Reed
Formerly known as Franchise Partnerships
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.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 33 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one REED unit return on the cash you put in?
Unlevered ROIC · per unit
201%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 47 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
REED · FDD (2024) PDF