1. The defendant's appeal is dismissed.

2. The costs of appeal shall be borne by the Defendant.

Purport of claim and appeal

1...

1. The reasoning of the judgment of the court of first instance citing this case is as stated in the reasoning of the judgment of the court of first instance except for the addition as described in the following paragraph (2). Thus, this is cited by the main sentence of Article 420 of the Civil Procedure Act.

2. In addition to the part of the judgment of the court of first instance, the following additional determinations are inserted between the sixth and sixth.

- Following: (5) around April 2016, prior to the conclusion of the instant sales contract, the Defendant stated that the Plaintiff would open a CF store in Daegu, and the Defendant, after the conclusion of the instant sales contract, operated the “CF head office” jointly with relative HH, it is reasonable to view that the Defendant was running the CF head office under the direct management of the Plaintiff, instead of concluding a franchise agreement with the Defendant as a party to the instant sales contract and between the Defendant and H as the other party, providing the business rights, including the trade name of C, rather than concluding a franchise agreement with the Defendant and the other party.

(6) As alleged by the Defendant, it is assumed that the Defendant received royalty amounting to KRW 30,00,000 from the franchise store in return for technical transfer, etc. only when the Defendant recruited the franchise store, and agreed to distribute the royalty amount to the Plaintiff KRW 9,00,000,00, in the event that the Defendant does not recruit the franchise store and directly operates the franchise store, it would result in the Defendant’s failure to pay the Plaintiff the price for technical transfer. Therefore, the content of the agreement between the Plaintiff and the Defendant asserted by the Defendant would be more unfavorable to the Plaintiff when compared to the Plaintiff’s recruitment

3. In conclusion, the plaintiff's claim of this case shall be accepted on the grounds of its reasoning.

The judgment of the first instance is just in conclusion, and the defendant's appeal is dismissed as it is without merit. It is so decided as per Disposition by the assent of all participating Justices.