1. Of the judgment of the first instance, with respect to KRW 20,788,446 to the Plaintiff and KRW 13,788,446 to the Plaintiff, among the judgment of the first instance, September 28, 2018.

Basic Facts

The defendant is the representative of the franchiser "C" that carries on the business of the knives store business in the name of the business mark "C" and "D."

On July 6, 2016, the Plaintiff entered into a franchise agreement (hereinafter referred to as “instant franchise agreement”) with the Defendant to operate the “C Daegu Park Store” (hereinafter referred to as the “instant franchise store”), and the terms and conditions of the instant franchise agreement concerning the termination of the contract and the penalty are as specified in the attached Table.

The Plaintiff had been entrusted with the interior management of the instant franchise store to the personnel management company designated by the Defendant. On July 20, 2016, the Plaintiff paid KRW 105,000,000,000 (the receipt for the said money is issued in the name of the Defendant), and the total amount of KRW 35,000,000,000 on September 30, 2016.

The Plaintiff operated the instant franchise store from around August 2016, but expressed his/her intent to terminate the instant franchise agreement with the Defendant on September 28, 2018. Around that time, the Plaintiff closed the instant franchise store, and thereafter transferred the entire business facilities, etc. of the instant franchise store to I in KRW 25,000,000 for premiums.

【In accordance with the Fair Transactions in Franchise Business Act (hereinafter “Franchising Business Act”), a franchisor shall not provide false or exaggerated information in providing information to a franchisee according to the fact that there is no dispute, Gap 2, 3, 6 through 8, 17, and Eul 1 (including each number number), the purport of the whole pleadings, the purport of the Plaintiff’s assertion of the purport of the whole pleadings, and shall compensate for damages suffered by a franchisee, if any, in violation of this Act.

When entering into the instant franchise agreement with the Plaintiff, the Defendant committed an illegal act that provides the Plaintiff with false or exaggerated information, such as expected sales and return rate, etc. Accordingly, the Plaintiff’s franchise fee of KRW 5,000,000, educational expenses of KRW 2,000,000, and interior cost of KRW 105,000,000.