1. The plaintiff's claims against the defendants are all dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

1. Basic facts

A. On November 14, 2014, the Plaintiff entered into the instant franchise agreement with Defendant A, a company running a franchise business with the trade name of “E”, setting the term of the instant franchise agreement (hereinafter “E”) between November 14, 2014 to November 14, 2016, and entered into the instant franchise agreement with “E” (hereinafter “instant agreement”). The main contents related to the instant case are as follows.

Article 20 (Duty to Prohibit Competitive Practices) (1) (Defendant A shall not engage in the same kind of business as the business of Party A in his/her own or a third party's name during the contract term of this Agreement without permission of Party A (Plaintiff).

Article 38 (Measures following Termination and Termination of Contracts) (1) B shall immediately suspend the operation of a franchise store upon termination of this contract relationship and at the same time suspend the use of the trade name, trademark, service mark, trade secret, know-how, equipment, etc. of A, and shall impose a civil penalty under the provisions of Article 39 (3) if B fails to comply with this.

(2) Eul shall suspend the use of operation manuals, regulations books, leaflets, POS system, etc. related to Gap, and remove all structures indicating Gap, interior and outside decorations of buildings, signboards, and other symbols immediately. If a person fails to comply therewith, he/she may impose a civil penalty under Article 39 (3) and file a criminal complaint against a violation of the Unfair Competition Prevention and Trade Secret Protection Act.

Article 39 (Compensation for Damages) (2) In case of violation of the provisions of Articles 19 (Duty of Confidentiality) and 20 (Duty of Confidentiality) after the expiration of the contract period or the termination of the contract, Eul shall pay 30 million won as penalty for breach of contract to Gap.

(3) Where Eul fails to take the measures referred to in paragraphs (1) through (2) of Article 38 from the end of this contract, Eul shall pay a penalty of 300,000 won per day in addition to the damages referred to in paragraph (1).

B. The Defendant A’s franchise store operation and the termination of the instant contract shall be registered under the name of the Defendant B, the spouse, and shall be registered.