Study On The Franchise Alliance Between Fragrant Island Korean Stone Barbecue And American Happy Harry

The objective of a transfer of franchise as an intellectual property is to increase the value of a brand. A brand is the basis of franchise. This research paper, which studies franchise alliance between the Fragrant Island Korean Stone Barbecue and American Happy Harry, intents to apply the theory of brand alliance to the hospitality industry, address the issue of brand in the franchise alliance of the two, and provide recommendations for a sound model of franchise alliance.The partners of a branch franchise alliance can share resources, complement each other, make and share profits, and therefore achieve a result that is bigger than the sum of the two. The topic of the paper arises from these questions:if the theory of brand alliance applies to the hospitality industry, and how franchise alliance operates in this industry, where brand is faced with challenges. This paper chooses two franchises, Fragrant Island Korean Stone Barbecue and American Happy Harry, as the object of study, and analyzes their scope of operation, history of development, brand culture. It believes that the two complement each other and highly consistent in brand reputation. Studies from other countries have found that complement of product and product and similar reputation is an important factor for the success of brand franchise alliance. However, there are few such studies in China. Therefore, through experiment designing and empirical hypothesis testing,the paper prove that parallel reputation, complement and assets prior impact the result of the alliance. based on this hypothesis, the paper takes into consideration of the similarity of the operating system, consumers'recognition of Fragrant Island Korean Stone Barbecue and American cultures, their inclination of seeking convenience, and the impact of alliance on the cost of the alliance. The paper holds that the alliance between the Fragrant Island Korean Stone Barbecue and American Happy Harry is feasible, and that the assets of both brands will get increased, and their franchise will each get further developed.The alliance between the two partners is a means, not the objective of each franchise. Therefore, what follows the alliance is what is called practical operation. Based on the history of development of the two brands, this paper designs the operation with reference to the successful franchise operation of McDonald's and Kentucky Fried Chicken. It also provides suggestions and recommendations regarding the brand development and the risks in the process.The study proves that it is possible to apply brand alliance in the hospitality industry. The suggestions and recommendations are important for the hospitality industry to consider in its attempt to build franchise alliance.