A. On March 4, 2012, the Plaintiff: (a) concluded a franchise agreement (hereinafter “instant agreement”) with the Defendant, stating that the Defendant would operate the store B (hereinafter “instant store”) for five years as a management owner; (b) around March 4, 2012, the Plaintiff entered into between the Defendant and the Defendant.

B. In order to guarantee the liability for damages against the Plaintiff, the Defendant concluded a payment guarantee insurance contract between the Seoul Guarantee Insurance Co., Ltd. with the Plaintiff as the insured and with the total amount of insurance coverage of KRW 84 million (20 million for damages payment guarantee of KRW 64 million under the franchise agreement).

C. According to the instant contract, if the Defendant was to be supplied with goods on credit from the Plaintiff during the contract period, and transfers the sales proceeds (sales proceeds) sold to the Plaintiff to the Plaintiff daily, the Plaintiff would pay the Defendant the balance calculated by deducting the Plaintiff’s royalty distribution amount from the sales proceeds offseting the sales proceeds from the sales proceeds and various operating expenses. Thus, the Defendant’s obligation to remit sales proceeds as stipulated in Article 26 of the instant contract is an important obligation under the instant contract, but the Defendant did not perform the obligation to remit sales proceeds from June 2012.

According to Article 53(2)(a) of the instant contract, where the Defendant violated the obligation to remit the sales amount under Article 26, the Plaintiff may terminate the contract by providing a grace period of not less than two months, specifying the violation of the contract in detail, and notifying in writing that the contract is terminated unless correction is made. According to Article 55, where the contract was terminated as above, the responsible party shall have suffered loss from the other party.