The Founder
99 Homes
Lease Logic
Ethics and Strategy
100

Q: What strategy gave Ray Kroc control over McDonald’s real estate? 

  1. Buying kitchen equipment for franchisees 

  1. Owning the land beneath each restaurant 

  1. Licensing the brand to third-party developers 

  1. Offering short-term leases with high turnover

2. Owning the land beneath each restaurant

100

Q: What role does Rick Carver play in property management? 

  1. Real estate investor 

  1. Mortgage broker 

  1. Foreclosure enforcer 

  1. Tenant advocate

3. Foreclosure enforcer

100

Q: What’s a CAM charge?

  1. A fee for camera surveillance
  2. A charge for Common Area Maintenance
  3. A penalty for late rent
  4. A tax on commercial advertising

2. A charge for Common Area Maintenance

100

Q: Why is transparency important in lease agreements?

  1. It helps tenants avoid reading the fine print
  2. It allows landlords to hide fees
  3. It builds trust and reduces disputes
  4. It makes contracts longer and harder to understand

3. It builds trust and reduces disputes  

200

Q: What ethical dilemma did Ray face with the original founders? 

  1. Refusing to pay royalties 

  1. Breaking a verbal agreement 

  1. Selling their recipes to competitors 

  1. Hiring their staff without consent

2. Breaking a verbal agreement

200

Q: What facility risk is shown during evictions?

  1. Overcrowding in shelters 

  1. Unsafe living conditions and code violations

  1. Increased property taxes 

  1. Lack of landscaping and curb appeal

2. Unsafe living conditions and code violations

200

Q: Why might a landlord prefer a long-term lease?

  1. To avoid tenant complaints
  2. To increase turnover and flexibility
  3. To bypass legal obligations
  4. To ensure stable income and reduce vacancy risk

4. To ensure stable income and reduce vacancy risk

200

Q: What’s an ethical alternative to eviction?

  1. Raise rent to force them out
  2. Change the locks without notice
  3. Report them to credit agencies
  4. Offer a payment plan or mediation

4. Offer a payment plan or mediation

300

Q: How did franchising affect facility management? 

  1. It created chaos in building standards 

  1. It allowed for customized store layouts 

  1. It enforced uniformity and operational control 

  1. It eliminated the need for maintenance contracts

3. It enforced uniformity and operational control

300

Q: What ethical conflict does Dennis face? 

  1. Choosing between selling drugs or stealing 

  1. Evicting families to save his own home

  1. Forging documents to get a loan 

  1. Sabotaging Rick Carver’s business

  1. Evicting families to save his own home

300

Q: What’s a net lease?

  1. A lease where the tenant pays rent plus operating costs
  2. A lease that nets the landlord zero profit
  3. A lease with fixed rent and no maintenance
  4. A lease with no rent, only utilities

1. A lease where the tenant pays rent plus operating costs

300

Q: What’s a risk of prioritizing profit over safety?

  1. Legal liability and reputational damage
  2. Higher tenant retention
  3. Increased rent collection
  4. Better marketing appeal

1. Legal liability and reputational damage  

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