1. The part of the judgment of the court of first instance against the Defendants shall be revoked.

2. The Defendants are jointly and severally with the co-defendant C of the first instance trial.

1. Basic facts

A. C was engaged in the retail business of automobile goods under the trade name “G” from the Namdong-gu Incheon Metropolitan City, and transferred the said “G” business to the Defendants on June 1, 2016.

B. around July 2016, C agreed to operate a franchise as a franchisor using a “G” trade name between the Defendants and the Defendants, and pay 1/2 of the profits to the Defendants in return for the operation of the franchise business.

C. C, while recruiting “G” member stores, provided both support from the initial technological education to the commencement of business in the franchisor, and provided support to the franchisor, such as advertising, operation and management of the integrated website, technical education and support for each branch office, periodic visit and human resources training support to the technical team of the headquarters, distribution of all products, selective selection of the shop location, purchase of all tools, tools and subsidiary materials, regional cooperation companies and infrastructure, operation of the G Integrated Call Center, etc.

C On July 28, 2016, the Plaintiff and the “G Seoul Northern Point” entered into each of the instant franchise agreements (hereinafter “instant franchise agreement”) with the Plaintiff on August 11, 2016, and received KRW 60,000,000 for each of the franchise fees from the Plaintiffs.

E. C agreed to comply with the following as a franchisor in each of the instant franchise agreements.

- Installation of store facilities with reasonable prices and costs, supply of goods or services, etc. - Technical education and training (Article 2 subparag. 3) for franchisees and their employees (Article 2 subparag. 4) - Technical assistance and support (Article 2 subparag. 5) - Technical assistance and staff training for 20 years (Article 8) - Visit management and visiting transfer for 3 years (Article 8) - Supply of design drawings and specifications for store facilities (Article 10 subparag. 1) - Procurement and management of goods, etc. (Article 12)

F. However, C did not comply with the above support promised to the Plaintiffs.

【Unsatisfy-based dispute over recognition】 A, A, 2, 3, 4.