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Franchize Consultants

New Zealand Franchising Consultants Firm

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Complete Franchisor PESTLE Analysis

January 29, 2020 by Franchize Consultants

The new decade demands clarity of understanding of the business environment. Like the previous best practice (SWOT Analysis), a PESTLE Analysis is another strategic planning framework and process all franchisors should complete as part of their comprehensive franchisor business plan and for maintaining a strong governance focus on the future.

Where else would you consider potentially impactful areas, such as artificial intelligence, government policies, changing social attitudes, new media, climate change, economic cycles, business laws and so on?

Franchisor PESTLE Analysis, in particular, is crucial for identifying relevant environmental trends – including the opportunities / threats they provide.

PESTLE is an acronym for six categories of organisational environmental forces, namely:

  • Political
  • Environmental
  • Social
  • Technological
  • Legal, and
  • Economic

See the following illustration for individual examples by category.

Not surprisingly, strategic planning frameworks like the PESTLE Analysis are increasingly essential to franchisors given the need to navigate an established franchisor business (and aligned franchise network) through an increasingly dynamic operating environment with multiple disruptive forces.

A franchisor, and their advisors, clearly need to consider how these factors may impact (including what opportunities they may afford) and what they are going to do about them. They can then think about how franchisees may be more strategically involved in researching and planning potential system wide changes.

As always there is a need to consider a rating and ranking system, as there are so many areas that could demand attention. A thorough assessment will help a franchisor to narrow down those areas that are suitably important and can practicably be addressed.

About the Franchising Best Practice 500 Series

This is part of a series of franchising best practices. Franchize Consultants is sharing and publishing these best practices weekly for the betterment of franchising.

The team at Franchize Consultants know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.

We have assembled the first 40 best practices into The Best Practice Handbook, which is available for purchase here.

How can we help you?

Contact us if you’re contemplating franchising your business or would like help with an established franchise network. We’d be very happy to sit down with you to understand your situation and objectives and explain the supporting services we provide. For more information on each, contact Adrienne (office@franchize.co.nz or 09 523 3858). Follow us on Facebook, Google and LinkedIn.

Category: Blog, Franchising Best Practice 500

Read our latest blog posts…

  • Responsible Franchising: Building the Right System from the StartJune 19, 2025
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  • When the Pressure’s On, Structure Matters: The Role of a Franchise System ReviewJune 9, 2025
  • Is Your Franchise Manual Missing in Action?June 4, 2025
  • Franchize Bulletin June 2025June 1, 2025

About Franchize Consultants

New Zealand’s largest and most experienced franchising consultancy providing specialist advice and assistance to prospective and existing franchising and licensing networks. Founded in 1989, Franchize Consultants provides consulting, training, mentoring and research services to leading local and international franchising companies.

Previous Post:Complete Franchisor SWOT Analysis
Next Post:Planned Multi-Unit Franchising Strategy

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Franchize Consultants (NZ)
Suite 4, Level 1, 27 Gillies Avenue, Newmarket, Auckland, New Zealand.

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