Four franchisees have been let go in the past three years for deliberately underpaying their employees, a statement from Domino's Pizza said on Monday.
The fast food retailer also said it is investigating an allegation of visa fraud but said it had not previously received any complaints of that nature.
Fairfax Media's report said it has a phone recording of a Domino's franchisee from a store in far north Queensland asking for up to $150,000 in exchange for sponsoring a foreign worker.
In the recording, Fairfax said the franchisee admits to having sold sponsorship to another worker as part of visa negotiations.
Meanwhile, the Fair Work Ombudsman (FWO) is investigating a number of Domino's stores for allegedly underpaying staff.
"In recent months FWO has conducted a number of site visits at Domino's outlets across the country, these visits are continuing and as such it would be inappropriate to make further comment at this stage," a spokesman for the industrial regulator said.
These events come just days out from Domino's half year earnings results due to be unveiled to the market on Wednesday.
"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," a statement from Domino's said on Monday.
"Domino's has found no evidence of a link between franchisee profitability and breaches of employment obligations in this time."
The company said it works closely with franchisees in relation to marketing, training, technology and administrative support to provide them with the best opportunity for profitability and success.
It said when it has been identified that an employee has been underpaid, the company's first priority is to ensure the employee receives the correct pay.
Shares in Domino's at 1100 AEDT were down 5.6 per cent, or $3.60 at $60.45.
