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

A. Defendant B Co., Ltd. (formerly changed: D.; hereinafter “Defendant Company”) is a company running restaurant franchise business that sells boomed rice, etc., and Defendant C is the representative director of the Defendant Company.

B. In order to operate the “F” at the stores D7 of the building Ma-gu, Seongbuk-gu, Sungnam-si, the Plaintiff entered into a lease agreement with the said store as KRW 100 million, monthly rent of KRW 500,000 (excluding value-added tax), and entered into a franchise agreement with the Defendant company on November 17, 2012, 70,000 won, royalty of KRW 2%, and contract period of two years (hereinafter referred to as “instant franchise agreement”) (from December 15, 2012 to December 14, 2012), and started as of December 12, 2012.

C. On the other hand, on July 23, 2013, “H” entered into a franchise agreement with the Defendant Company and started its business on the part of the Defendant Company in Young-gu G with the 4.4km in a straight line away from the instant store.

On June 2, 2014, the Plaintiff notified the Defendant Company of the content certification, “The Defendant Company, despite its obligation to protect the Plaintiff’s business area (5 km radius) pursuant to Article 27(1) of the instant franchise agreement, opened the Plaintiff, in violation of this obligation, and thereby, the Plaintiff suffered a sudden decrease in the sales of the instant store. As such, the Plaintiff notified the Defendant Company of the fact that, by June 9, 2014, the Plaintiff would compensate for KRW 186,84,525, equivalent to the net profit of the reduced sales amount calculated by the Plaintiff from the start of the H business until the start of the H business and would reduce a definite reply as to whether to close the H.”

E. On June 13, 2014, the Defendant entered into a franchise agreement by establishing a business area in which the franchise store business operator can protect the franchise store, but the business area, namely, the business area, is determined through a judgment of various factors, such as the situation of the surrounding area, the traffic, and the administrative district where the business area is located, and the instant case requires that the business area should be 5 km.