Ray Kroc bought out Richard and Maurice McDonald in 1961.
Kroc had become the McDonald brothers' national franchising agent after visiting their San Bernardino restaurant in 1954. His organization expanded the brand through standardized restaurants, operating procedures, and franchise agreements. In 1961, Kroc purchased the brothers' business rights for about $2.7 million, according to widely cited accounts.
The purchase gave Kroc control of the McDonald's name and system, while the brothers retained their original San Bernardino restaurant, which they renamed The Big M. That restaurant later closed after a nearby McDonald's competed with it.
A common mix-up is calling Kroc the sole creator of McDonald's. The brothers developed the fast-service production system and opened the original restaurant; Kroc transformed their concept into a large-scale franchise company. The transaction is therefore a key turning point in McDonald's branding and corporate history.