Franchise performance information including potential sales, income, or profits is very important for both prospective franchisees and franchisors. Prospective franchisees want financial performance information when deciding whether or not to purchase a particular franchise. Franchisors use financial performance information as a powerful selling tool for recruiting prospective franchisees who need for information about the possible financial results of their investment. Financial performance representations(FPR) that state fraudulent or exaggerated information result in franchisees’ loss of their investments. In Korea, the number of disputes in which franchisees ask for contract termination due to the franchisor’s provision of fraudulent or exaggerated information has increased continuously during the past decade. For this reason, the Korea Fair Trade Commission(KFTC) recently prohibited the use of those deceptive and misleading practices conducted by the franchisors. The Franchise Transaction Law amended on August 2013 requires Korean franchisors with more than 100 franchisees or franchisors who are not classified as small and medium companies to provide prospective or current franchisees with the Sales Projection Document(SPD). Most franchisors and their representatives such as Korea Franchise Association are reluctant to comply with the Amended Law whereas franchisees and civil right groups are welcoming it. This study addresses the problems of KFTC’s current regulations on financial performance representations including mandatory provision of SPD, a form of FPR. For this, the authors review the history of FTC Franchise Rule regulations on FPR and contrast the opposing arguments related to the mandatory disclosure of FPR. The debate concerning the mandatory disclosure of FPR falls into one fundamental issue: Should the franchisor make a financial performance representation or should the prospective franchisee gather relevant information for their own success. With respect to the adequacy of the mandatory disclosure of FPR, this study also discusses the franchisor‘s use of integration clauses. The FTC Rule prohibits franchisors from disclaiming liability for statements authorized by franchisors in their disclosure documents. By prohibiting this practice, FTC preserves the integrity of the material information in the disclosure document, thus preventing deception. It is still controversial whether franchisors can use an integration clause that purports to disclaim their legal responsibilities. Reviewing the benefits and the costs of mandatory disclosure of FPR and the judicial decisions regarding the franchisor’s use of integration clause, the authors suggest several directions for further development in governmental regulations on FPR. These suggestions would contribute to the development of fair and undeceptive practices in franchise industry by enhancing the reasonableness of the current regulation on FPR and by lessening the franchisors’ reluctance to comply with the law.