Franchising contracts in fashion supply chain operations: models, practices, and real case study

Abstract

Franchising, defined as a special operations model in the manufacturer-retailer supply chain, is playing an increasingly important role in the fashion industry nowadays. However, regardless of the popularity of franchising in practice, the literature on franchising operations is still relatively limited. Motivated by this research gap, we conduct a comprehensive review on the literature discussing the application of franchising contracts in the fashion industry. In the meantime, the case of Guangzhou Jinyu Garments Co., Ltd. (GJG) is also examined. Based on the combination of both the literature review and the case study, managerial insights are generated concerning how the franchising contracts are implemented in the fashion industry. Besides, key factors influencing the implementation of franchising contracts in the fashion industry are identified, referring to the channel structure, channel operations and channel interaction. The future research opportunities are also discussed.