The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate brief filed after the deadline).

1. Article 13(2) of the Fair Transactions in Franchise Business Act (hereinafter “Franchising Business Act”) provides that “The franchisee’s right to request the renewal of the franchise agreement may be exercised only when the total period of the franchise agreement, including the initial period of the franchise agreement, does not exceed ten years.”

In relation to a franchise contract which constitutes a continuous contractual relationship, the period for exercising the right to request the renewal of the contract under the Franchise Business Act has expired, and in cases where there is no separate agreement concerning the renewal of the contract or the extension of the duration, or the period for exercising the right to request the renewal of the contract of a franchisee agreed under the contract has expired, the parties shall agree to renew the contract anew.

In such cases, a franchisor has the freedom to decide on whether to accept a request for renewal of a franchisee and to agree on renewal, etc.

However, the same shall not apply where there are special circumstances that are not permitted in violation of the good faith principle in light of the purpose or content of the contract of the relevant franchise, the development of the contract relationship, the interests of the parties concerned, the unique characteristics of the franchise contract, etc.

(See Supreme Court Decision 2010Da30041 Decided July 15, 2010; Constitutional Court en banc Decision 2009Hun-Ma582 Decided June 30, 201).2. According to the lower judgment, the first instance judgment cited by the lower court, and the records, the following facts and circumstances are revealed.

The defendant is a person who operates a franchise headquarters with the trade name of "I", which runs a franchising business, such as a catch retail business, and the plaintiff has operated a "I" franchise in a region for about 12 years.

B. Article 15(3) of the franchise agreement between the Plaintiff and the Defendant is the Plaintiff.