2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

1...

A. The defendant is a company that runs a franchise business in the trade name of “B”.

On June 23, 2014, the Defendant provided the Plaintiff with an information disclosure statement pursuant to Article 7(1) of the Fair Transactions in Franchise Business Act (hereinafter “Franchising Business Act”). On June 25, 2014, the Plaintiff entered into a franchise agreement with the Defendant on which the Plaintiff would operate D (hereinafter “D”) in Seo-gu, Daejeon (hereinafter “instant franchise agreement”).

B. Under the instant franchise agreement, the Plaintiff paid the Defendant KRW 53,00,000 in total by paying the remainder of KRW 10,000,000 as the down payment on June 11, 2014, and KRW 42,00,000 for the start payment and KRW 42,00,000 for the start payment on June 26, 2014.

C. On September 22, 2014, the Plaintiff sent to the Defendant a certificate of contents that the instant franchise agreement was cancelled on the grounds that the Plaintiff did not perform its duty to provide information in advance and did not perform its duty to explain. The said certificate reaches the Defendant around that time.

【Fact-finding without dispute over the ground for recognition】 Each entry in Gap's evidence of subparagraphs 1 through 5 (including branch numbers, hereinafter the same shall apply), and the purport of the whole pleadings

2. Determination on restitution following the cancellation of the instant franchise agreement and the claim for damages

A. The gist of the Plaintiff’s assertion 1) The Defendant, as a franchisor under the Franchise Business Act, may not receive franchise fees from prospective franchisees and enter into a franchise agreement with prospective franchisees within 14 days from the date of providing the franchise disclosure statement. The Defendant concluded the instant franchise agreement even though 14 days have not passed since it provided the Plaintiff with the franchise disclosure statement, and received franchise fees from the Plaintiff. (2) The Defendant consulted the Plaintiff in advance before the instant franchise store construction, provided detailed drawings, provided detailed drawings, and provided explanation on the materials, interior structure, equipment, etc. to be accompanied by the plan. However, any information on the Corporation is required.