Noodleoo, a struggling restaurant chain, wants to enact a franchise agreement with Stephen to sell its product through a chain-style franchise. Stephen agrees and opens the store, and 6 months later...

Noodleoo, a struggling restaurant chain, wants to enact a franchise agreement with Stephen to sell its product through a chain-style franchise. Stephen agrees and opens the store, and 6 months later Noodleoo goes bankrupt. Which is most likely true of this situation?

A. Stephen was not responsible for looking into the financial status of Noodleoo before making the agreement.

B. If Noodleoo was not transparent with its financial data, it has broken the Franchise Rule.

C. If Noodleoo was not transparent with its financial data, Stephen has no recourse.

D. The Franchise rule does not apply to struggling companies.