What is the role of distributors? Distributors play a vital role between manufacturers and users. They help in taking manufacturer's products in the forefront of customers that aids in expanding business growth. What do you mean by the term franchising, franchisee and franchisor? Franchising  Franchising stands using another firm's successful business model. Franchisor is the owner of the brand who Franchisee A person or entity to whom the right to conduct a business is granted by the franchisor or licensor. Franchisor  The company owning/controlling the rights to grant franchises to potential franchisees. In the franchise business, franchisee has the right to market franchisor's products by following the methods of franchisor. Franchisee has to pay fees to franchisor for using the rights and the franchisor has to provide rights and ongoing support to the franchisees. To become a franchisee, you need some amount of investment which varies from company to company. What do you mean by the term sales agents and what do they do? Sales representative are appointed by the companies to sell the products to the customers. The target Customers can be wholesalers, retailers or individuals. In return of that, they get a particular fixed amount or commission; as per decided by the companies. I am a fresh MBA graduate and want to start a business on a low investment amount. Should I take distributorship, become a sales agent or should I start a franchised business? There is no requirement of investment if you are looking to become Sales Agent. And in case of Franchise business or distributorship, it depends upon the organization's requirement. We have those companies too listed with us too which require less investment. I have been working in a MNC for last 9 years and now want to start a business on my own. I want to know, what should be the reasonable rate of return on investment in a franchise opportunity? As a franchise owner, you will be investing both your tale