Domino's shares have fallen at the open on Monday following allegations of widespread wage fraud within the pizza chain's network.
By 10.30am the stockmarket darling had fallen more than 5 per cent, from its close on Friday of $64.03 to $60.65.
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'I felt betrayed'
Former Domino's worker Rob Goodwin on his experience working at the pizza chain.
Fairfax Media on Saturday revealed widespread underpayment and the illegal sale of visa sponsorship for migrants inside Domino's and its franchisees.
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The six-month investigation included the compiling of a database listing hundreds of workers who claim to have been underpaid, as well as external audits commissioned by the company over the past 18 months that allege "a strong likelihood of unlawful and fraudulent behaviour".
In a statement released to the ASX on Monday, Domino's said the reporting "did not reflect the strong financial performance of its franchise network, the high ethical standards required of all employees and franchisees, or the healthy levels of collaboration between the company and franchisees."
Only 21 franchisees lost money last financial year, while 87 per cent of new store owners last year were either existing franchisees or store managers, which was "an endorsement of the franchise system", the company said.
"There is no reason, no excuse, and no tolerance for any Domino's franchise that chooses not to pay its employees correctly or fails to meet expectations around ethics and governance," the statement says.
Domino's said it had removed four franchisees, who operated seven stores, from its network for deliberately underpaying employees in the past three years.
However, the company has refused to say how many stores spot-checked or audited were found to be underpaying staff, and has not revealed how many workers were underpaid or by how much.
Domino's controls one of the biggest franchise networks in the country, with more than 600 stores employing more than 14,000 workers and selling around 1 million pizzas a week.