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1.The judgment of the first instance, including a claim that has been reduced and expanded by this Court, shall be modified as follows:
(a)..
Reasons
A principal lawsuit and a counterclaim shall be deemed simultaneously.
1. Basic facts
A. The Plaintiff is a company running a franchise business, such as an outer franchise, with the trade name of “E”, and the franchise store mainly sells food prepared by itself through the mobile phone delivery apps.
On November 3, 2017, the Plaintiff entered into a franchise agreement with the Defendant to operate the Plaintiff’s “E” business mark (trade name, trademark) and the franchise business system with the Defendant’s “E” (hereinafter “instant franchise agreement”) for three years from November 5, 2017 to November 4, 2020 (hereinafter “instant franchise agreement”). The details of the instant franchise agreement relating to the instant case are as follows.
Article 6 (Cancellation of Contract) (1) The plaintiff or defendant may terminate the contract with a written notice given by him/her, if he/she violates any of the following subparagraphs, with a grace period of at least two months, and notify the other party of performance or correction thereof at least twice, and if the performance or correction is not made, the contract may be terminated with a written notice:
5. The termination of this contract does not affect the other party's claim for damages where the Defendant has violated the provisions of Article 21 [the procurement and management of the goods and the payment of the price].
Article 7 [Measures after Termination of the Contract] (1) In the event that the contract terminates due to the expiration or termination of the contract, the use of all intellectual property rights, signboards, insignias, logos, etc. related to the operation of the “E” such as the E system and food group, cooking method, working methods, and the Know-How, etc. shall be immediately suspended, and all business signs, etc. related to the operation of the “E” shall be removed from all the Defendant’s goods within seven days at the Defendant’s expense and restored to the original state.
(3) Where the defendant delays the duty to remove the business sign under paragraph (1), the period of delay shall be 1,500 won per area (the size of a chain store specified in this Agreement).