ReedFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A REED franchise requires a total initial investment of $16K – $71K, including a $15K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $16K – $71K
- 4th pct Business Serv…
- Avg gross sales
- N/A
- 29th pct Business Serv…
- Royalty
- N/A
- Units
- 9
- 15th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $16K – $71K including a $15K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 70/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Reed Franchise Partnerships LLC
- Parent company
- Reed Specialist Recruitment Limited
- Incorporated in
- DE
- HQ
- 1105 N. Market Street, Wilmington, DE 19801
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $29K
- vs $2K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
REED franchisees operate [BUSINESS MODEL NOT DISCLOSED IN DATA]. Without clarity on the business model, it is unclear whether franchisees manage retail locations, provide services, or operate mobile/virtual operations. Daily activities cannot be assessed without knowing the core business offering.
- CEO
- James Reed
- Headquarters
- DE
- Founded
- 2021
- FDD year
- 2024
- States available
- 5
FDD Item 7 · 2024 filing · 11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $3K | $15K | |
| Real Estate/Rent/Leasehold Improvements | — | — | |
| Utility Deposits | $0 | $1K | |
| Insurance | $3K | $10K | |
| Business Licenses | $0 | $1K | |
| Computer System, Office Equipment and Supplies | $1K | $6K | |
| Training | $0 | $2K | |
| Signage | $0 | $2K | |
| Professional Fees | $0 | $2K | |
| Pre-Opening Advertising | $0 | $2K | |
| Additional Funds - for 6 months | $10K | $30K | |
| Total initial investment | $17K | $71K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $16K – $71K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $3K – $15K
- Better than avg vs category
- Royalty
- Level 1: 10% (10yr term) or 12% (5yr term) of Gross Recei…
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $3K |
| Renewal fee | $5K |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Business Services averages
How Reed Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 8
- Last reporting year
- Closed
- 2
- Turnover rate
- 22.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +200.0%
- Net unit change last year
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 2
- Transfers (3yr)
- 0
- Projected new
- 11
- Franchisor's next-year forecast
- Ceased ops
- 66.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 33
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage, rapidly expanding system with opaque unit economics, undisclosed profitability metrics, and aggressive royalty structure that obscures true franchisee earning potential.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $4
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 70 / 100 rating
- 01MINORNo Average Unit Volume (AUV) or net income disclosure — impossible to validate ROI claims or assess profitability
- 02MINORExtremely rapid growth (200% YoY) from only 9 units suggests either very early stage or unsustainable expansion trajectory
- 03MINORHigh royalty rate (10-12%) with minimal transparency on when/if franchisees actually reach the 1% reduction tier
- 04MINORWide investment range ($16K-$71K) without clear breakdown indicates potential hidden costs or inconsistent unit economics
- 05HIGHNo litigation disclosure provided, but early-stage franchises often lack complaint history simply due to small unit count
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | RIG (Roles, Industry, Geography) |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 89 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- X3
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: X3
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
REED · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a REED franchise?
The total investment to open a REED franchise ranges from $16K – $71K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do REED franchise owners earn?
REED does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is REED's franchise failure rate?
SBA 7(a) loan charge-off data is not available for REED (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many REED franchise locations are there?
As of their most recent FDD filing, REED has 9 total units in the United States, including 1 franchised units and 0 company-owned units. 8 new units were opened in the latest reporting year.
Is REED a good franchise to buy?
FranchiseVerdict rates REED as a D-grade franchise with a risk score of 70 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.