An apparent agency is created when a franchisor and franchisee use the same trade name and trademarks but make no effort to inform the public of their separate legal status.

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An apparent agency is created when a franchisor and franchisee use the same trade name and trademarks without informing the public about their separate legal status. This can create confusion among consumers who may believe that the franchisee is acting as an agent of the franchisor, even though they are separate legal entities.

An Apparent Agency Is Created When a Franchisor and Franchisee