Harry J. Sonneborn
Person
Born
Franchising as property. Sonneborn, McDonald's first president, saw that franchise fees alone barely paid, and from the late 1950s had the company lease or buy the land under restaurants and sublet it to franchisees at a mark-up. Rent became the core of McDonald's income and gave it control over its operators. He is often quoted as saying McDonald's was in the real estate business rather than the hamburger business.
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