A. On July 28, 2014, the Plaintiff, a company running franchise business with the trade name of “F,” entered into a franchise agreement with G and H to establish and operate “I” in the building located in Busan Northern-gu using the Plaintiff’s trademark, service mark, business mark, business method, etc., and G et al. established and operated I points around that time.

B. At the time of the conclusion of the above franchise agreement, G discontinued-gu Busan East-gu J established a specialized point at the same place as “L” around October 2014.

C. On April 30, 2015, the Plaintiff changed the name of the first franchisee to Defendant B on the condition that L is adjusted by means of sale and purchase or closure by the end of October 2015, and entered into a “F franchise agreement (hereinafter “instant franchise agreement”) with the Plaintiff and G and H on July 28, 2014, regarding succession to the rights and obligations of the franchise agreement between the Plaintiff and H.

The main contents of the instant franchise agreement are as follows.

[This case franchise agreement] Article 1 (Agreement on Franchise Relations) A and B (Defendant B) agree to establish franchise relations for F business as follows:

Article 41 (Duty of Confidentiality and Duty of Confidentiality) (5) No Party B shall carry on the same kind of business as Party A's business in its own or a third party's name without permission during the existence of the contract, without permission of Party A.

(6) B shall require its executives and employees, employees, agents, or any other person involved in the operation of a franchise store to bear the same obligations as those set forth in the above paragraph.

Article 42 (Compensation for Damages) (5) If Party B fails to comply with the “Duty of Confidentiality” or “Duty of no competition” as referred to in Article 41, Party B shall be paid KRW 20,000,000 as penalty for penalty for negligence.

(6) Where a contract is terminated due to a cause attributable to B or a voluntary early termination of B, damage incurred to A shall be assessed against B.