INTERACTIVE: The full 7-Eleven scandal explained
Convenience store giant 7-Eleven's wage fraud scandal has led to at least one franchisee "abandoning" a store and flying home to China as franchisees struggle to pay full wages.

 It comes as 7-Eleven chairman and major shareholder Russ Withers is preparing to announce radical changes to its business model, including increasing the share of profit it pays to franchisees from the current 43 per cent.

7-Eleven has been in damage control since a joint investigation by Fairfax Media and Four Corners revealed widespread wage exploitation of staff across its franchise network of 620 stores, and Mr Withers will face fresh questions when he fronts a Senate hearing on Thursday.

 The company has had to almost triple the the level of financial support it provides to franchisees after the media investigation revealed 138 of the 620 stores made $300,000 or less in income in 2015, which is not enough to pay full freight wages and other costs. 

 The pressure on franchisees to start paying the legal wages has prompted some to consider selling up. Fairfax Media has learned one franchisee on the Gold Coast suddenly pulled up stumps on his Surfers Paradise store following the scandal. 
It is understood that 7-Eleven head office was forced to step in and operate the store two weeks ago following the sudden departure of the franchisee.
"There is an instance where a store was handed back by the franchisee, as was his right under the terms of the store agreement, and was on the understanding he could focus his energies on seeking appropriate medical care," a spokesman for 7-Eleven said.   
A central 7-Eleven database obtained by Fairfax Media, which records thousands of interviews between store owners and head office regarding payroll compliance, shows the franchisee in question was suspected of underpaying staff.

 "Anomalies have been found regarding number of hours and pay rates NOT MATCHING roster and time sheets for most employees," the review reads.  

 "[Franchisee] explained that he calculates how much each staff member should be paid per shift considering the different pay rates, and divides the total amount by the ordinary hourly rate to find the total number of hours!"

 7-Eleven has been working to soothe franchisees in recent weeks as scores of store owners rushed to sell their franchises. The number of stores on the market now stands at 78 compared with fewer than 50 before the scandal broke. 

 Fairfax Media has obtained a copy of a letter sent by 7-Eleven to franchisees this week inviting store owners to a franchisee business update next month. The meetings will take place in Melbourne on   October 7, and then in Rosehill in Sydney on   October 8 and Brisbane on   October 9.

  "At this [meeting], Russ will open the meeting to announce changes that will be made to the commercial model, impacting both the agreement and the current profit share structure," the letter to franchisees reads.

 In recent weeks franchisees have joined forces at town hall-style meetings in Melbourne, Sydney and Brisbane to draw up a demand list for head office. Sources, who declined to be named for fear of losing their business, have told Fairfax Media that changing the profit share between head office and franchisees is at the top of the list.

 Currently franchisees receive 43 per cent of gross profits excluding fuel sales, while 57 per cent of gross profit flows to head office. The franchisee sources say a 45/55 split would be fairer, along with other concessions.