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Brokers and mortgage groups could be fined up to $51,000 under new franchising rules that took effect on January 1.
The old Franchising Code was repealed and replaced with the new Franchising Code of Conduct at the start of the year, according to the ACCC, which regulates the code.
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Franchise groups and franchisees can receive infringement notices and financial penalties of up to $51,000 for "serious breaches" of the new code.
The new code has also introduced an obligation for parties to act in good faith in their dealings with one another.
Mortgage franchises now have to provide their brokers with "greater transparency in the use of and accounting for money used for marketing and advertising".
They must also create a separate fund for marketing and advertising fees.
The new code also obliges mortgage franchises to provide prospective new brokers with a short information sheet outlining the risks and rewards of franchising.
Mortgage franchises must now make additional disclosure about the ability of a mortgage franchise and its brokers to sell online.
Franchises are also now banned from imposing "significant capital expenditure" except in limited circumstances.
The ACCC said these are significant changes and that it is important for all parties to understand their rights and responsibilities under the new code.
[Related: Smartline named best franchise in Australia]
