New Star Georgia was a franchisee of New Star California, a residential and commercial real estate and investment business. The franchise agreement granted New Star Georgia the exclusive right in Georgia to use New Star California's brand name, logo, and proprietary business system in representing clients in commercial and residential real estate transactions. The agreement further provided that New Star California would provide marketing and advertising support to New Star I Georgia, would provide referrals to New Star Georgia through its franchisee network, and would permit New Star Georgia to use its website for an additional user fee. The franchise agreement required New Star Georgia to pay New Star California a franchise initiation fee. New Star Georgia also had to pay New Star California a royalty for real properties that it sold. New Star California was authorized to audit New Star Georgia's books periodically to verify that all contractual fees had been correctly determined, and New Star Georgia had to periodically report its real estate transactions to New Star California. After the owner and president of New Star Georgia misappropriated escrow funds intended as earnest money for a commercial real estate transaction, the purchasers sued New Star California, asserting that New Star California was because New Star Georgia was its agent. Was New Star Georgia an agent of New Star California? Explain.