Dispute on termination of dealership

Thank you for your immediate response and I understand that your firm is situated in ChangSha instead of WuHan. Anyways, let's see how we can mitigate the situation. 

We are a Singapore furniture company with a branch office in China and we directly manages our dealership program for all our branded stores in China. 

Previously, we managed our stores through a Master Franchisee, which is now defunct and we are managing directly through our office in China. 
We have a situation here with a dealer in WuHan who we had offered our contract directly to continue the dealership but they did not sign it and has been operating for a year without contract and not following our brand guidelines in their operations. 

As this store is poorly managed, sales is low and is detrimental to our brand building in China. Hence, we decided to terminate them and the dealer is disputing against our decision and has made threats to our staff as well as hindering our business growth in WuHan.  

I have attached all documentation that we sent to them for your reference.