent going to Kroc.

The McDonald brothers' reluctance to grow irritated Kroc, who in 1961 bought their stock in the company. An interesting fact about Ray Kroc is that he had franchised 228 McDonald's restaurants by 1960, generating $56 million annually. When Kroc bought the McDonald brothers out in 1961 for $2.7 million, he not only made himself wealthy but also became extremely wealthy. When Kroc learned that their first San Bernardino business had been left out, he was indignant. He opened a McDonald's just next door and coerced them into changing the name. Additionally, it is said that he broke a handshake deal to keep paying them royalties of 0.5%. However, neither brother ever mentioned it in a public setting. Ethel, Kroc's first wife, and he separated in the same year. In the settlement, he gave her practically everything but his interests in McDonald's.

Even more terrible are the royalties by today's standards, especially for the McDonald brothers' heirs. With McDonald's $61 billion in sales, according to a 2012 estimate, the McDonald brothers' royalty payment would have been $305 million had the 1961 buyout not taken place.