Defendant (Counterclaim Plaintiff) filed against the Plaintiff (Counterclaim Defendant) a total of KRW 6,750,00,000 and its related thereto from October 27, 2016 to January 7, 2021.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

Basic Facts

The Plaintiff is a franchisor that runs a "D" franchise business using the business mark "D" with the trade name of "C".

On November 15, 2012, the Plaintiff, E, and F entered into a partnership agreement with the content that E shall exclusively operate the instant store and according to the investment ratio of expenses and profit sharing, by investing the deposit, facility expenses, etc. necessary for the establishment of the “D subordinate shop” (hereinafter “instant store”).

Accordingly, on November 15, 2012, E drafted a franchise agreement with the Plaintiff, the master franchisee, with respect to the instant store (hereinafter “instant franchise agreement”). Unlike as stipulated in Article 16 of the instant franchise agreement, E agreed to exempt the Plaintiff from the contractual performance deposit.

Article 3 (Indication of Chain Store) (1) A chain store to be established under this Agreement (the representative of the grain store for the summer of a franchisee; hereinafter the same shall apply) shall be as follows:

1. Location of the store: Seongbuk-gu Seoul Metropolitan Building;

2. Scale of a store: 567 square meters (172 square meters);

3. Trade name: The grain point that is lower than D;

4. The name of a franchisee: Article 6 (Period of Contract and Renewal) E (1) This Agreement shall become effective for a period of three years from the date on which it becomes effective as from the date on which it is signed and sealed by both parties.

When a contract is renewed, the term of a renewed contract shall also be one year.

except as otherwise provided in this Agreement.

(4) If the plaintiff fails to notify the refusal under paragraph (1) or to notify Eul of the modification of the terms and conditions or of the refusal to renew the franchise agreement between 180 and 90 days before the expiration of the franchise agreement, the franchise agreement shall be deemed to have been renewed by the renewal period specified in this agreement.

However, an objection shall be raised not later than 60 days before the expiration date of the contract.