About Cost Oil Franchise
Cost Oil is an automotive quick lube franchise under parent company Costa Holdings, LLC, offering opportunities since 2023.
Each location provides fast, affordable oil changes and basic vehicle maintenance services.
The brand focuses on speed, value, and customer convenience, offering a streamlined service menu that keeps vehicles running smoothly without lengthy wait times.
Cost Oil Franchise Cost & Fees
Minimum Investment
$156K
Average Investment
$1.1M
Maximum Investment
$2.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $54,900 | One-time payment upon signing |
| Royalty Fee | 6.5% of Gross Revenue; $200 per week minimum royalty of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Revenue, currently 1% of Gross Revenue | National brand fund |
| Total Investment Range | $155,750 – $2,000,900 | Includes build-out, inventory, working capital |
The investment range of $156K–$2.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.5% of Gross Revenue; $200 per week minimum royalty) and marketing fee (Up to 2% of Gross Revenue, currently 1% of Gross Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $54,900 | $54,900 |
| Grand Opening Onsite Support Fee | $5,000 | $5,000 |
| Real Estate Commission Fee | $0 | $8,000 |
| Kiosk Lease | $12,000 | $16,500 |
| Kiosk Engagement Fee | $5,000 | $7,000 |
| Ground Lease | $4,500 | $15,000 |
| Training expenses for travel, food and lodging | $1,500 | $3,500 |
| Computer Hardware and Software | $1,000 | $2,500 |
| Office Supplies | $250 | $500 |
| Signage | $3,500 | $15,000 |
| Furniture and Equipment | $7,500 | $15,000 |
| Utilities | $500 | $2,000 |
| Tools | $1,000 | $2,000 |
| Inventory & Supplies | $12,000 | $16,000 |
| Grand Opening Advertising | $5,000 | $10,000 |
| Insurance | $1,000 | $3,500 |
| Licenses and Permits | $100 | $3,000 |
| Legal and Accounting | $1,500 | $4,000 |
| Site Plan Approval | $12,500 | $20,000 |
| Building Permit Approval | $20,000 | $35,000 |
| Additional Funds – First 3 to 6 Months | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000, plus any brokers fees or other fees we incur. |
| Renewal Fee | 25% of the then-current franchise fee |
| Technology Fee | Then-current fee, currently, $200 per month |
| Audit Fee | Our actual costs (payable only if (1) we audit you because you have failed to submit required reports or other non-compliance, (2) the audit shows that you have not met your local advertising requirement, or (3) the audit concludes that you under-reported gross sales by more than 3% for any 4-week period) |
| Website Design and Local Marketing Requirement | Greater of $99 per month and 2.5% of Gross Revenue |
| Payroll Fee | $40 to $300 per month plus $3.00 to $6.00 per month per employee |
| Market Cooperative Contribution | As determined by the cooperative. Currently, none. (Maximum 5% of gross sales) |
| Convention Fee | Then-current registration fee; currently $0 (plus all travel, lodging and living expenses) |
| Relocation Fee | $5,000 |
| Third-party Vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. |
| Supplier Review Fee | Our actual costs (estimated to be between $500 to $5,000) |
| Replacement / Additional Training Fee | Currently, $500 per person |
| Special Support Fee | Our then-current fee, plus our expenses. Currently, $600 per day. |
| Special Inspection Fee | Currently $600, plus our out-of-pocket costs |
| Temporary Management | Our then-current fee (currently, $600 per day plus any expenses we incur) |
| “Under New Management” Advertising Fee | $1,000 to $5,000 depending on market size |
| Customer Complaint Resolution | Our expenses |
| Late Fees | $100 plus interest on the unpaid amount at a rate equal to 18% per year |
| Insufficient Funds Processing Fee | $100 |
| Non-compliance Fee | $500 (then $250 per week) |
| Non-compliance Cure Costs and Fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Collection Costs | Our actual costs |
| Indemnification | All of our costs and losses from any legal action related to the operation of your franchise |
| Liquidated Damages | An amount equal to royalty fees and marketing fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term. |
| Prevailing Party’s Legal Costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 40 hours |
| Classroom Training | 20 hours |
| On-the-Job Training | 20 hours |
| Training Location | Hanover, PA (and online/virtual) |
| Additional Training | If a franchisee sends a manager or other employee to the training program after opening, a fee of $500 per person will be charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Approximately 50,000 people or a three-mile radius |
| Description | The Marketing Area is generally defined by boundaries such as counties, political boundaries, streets, geographical features, or trade areas. Factors influencing the grant of Marketing Areas include proximity to malls, shopping centers, business centers, industrial parks, airports, traffic count, traffic speed, access to the location, and local competition. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 15 years |
| Renewal Fee | 25% of the then-current franchise fee |
| Renewal Conditions | To renew, the franchisee must provide advance notice, be in compliance with all contractual obligations, have substantially complied with agreements throughout the term, renovate to current standards, sign the then-current franchise agreement and related documents (including personal guaranty), pay the renewal fee, and sign a general release (unless prohibited by law). |
| Transfer Fee | $10,000, plus any brokers fees or other fees we incur. |
