1. The Defendant (Counterclaim Plaintiff) paid KRW 10,000,000 to the Plaintiff (Counterclaim Defendant) and the Plaintiff’s objection thereto from January 28, 2016 to February 3, 2017.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. The fact that the Plaintiff is recognized is a franchisor that operates a franchise business with the business mark called “C,” and the Defendant is a person who, on May 13, 2015, entered into a franchise store agreement with the Plaintiff with the term of the contract three years, entered into a franchise store agreement with the Plaintiff (hereinafter “instant franchise store agreement”) with the Plaintiff, and entered into a branch contract with the exclusive right to recruit the C franchise store in Seoul Northern area (hereinafter “instant branch contract”).

B. Of the instant branch contracts and franchise store contracts concluded by the Plaintiff and the Defendant, the parts relating to the instant case are as follows.

[Establishment Contract] The term "business in this Agreement" refers to the business that the defendant recruits and opens a franchise store with the plaintiff's branch office in relation to the goods and products handled by the plaintiff using the "C" brand and the franchise business that sells other ancillary items, and conducts all business activities such as the provision of KN-How, supply of raw and subsidiary materials, signboard installation, supervision and various facilities necessary for the operation of the said franchise store, supervision and installation of interior equipment, office fixtures and other necessary articles, supply of office fixtures and other necessary articles, education, training, management guidance and other management affairs.

Article 4 (Name of Branch Office and Area under Jurisdiction of Branch Office)

1. Names of branch offices: The Seoul Special Metropolitan City North Business Department;

2. Area under the jurisdiction of the defendant: Article 5 (Authority, Benefits and Duties of Branch Offices)

1. The plaintiff approves that the defendant acts as an agent for the plaintiff in charge of the recruitment, establishment, support, and management of the franchise store using the trade name "C" within the defendant's jurisdiction.

2. The defendant shall act on behalf of the plaintiff in his jurisdiction, and shall perform independently, and the plaintiff shall pay the profit accrued within his jurisdiction to the defendant under the following conditions:

2) The royalty income: The royalty income at the head office (50%) shall be set at 50%. The term “roat income” shall be located within the region.