Franchise Contract Dispute Between a Catering Company in Fujian and a Franchisee

Plaintiff, a catering management company based in Fujian, entered into a "Franchise Agreement" with Defendant, an individual business operator from Xiamen, authorizing the Defendant to open a franchise store in Siming District, Xiamen. The contract explicitly required the Defendant to use only raw materials and recipes designated by the head office and prohibited any unauthorized substitutions. During operations, the Defendant used low-cost raw materials from third-party suppliers without authorization. Upon discovery during a head office inspection, the Defendant refused to rectify the violation. Consequently, Plaintiff filed a lawsuit seeking termination of the agreement, payment of liquidated damages by the Defendant, and compensation for brand damage.

The court ruled to terminate the Franchise Agreement signed by both parties. The defendant shall pay the plaintiff liquidated damages of 30 ten thousand yuan, compensate for brand loss of 15 ten thousand yuan, totaling 45 ten thousand yuan; and bear all litigation costs of this case.