| Transfer Conditions | The buyer must meet franchisor standards, not be a competitor, sign the then-current franchise agreement and related documents (including personal guaranty), complete training, and pay an "under new management" advertising fee. The selling franchisee must have paid all monetary obligations and be in compliance with all contractual requirements, and both parties must execute a general release (subject to state law). The business must comply with then-current system specifications, including any required remodel. |
| Termination for Cause | The franchisor may terminate the agreement for cause, subject to applicable notice and cure opportunities. Causes include non-payment (10 days to cure), other breaches (30 days to cure), or immediate termination without cure for misrepresentation, false reports, bankruptcy, loss of location, violation of confidentiality/non-compete/transfer restrictions, slander, refusal to cooperate with inspection, cessation of operations for more than 5 consecutive days, dangerous operation (if not corrected in 48 hours), three defaults in 12 months, cross-termination, felony conviction, or acts materially affecting the brand. |
| Non-Compete Period | 2 years (post-term) |
| Non-Compete Details | During the term, the franchisee, any owner, or any spouse of an owner may not have an ownership interest in, lend money to, provide services to, or be employed by any competitor. Post-term, for two years, these restricted parties may not engage in such activities with any competitor located within five miles of the former marketing area (or development area if no marketing area was set) or the marketing area of any other Costa Oil business operating on the date of termination or expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees are not required to personally participate in the direct operation of their business, though it is recommended. If the business is owned by an entity, one owner must be designated as the "Principal Operator," who is primarily responsible for the business and holds at least a 10% ownership interest. The Principal Operator must complete initial and any post-opening training programs and make reasonable efforts to attend all required meetings. |
| Required Suppliers | Franchisees are required to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items either from the franchisor/its designee, or from approved suppliers, or according to franchisor specifications. Specific required items include real estate (landlord must sign Rider to Lease Agreement), insurance (specific types and amounts, with franchisor as additional insured), point-of-sale software and hardware, equipment, inventory and supplies (from approved vendors), oil change stickers (directly from franchisor), Costa Oil Kiosks (from approved suppliers like Colvin Team Real Estate, LLC), and advertising and marketing services (from a designated vendor for website design and management). |
| Supply Restrictions | Franchisees must use approved vendors for equipment, inventory, and supplies unless an alternative vendor is approved by the franchisor. Oil change stickers must be purchased directly from the franchisor. Kiosks must be leased or purchased from franchisor-approved suppliers, unless converting an existing building with approval. A designated vendor must be used for website design and management products and services. |
| Franchisor Revenue from Suppliers | The franchisor receives a $300 payment for each franchisee license purchase of Gusto payroll software. A rebate of 20-30% is received from the approved marketing services supplier for all marketing services purchased by franchisees. A rebate of 50 cents per gallon of oil is received from the approved oil distributor. Rebates of 3-9% are received from approved automotive parts vendors, depending on product type and volume. Rebates are also received from the developer of the online company store for promotional items purchased by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct financing. We do not guarantee your note, lease or obligations. |
Cost Oil Franchise Earnings — Item 19
Cost Oil does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Cost Oil does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Cost Oil Litigation & Risk Flags
Clean Litigation RecordCost Oil has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Cost Oil System Growth
Total Units
24
Franchised
9
Company-Owned
15
Cost Oil currently operates 9 franchised locations and 15 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 4 | 1 | 12 |
| 2021 | 2 | 1 | 13 |
| 2022 | 12 | 0 | 24 |
Transfers: 0 | Closures: 0
Public Figures (Item 18)
The following public figures are associated with this franchise: Ryan Ellis
State Registrations
Registered in 16 states: CA, DE, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Cost Oil Franchise — FAQ
The total investment to open a Cost Oil franchise ranges from $155,750 to $2,000,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $54,900. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Cost Oil charges a royalty fee of 6.5% of Gross Revenue; $200 per week minimum royalty of gross sales, plus a Up to 2% of Gross Revenue, currently 1% of Gross Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Cost Oil Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Cost Oil to ensure you have the most up-to-date version.
Cost Oil does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Cost Oil has been franchising since 2023. The FDD shows an investment range of $155,750-$2,000,900, a 6.5% of Gross Revenue; $200 per week minimum royalty royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $54,900 and the total investment ranges from $155,750 to $2,000,900 depending on location size and market. A minimum of $50,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Cost Oil and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Cost Oil or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com