In franchise business transactions, franchisors’ provisions of the false or exaggerated information and the deceptive information are one of the most important causes of dispute between franchisors and franchisees. This study introduces the main contents of the current regulation and the Korea Fair Trade Commission’s sanctions on the franchisor’s violation of the law. This study suggests some measures to reform the current regulation. For this, it takes (1) the promotion of voluntary information disclosure by the franchisor, and (2) the provision of faithful and useful information suitable for accounting standards as the basic directions for related regulations to be pursued. More specifically, it is recommended to abolish the current policy mandating the calculation of expected sales, and refer to the U.S. Federal Trade Commission's ‘Franchise Rule Compliance Guide’ and the North American Securities Administrators Association's 'FPR Commentary'. For deepening the understanding of this subject, the current study provides future research agenda. Firstly, more empirical analyses of the factors that promote or hinder the franchisor’s ex ante voluntary information disclosures regarding earning claims are needed based on the underpinning theories such as signaling theory, agency theory, and transaction cost theory. Secondly, it is required to continuously monitor market realities and court rulings to enhance the coherence of regulatory policies. For this, it is highly recommended to seek the active participation of industry practitioners and academicians in the process. Finally, it is believed that a scientific approach is needed to define and specify the concept of ‘reasonableness’, which is considered the most important criterion for judging whether the franchisor’s information provision is illegal.