1. The Defendant’s KRW 33,500,000 and annual interest thereon from July 16, 2017 to February 21, 2018 to the Plaintiff.

1. Basic facts

A. On March 7, 2017, the Plaintiff entered into a franchise agreement (hereinafter “instant franchise agreement”) with the Defendant who operates the traditional Korean-style restaurant franchise business (hereinafter “instant franchise store”) by setting the contract term from March 7, 2017 to March 6, 2019.

B. The Plaintiff and the Defendant set the franchise fee amount of KRW 33.5 million in the instant franchise agreement (the sum of KRW 6 million in franchise fees, KRW 8 million in business management expenses, KRW 6 million in advertisement promotion expenses, KRW 13.5 million in total), and the Plaintiff paid the Defendant KRW 23 million in the above franchise agreement.

C. The Plaintiff also paid KRW 5 million to the Defendant, through the Defendant, the lease deposit amount of KRW 5 million on the main points of Jung-gu Seoul Metropolitan Government “D” located in Jung-gu, Seoul, which is the place of business of the instant chain store, and the Defendant paid KRW 1 million to the Defendant for the rent that the said tenant paid in advance to the lessor.

On the other hand, the Plaintiff did not pay the remainder of the franchise fee of KRW 10 million, and the Defendant collected KRW 10 million from the card sales generated by the instant franchise store due to the failure to pay the Plaintiff the franchise fee of KRW 10 million.

[Ground of recognition] Facts without dispute, Gap evidence 1 through 6, Eul evidence 2 and 3, the purport of the whole pleadings

2. The assertion and judgment

A. The parties’ assertion 1) The Defendant is the Fair Transactions in Franchise Business Act (hereinafter “Franchising Business Act”).

) Although a franchisor, as a franchisor, was obligated to provide the franchise disclosure statement to the Plaintiff, a prospective franchisee, at least 14 days prior to the conclusion of the franchise agreement pursuant to Article 7, did not provide the franchise disclosure statement. As such, the franchisor is obligated to return KRW 39.5 million, a franchise fee paid by the Plaintiff pursuant to Article 10(1) of the Franchise Business Act. 2) During the process of concluding the instant franchise agreement, the Defendant informed the Plaintiff

(b)an occurrence of the duty to return the franchise fee 1.