Senior Professional in Human Resources (SPHR) Certification Practice Exam

Requiring franchisees to use a corporation's payroll system can trigger various legal considerations. One significant concern is joint employment liability, where the actions of franchisees may also be attributed to the corporation due to the level of control exerted over employment practices, including payroll processing. This situation could potentially create legal obligations for the corporation regarding the franchisee's employees.

Additionally, the claim of indirect control can arise, suggesting that the corporation exerts significant influence over the franchisee's operations, which may lead to liability in disputes involving workers’ rights or employment claims. The ostensible agency theory may also come into play, as the franchisee might be perceived as acting on behalf of the corporation, further complicating legal responsibilities and liabilities.

The fact that requiring the use of a specific payroll system touches on these various legal theories illustrates the potential ramifications for the corporation in its relationship with franchisees. Each of these concerns fundamentally stems from the dynamic and nature of the relationship established by such requirements, leading to the conclusion that all aforementioned conditions may apply. Hence, selecting the inclusive option accurately reflects the range of implications that might arise.