"To date, we have engaged either directly or through our appointed investment managers with companies, on various issues relating to the emerging risk in franchising models. "We continue an open dialogue with these companies, requesting detail around improved practices and policies, namely transparency around franchisee contracts, as well as improved operational procedures ensuring the correct treatment of workers." She says open dialogue allows First State investment managers to continue to monitor concerns around franchisee risk and ensure corrective action is understood and taken. Franchises 7-Eleven, Caltex, Domino's Pizza and Retail Food Group – whose brands include Donut King, Brumby's, Gloria Jean's, Pizza Capers, Crust Gourmet Pizzas and Michel's Patisserie – have been wracked by scandals of alleged wage fraud, migrant labour exploitation and underpayment of wages.