Which Statement Is True About Franchisor Liability for the Acts

Which statement is true about franchisor liability for the acts of a franchisee?

A) Franchisors are liable for acts of their franchisees in most circumstances.
B) Franchisors are never liable for the acts of their franchisees, unless the franchisor was a party to the act of the franchisee.
C) Whether a franchisor is liable for the acts of its franchisee depends exclusively on the terms of the franchise agreement.
D) Franchisors are usually not liable for the acts of their franchisees, but they can be liable if the court recognizes the existence of an apparent agency.
E) Whether the franchisor is liable for the acts of its franchisee is based on whether the franchisee has sufficient funds to pay any judgment.