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

The purport of the claim and appeal is the purport of the appeal.

A. On January 14, 2013, the Plaintiff entered into the instant franchise agreement with the Defendant (hereinafter “instant franchise agreement”), and the Defendant operated a franchise store with the trade name “D store.”

B. Article 3(2) of the instant franchise agreement provides, “Voluntary purchase and sale of a store shall be subject to prior approval from the Plaintiff, and shall be succeeded, transferred, and acquired by transfer to the same brand (hereinafter “C”).” Article 4(1) of the instant franchise agreement provides, “The Defendant shall pay to the Plaintiff KRW 20,000,000,000,000,000,000,000,000,0000,000,000,0000

C. By February 15, 2016, the Defendant closed the supply of goods, such as chickens, from the Plaintiff, and closed its business, and entered into a new franchise agreement with the “E Gyeongnam Branch,” and registered its business with the name of “F store” on February 18, 2016.

The remainder remaining after deducting the amount of goods supplied by the Defendant to February 15, 2016 from the amount of goods pre-paid by the Plaintiff is KRW 146,200.

On February 19, 2016, the Plaintiff paid the Defendant the above KRW 146,200.

[Ground of recognition] Facts without dispute, Gap evidence Nos. 4, 6, 12, Eul evidence Nos. 1, 2, and 3, the purport of the whole pleadings

2. The parties' assertion and judgment

A. The plaintiff asserts that the defendant is obligated to pay 20 million won penalty to the plaintiff as damages in accordance with Article 4 (1) of the instant franchise agreement, since the defendant violated Article 3 (2) of the instant franchise agreement and unilaterally terminated the contract after changing the trade name to E and unilaterally cancelling the contract.

The defendant asserts that since the franchise agreement of this case was terminated under the agreement with the plaintiff, the defendant does not have an obligation to pay penalty.

B. Determination is based on the following: (a) the remainder remaining after deducting the amount of goods supplied by the Defendant to the Plaintiff from the amount of goods pre-paid by the Defendant to February 15, 2016; and (b) the Plaintiff paid the amount of KRW 146,200 to the Defendant on February 19, 2016.