1. All appeals filed by the Plaintiff (Counterclaim Defendant) against the instant principal lawsuit and counterclaim are dismissed.

2. The costs of appeal shall be the principal lawsuit.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

Basic Facts

A. The Defendant is a franchisor that runs a coffee franchise with the trade name “E (E; hereinafter “E”)”.

B. On July 15, 2013, the Plaintiff, along with J and K, established C Co., Ltd. (hereinafter “C”) as a master franchisee to take charge of the Yong-Nam area (T) (T) and J assumed office as both inside directors and representative directors of C, and both the Plaintiff and K in-house directors of C.

On September 1, 2014, the Plaintiff, along with J, established D Co., Ltd. (hereinafter referred to as “D”), a master franchisee to take charge of Chungcheong area (including Daejeon Metropolitan City, Chungcheongnam-do, and Chungcheongnam-do), and the Plaintiff was appointed to D’s representative director, and J was appointed to D’s inside director.

C. On October 31, 2013, C and the Defendant concluded C contracts for the recruitment, etc. of member stores in Yong-Nam area (hereinafter “C contracts”), and D and the Defendant respectively concluded C contracts for the recruitment, etc. of member stores in Chungcheong areas (hereinafter “D contracts”) on February 1, 2014.

According to each of the above branch contracts, the contract term with C shall be October 30, 2015, and the contract term with D shall be January 31, 2016, and each of the branch offices shall be at least 10 cases in C and D shall be entered into at least six member stores within one year from the contract date.

(Article 4) In addition, each branch office shall establish E-stores in the name of each branch office in each region before commencing business activities for the recruitment of member stores, and the Defendant shall exempt each member store in the name of each branch from the franchise fee and the term of contract at least 3% of the royalties during the term of contract.

(Article 1. d. of Annex)

As between the Defendant, J entered into a franchise agreement on May 24, 2013 (hereinafter “F store”); the Plaintiff’s G store on September 13, 2013 (hereinafter “G store”); C, on July 23, 2014 (hereinafter “I”); and D, on July 23, 2014 (hereinafter “H store”); and thereafter, from around that time a franchise agreement on H points.