A. 1) The Plaintiff Company A (hereinafter “Plaintiff Company”)

(2) On January 4, 2012, the Plaintiff and the Defendant enter into a franchise store with respect to the F points in the E store located in Busan Metropolitan Government (hereinafter “instant franchise agreement”) with the content that the Defendant would pay franchise fees and use the Plaintiff’s business marks (hereinafter “instant franchise agreement”).

(A) concluded a contract (A was an enterprise that Plaintiff B operated as an individual entrepreneur, and on June 25, 2013, the Plaintiff Company was established and transferred its status as a franchisor against the Defendant in B.

(2) The Defendant paid the Plaintiff Company KRW 660,00 (including value-added tax) on the 15th day of each month for the use of business marks, etc., and did not pay a fixed payment from April 2014.

B. Around December 2014, Plaintiff Company agreed to increase the fixed amount of KRW 770,000 per month with Defendant after entering into the instant franchise agreement, and the Defendant filed a lawsuit seeking payment of KRW 1,078,000 (U.S. District Court Decision 2014Da538099), claiming that “The fixed amount of KRW 1,078,00,000,000 was unpaid from April 2, 2014 to May 2015” (U.S. District Court Decision 2014Da538099). On August 12, 2015, the said court rendered a favorable judgment on the Plaintiff’s claim that accepted the Plaintiff Company’s claim on August 2, 2015 (U.S. District Court Decision 2015Na30104) and notified the Plaintiff Company of the total amount of KRW 40,000 from May 14, 2015 to the termination of the instant franchise agreement.

However, on September 21, 2016, the appellate court terminated the instant franchise agreement on May 15, 2015 according to the Plaintiff Company’s notice of termination, but even after termination of the contract, the Defendant’s business mark, etc. of the Plaintiff Company.