1. The plaintiff's claim is dismissed.

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

Basic Facts

As a company established for the purpose of sports facility operation business, franchise store business, etc., the Plaintiff is a franchisor that runs a franchise business with respect to the “30-minute sports and physical storage center” by obtaining the right to establish and operate the Franchis in Korea using the Fmark and F System from E with its head office in the United States.

On September 6, 2010, the Defendant entered into a franchise store agreement with the Plaintiff (hereinafter “instant franchise store agreement”) and started business from October 18, 2010 to “G from the fifth floor of the Seoul Special Metropolitan City Nowon-gu building”.

The relevant parts of the franchise agreement of this case are as follows.

1. Granting franchises;

b. A franchisee shall run a franchise facility only at one place located within the scope or boundary of the franchise area;

For the purpose of this Agreement, merchant facilities shall be deemed to include all activities of the nature of physical exercise, multilateral, multilateral support, and physical reduction.

A franchisee shall be prohibited from operating any type of business other than Franchis in the same building in which the franchise facility is located.

13. Competition and economic development;

A. Recognizing the inherent nature of the F system and recognizing that the franchisor provides franchisees with his knowledge, know-how and specialized skills for the operation of the franchise facility. A franchisee agrees that it would be an unfair competitive act in which he/she uses or copies knowledge, know-how and specialized skills received from the franchisor for purposes other than the operation of the franchise facility or allow any other person to use or reproduce such knowledge, know-how and specialized skills.

Therefore, the franchise business operator is a franchise store facility and at any time after the contract period.