Replication will work with any of the recovery models and the publisher and subscriber databases do not have to be the same recovery model. Feel free to use any recovery model that meets your needs. This is covered in Frequently Asked Questions for Replication Administrators:
What recovery model is required on a replicated database?
Replication functions properly using any of the recovery models: simple, bulk-logged, or full. Merge replication tracks change by storing information in metadata tables. Transactional replication tracks changes by marking the transaction log, but this marking process is not affected by the recovery model.
In addition, simple or bulk-logged recovery model can be used when initializing a subscriber with a snapshot to perform minimal logging of the bulk inserts and enhance replication performance. This doesn't apply with Peer-to-Peer Replication as nodes are typically initialized with a backup.
Hope this helps.