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

Yue Chen, Sai Ho Chung, Shu Guo

Research output: Journal article publicationJournal articleAcademic researchpeer-review

8 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)83-128
Number of pages46
JournalAnnals of Operations Research
Issue number1-2
Publication statusPublished - Aug 2020


  • Case study
  • Fashion industry
  • Franchising contract
  • Literature review

ASJC Scopus subject areas

  • General Decision Sciences
  • Management Science and Operations Research


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