$4$ points

Which statement is true about the liability of a franchisor $($e$.$g$.,$ Wendy's "National" Corp.$)$ for acts of any of its franchisees $($e$.$g$.,$ ABC Corporation doing business as Wendy's$)?$

Franchisors are liable for all acts of their franchisees in all circumstances.

Franchisors are never liable for the acts of their franchisees.

The liability of franchisors depends on whether the franchise is a distributorship or a chain$-$style franchise.

Franchisors are only liable for a franchisee's violations of local ordinances.

Franchisors are usually not liable for the acts of their franchisees, but can be liable if an apparent agency was created where it appears to the public that the franchisee is an agent of the franchisor.

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