Kamran Talebi,operated Domino's Mount Colah store,a suburb of Northern Sydney,for two years from 2014 until 2016.

He said the franchise model could make a decent base for entrepreneurs provided there was a fair structure underpinning it.

''Failure to do so,not only has devastating effects in the franchisees community,but also in the wider group of independent operators,suppliers and in general Australian economy,"he said.

Sanjeev Sharma is a former Caltex franchisee,who lost his two stores last year,said the inquiry was"excellent news"that would expose an unviable franchise model.

Mr Sharma is organising a franchisee protest in Sydney on Friday after Caltex recently announced it would take full ownership of its store network.