The franchise model in Australia is under significant pressure.

A recent report has shown 76% of audited Caltex franchises were underpaying workers.

Of the 25 retail fuel sites operates by 23 Caltex franchises across Sydney, Brisbane, Melbourne and Adelaide, only six were found to be compliant with workplace laws.

Ross Greenwood speaks with Fair Work Ombudsman Natalie James who has been following the investigation.

“They’re pretty shocking non-compliance results,” she says.

“I would describe this as a high-risk sector.”

“If you’re a franchisee and the franchisor says, ‘I’d like to come look at your books to make sure paying the workers correctly’, and a couple hundred franchisees say, ‘oh no actually we’d rather you didn’t do that’, what does that tell you about what might going on?

“What do they have to hide?”

Listen to the full interview below