A wide-ranging parliamentary inquiry is set to probe the $170 billion franchising industry and examine claims of unfair business models and lax regulation in the scandal-ridden sector.

Nationals senator John Williams lodged the terms of reference for the inquiry by the Parliamentary Joint Committee on Corporations and Financial Services on Wednesday, and it will face a vote on Thursday.

7 Eleven is one company expected to be called to give evidence. Credit:Wolter Peeters

It is understood the inquiry has the backing of Small Business Minister Craig Laundy and is expected to be voted up.

A string a major companies whose franchising models have come under fire over the past two years following investigations by Fairfax Media are expected to be called to give evidence.