A. On December 24, 2018, the Plaintiff operating the franchise headquarters with the business sign of “C” (hereinafter “the instant franchise”). Around December 27, 2018, the Plaintiff entered into the instant franchise agreement, including the agreement on educational expenses, subscription expenses, royalties, and penalty, with the Defendant (hereinafter “the instant franchise”). B. The Defendant opened and run the instant restaurant with the datum of “C”, which is a meat restaurant (hereinafter “instant restaurant”). The sales made until April 2019, up to KRW 215,051,760 (including value added taxes) in total.

(c)

The Defendant was supplied with meat by the Plaintiff only until January 16, 2019, and thereafter changed the place of supply to other companies. From March 2019, the Defendant had changed its trade name from “D” to “E” and operated the instant restaurant.

2. Determination on the cause of the claim

A. According to the facts of recognition of the occurrence of the instant franchise and royalties, barring special circumstances, the Defendant is obligated to pay to the Plaintiff the sum of KRW 6,451,52 won (=215,051,760 x 3% x less than won) including the amount of KRW 3,300,00 for educational expenses, KRW 500,00 for admission fees, KRW 5,000 for admission fees, and KRW 3% for sales under the instant franchise agreement (see Articles 8(1), 46, and 16(1) of the instant franchise agreement). Under Article 9(1) of the instant franchise agreement, the Defendant is obligated to deposit the instant franchise with the designated financial institution; on the other hand, according to Article 9(3)1 of the instant franchise agreement, if the Defendant already commenced to deposit the instant franchise with the Plaintiff, as long as it had already been reverted to the Plaintiff.