The judgment of the first instance court is modified as follows. A.

The Plaintiff (Counterclaim Defendant) is the Defendant (Counterclaim Plaintiff) with KRW 5,821,107.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. The Plaintiff is a corporation that runs a food franchise business and a wholesale and retail business of food materials with the trade name of “stock company A,” and the Defendant was an individual entrepreneur who is supplied with food materials and other goods necessary for the business by the Plaintiff and operated the restaurant.

B. On December 18, 2017, the Plaintiff: (a) granted the Defendant the right to operate a franchise; (b) provided the Defendant with management support; (c) paid the Plaintiff a franchise fee; and (d) entered into a food franchise agreement (hereinafter “instant franchise agreement”); and (c) supplied the Defendant with food materials and other goods necessary for the business under the said agreement from January 2, 2018; and (d) the main contents of the instant franchise agreement are as follows.

Article 9 (Renewal and Extension of Period of Franchise Agreement and Additional Establishment of Franchise Stores) (1) This Agreement shall become effective as from the date on which Gap (Plaintiff) and Eul (Defendant) sign and seal this Agreement, and the initial contract period shall be two years from December 18, 2017, which is the date of the execution of this Agreement.

Article 15 (Bearing of Expenses for Establishment, Operation, etc. and Rescission or Termination before or after Opening) If it is intended to terminate or cancel a contract for the first franchise prior to the opening of the store at the request of A or B after seven days from the date of request for the cancellation or termination of the penalty, 90% of the first franchise prior to the opening of the store shall be paid to the other party in writing at least seven days prior to the opening of the store, and the penalty shall be paid in accordance with the following provisions:

Article 18 (Initial Franchise Fees, Deposit, etc.) B shall pay A KRW 31 million (including value-added tax) in return for this Agreement concluded between A and B within one day after the execution of the franchise agreement.