The franchisor is liable for the contracts entered into and torts committed by the franchisee while the franchisee is acting within the scope of the apparent agency.

Question

Quizplus · Accepted Answer

When the franchisee acts within the scope of the apparent agency, it gives the impression to the public that the franchisee has the authority to act on behalf of the franchisor. In such cases, the franchisor may be held responsible for any contractual obligations or negligent acts committed by the franchisee.

The Franchisor Is Liable for the Contracts Entered into and Torts