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

2. The plaintiffs' claims against the above revocation portion are all made.

1. The Plaintiffs filed a claim against the Defendant for damages due to the suspension of the supply of goods as of July 14, 2017 and damages due to the unfair termination of the franchise agreement as of September 28, 2017. The first instance court dismissed the claim for damages due to the suspension of the supply of goods, and partly accepted the claim for damages due to the termination of the franchise agreement.

Since only the defendant appealed against the part against the defendant, the scope of the judgment of this court is limited to the damages claim due to the termination of unfair franchise agreement.

2. Basic facts are "franchises" as defined in the Fair Transactions in Franchise Business Act (hereinafter "Franchising Business Act"), which run franchise business with business marks "D".

Article 26 (Suspension of Supply of Raw Materials, etc.) (1) In any of the following cases, a franchiser may suspend the supply of raw materials, etc. to a franchisee by giving a written advance notice specifying the relevant reasons seven days prior to the date set for such suspension:

Provided, That the same shall not apply where a franchisee correctss the relevant cause during the foregoing period.

8. If a franchisee arbitrarily adds or deletes business items (including half-class equivalents) and domain new technologies and prices to a franchisee without a written approval from the franchiser, he/she shall endeavor to proceed equally with the same business price.

(2) In any of the following cases, a franchisor may immediately suspend the supply of raw and secondary materials:

6. If a franchisee repeats the same violation on at least two occasions after the franchiser receives a request for correction related to the franchise business of the franchisee, the franchiser may terminate the franchise agreement if the franchisee falls under any subparagraph of Article 26 (1) or (2);

(b)in this case.