What is it called when???

[aa2202]

Whats it called when company has a main name, then a bunch of other names for certain locations around the world? For example, six flags inc is how they operate. But they also have different names for different theme parks around the world. What is it called when a business does this?

Thanks

[myfayt]

Some call it sister companies.

If the company is a sole proprietorship, you can use as many DBA's as you want all under the same EIN.

[paul2145r]

There are many names and levels of these types of businesses. They include Branches, Affiliates, Partnering Organizations, Sister Companies, etc.

Branches can be managed by the host company, or independently. Finances are generally run through the host company, which then handles payroll and other expenses.

Affiliate companies pay the primary company for their name recognition, support structure, or other such reasons. The affiliate company keeps most of the money they make, but usually have to pay a small percentage to the host company. This takes away liability from the Host company, and gives the affiliate many benefits that would otherwise be very difficult or impossible to get.

Typically, a Holding Company will be created that owns a certain brand name. That brand name is delegated to new companies created under the holding company. Additional layers may be used in between those two, but it depends on the size and structure of the organization as a whole. This keeps the brand name safe, as well as providing a cushion from liability for everyone involved. If one of the companies is involved in litigation, the others (along with the Holding Company) will usually be safe.

[karateguy]

maybe subsidiaries

[srem]

A Franchise?

[kameron]

an Incorporated company can have many "Trade" names that they operate under which are basically branches to keep all the businesses tied together under one roof

[gkimmer]

It's also called dual agency. Let's say you own a sandwich shop in Texas but need a corporate presence in Tennessee for legal reasons....you would have somebody there act as your agent to receive mail, act on your behalf for state tax purposes, etc.

[The Web Doctor]

If Six Flags is the parent company then the rest are called subsidiaries or branches of the parent company.