FacebookMeta
including the Internet, or any social media, for viewing by the public that contains our registered trademarks without our prior written approval. You may not establish a website, Facebook®, Twitter®,
From the filings
+33.333% units YoYHQ-led decisions
REED
Professional servicesREED runs 12 recruitment-franchise locations, all franchised, and grew units 33.3% year over year. Item 8 already requires franchisees to use REED's own proprietary CRM software, X3, sourced from the franchisor, a category vendors should note is already occupied.
For software vendors selling into US franchise brands.
Live signals
Total units
12
12 franchised
Unit growth YoY
+33.333%
vs prior filing
AUV
—
Item 19, 2026
Royalty
12%
of gross sales
Ad fund
—
national + local
Initial fee
$3K
per unit
Investment range
$17K–$71K
all-in, Item 7
Procurement
Standards based
from the filing
Non-compete
1 years
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.
12%+of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
InstagramMeta
t, or any social media, for viewing by the public that contains our registered trademarks without our prior written approval. You may not establish a website, Facebook®, Twitter®, Instagram®, or other
LinkedInLinkedIn
rtising efforts to promote your REED Business; however, because the vast majority of the advertising and marketing you will do will be through online job boards and platforms like LinkedIn, which allo
LinkedIn RecruiterLinkedIn
ifications (if you do not already have one) and, after your first year, it will cost you approximately $1,500 per employee to obtain the required licenses for Microsoft Office and LinkedIn Recruiter L
TwitterX
he Internet, or any social media, for viewing by the public that contains our registered trademarks without our prior written approval. You may not establish a website, Facebook®, Twitter®, Instagram®
Franchisor behaviours
What the franchisor requires
17 requirements the franchisor states in this filing, each in its own words; 9 explicit no's; 8 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
acknowledges that Reed shall always have access to X3 for the purposes of (i) audit and inspection and (ii) training and advice in respect of the Franchisee’s Business.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
The Franchisee shall: (a) maintain records of all sales and Gross Monthly Receipts and submit to Reed the GMR Statements in accordance with Section 4.7(a).
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
This software will be supplied to you by us, our affiliate or our designated third-party supplier.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may amend the Designated Suppliers or Required Purchases in the future at any time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
As of the Issuance Date hereof, neither we nor our affiliates have received any revenue from required purchases or leases by franchisees, nor do we anticipate deriving revenue in the future on account of your Required Purchases.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
5Item 8
will represent between 5% and 10% of your total purchases in connection with the ongoing operation of your REED Business.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
transfer - 30- 30 Reed Company Cofidential telephone numbers; assignment to Reed of all domain name registrations;
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
allow Reed to institute programs for auditing customer satisfaction and/or measuring quality control issues and provide all such assistance in relation thereto as Reed shall require.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
allow Reed to institute programs for auditing customer satisfaction and/or measuring quality control issues
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Manual: the manual setting out the operations and procedures for running the Branded Business compiled by Reed, as updated from time to time by Reed.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
ITEM 12 TERRITORY Your RIG – “Territory” When you and we sign the Franchise Agreement, we will specify a territory that will be known as a “RIG” and your “RIG” must be approved by us.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 13
You may not establish a website, Facebook®, Twitter®, Instagram®, or other similar social media without our prior written approval.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We require that all fees payable to us be paid through an electronic funds transfer, including automatic debits from your bank account(s), unless we specify otherwise.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
In relation to the Franchisee's employees who are engaged in the Franchisee's Business, the Franchisee shall at all times during the Term employ sufficient number and quality of employees to fulfil its obligations under this agreement and meet customer demand.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have direct, independent unlimited access to the information and data on your computer system.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 8
You must use our proprietary customer relationship management software (currently, X3) which is licensed to you as part of the REED Business under the Franchise Agreement (Exhibit 8 to this disclosure document).
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
Periodically, and in our sole discretion, we may require you and/or your employees to attend additional continuing education seminars, training events, or corporate conferences (“Additional Training Events”).
The filing answers no to 9 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
- Can a franchisee propose a new supplier for the franchisor's approval?Item 8
- Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?Franchise agreement
- Is a minimum grand opening advertising spend required?Item 7
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Must equipment be purchased from designated or approved suppliers?Item 8
- Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?Item 11
The vendor opportunity at REED 12 franchised locations (no company-owned units) in the professional-services segment, with unit count up 33.3% year over year. The FDD makes no financial performance representation under Item 19. REED is part of Reed Specialist Recruitment.
Who controls software purchasing Item 2 names the officers behind REED's franchise operations. Item 8's mandate that franchisees source REED's proprietary CRM software, X3, from the franchisor keeps that core system decision at HQ. All 12 mapped operators run a single location each.
Tech named in the FDD, and what is actually required Item 8 mandates REED's proprietary CRM software, X3, from the franchisor, a category already occupied by an in-house system. Item 11 names LinkedIn Recruiter by LinkedIn as in use. Item 13 names Facebook, Instagram and Twitter (X), and Item 7 names LinkedIn, none of them required.
Procurement, renewals, and timing REED's Item 8 supplier model is specifications-only for most items: computer hardware and software may come from any supplier meeting REED's minimum specifications, except for the proprietary X3 CRM and insurance, which must come from designated suppliers. The initial term is 5 years, with renewal available for at least a further 5 years subject to no default, the current agreement form, a renewal fee and a signed release.
How to read the REED FDD The 2026 FDD is filed with state franchise regulators. Talk to FranCloud for a ranked list of similar professional-services targets where a proprietary CRM already occupies the core category.
Questions vendors ask
REED, answered from the filing
Item 2 names the officers behind REED's franchise operations. With Item 8 already mandating REED's own proprietary CRM (X3) from the franchisor, that core decision sits at HQ rather than with the 12 mapped operators, all single-unit.
Item 8 mandates REED's proprietary CRM software, X3, sourced from the franchisor. LinkedIn Recruiter is named as in use under Item 11; Facebook, Instagram, LinkedIn and Twitter (X) are also named in the filing, none of them required.
12 total locations, all franchised, in the professional-services segment; unit count grew 33.3% year over year.
Specifications only for most items, computer hardware and software may come from any supplier meeting REED's minimum specifications, except for the proprietary X3 CRM and insurance, which Item 8 requires franchisees to source from designated suppliers.
The initial term is 5 years, and renewal for at least a further 5 years requires no default, the current franchise agreement form, a renewal fee and a signed release, worth tracking given 33.3% year-over-year unit growth.
The 2026 FDD is filed with state franchise regulators. Use the embedded PDF viewer below to read Item 8's supplier rules directly.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment REED files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
12 operators run 12 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit12
Ownership
The portfolio behind REED
unknown of reed specialist recruitment.
Related Professional services brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.