About Costa Oil Franchise
Costa Oil is a quick lube and light automotive repair franchise focused on delivering fast, high quality oil changes and fluid services.
The brand is built around completing oil changes in just ten minutes, emphasizing speed and convenience for vehicle owners seeking routine maintenance.
The franchise fee is $54,900, and the brand has been franchising since 2022.
Costa Oil Franchise Cost & Fees
Minimum Investment
$132K
Average Investment
$172K
Maximum Investment
$213K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $54,900 | One-time payment upon signing |
| Royalty Fee | 6.5% of Gross Revenue; $150 per week minimum royalty of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue | National brand fund |
| Total Investment Range | $131,750 – $212,900 | Includes build-out, inventory, working capital |
The investment range of $132K–$213K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.5% of Gross Revenue; $150 per week minimum royalty) and marketing fee (2% 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 | $10,000 |
| Real Estate Commission Fee | $0 | $8,000 |
| Kiosk Lease | $6,000 | $8,500 |
| Ground Lease | $1,500 | $5,500 |
| Training expenses for travel, food and lodging | $2,500 | $5,000 |
| Leasehold Improvements | $5,000 | $8,500 |
| Computer Hardware and Software | $1,000 | $2,500 |
| Office Supplies | $250 | $500 |
| Signage | $7,500 | $10,000 |
| Furniture and Equipment | $7,500 | $15,000 |
| Utilities | $500 | $2,000 |
| Tools | $1,000 | $2,000 |
| Inventory & Supplies | $5,000 | $5,500 |
| Grand Opening Advertising | $7,500 | $9,000 |
| Insurance | $1,000 | $3,000 |
| Licenses and Permits | $1,000 | $2,000 |
| Legal and Accounting | $1,500 | $3,000 |
| Real Estate Due Diligence | $100 | $30,000 |
| Additional Funds – First 3 Months | $23,000 | $28,000 |
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 | Our then current fee (Currently, $200-$300 per month) |
| Audit Fee | Our actual costs |
| Local Marketing Requirement | 2.5% of Gross Revenue |
| Market Cooperative Contribution | As determined by the cooperative. Currently, none. (Maximum 5% of gross sales) |
| 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) |
| Late Fees | $100 plus interest on the unpaid amount at a rate equal to 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law) |
| Insufficient Funds Processing Fee | $100 (or, if such amount exceeds the maximum allowed by law, then the maximum allowed by law) |
| Non-compliance Fee | $500 (then $250 per week until corrected) |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Collection Costs | Our actual costs |
| Convention Fee | Then-current registration fee; currently $0 (plus all travel, lodging and living expenses). |
| Replacement / Additional Training Fee | Currently, $500 per person |
| Special Support Fee | Our then-current fee, plus our expenses. Currently, $600 per day. |
| Customer Complaint Resolution | Our expenses |
| Special Inspection Fee | Currently $600, plus our out-of-pocket costs |
| Non-compliance Cure Costs and Fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Relocation Fee | $5,000 |
| 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 |
| Indemnification | All of our costs and losses from any legal action related to the operation of your franchise |
| 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 |
| Additional Training | If a new Principal Operator or general manager needs training after opening, a fee of $500 per person is charged. The franchisor may require additional training programs or refresher courses in the future. |
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 franchise is granted for a specific, franchisor-approved location within a 'Marketing Area'. This Marketing Area will generally have a population of approximately 50,000 people or a three-mile radius, defined by boundaries such as counties, streets, or geographical features. Factors influencing the grant include proximity to malls, business centers, traffic, parking, and competition. The franchisor will not establish or license another outlet selling similar goods/services under the same trademarks within this exclusive Marketing Area. If the Marketing Area is not specified in writing before opening, it defaults to a 3-mile radius around the location. Multi-unit developers receive an exclusive development area. |
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 give 90-180 days advance notice, be in compliance with all contractual obligations, renovate to then-current standards, sign the then-current form of 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 | No transfers without franchisor approval. Conditions include paying a transfer fee, the buyer meeting franchisor standards and not being a competitor, the buyer and owners signing the then-current franchise agreement and related documents (including personal guaranty), the franchisee having paid all monetary obligations and being in compliance, the buyer completing training and paying an 'Under New Management Advertising Fee', the franchisee and transferee signing a general release, and the business complying with then-current system specifications (including remodel, if applicable). |
| Termination for Cause | The franchisor may terminate for cause with a 10-day cure period for non-payment or a 30-day cure period for other curable defaults. Termination without a cure period can occur for reasons such as misrepresentation, knowingly submitting false information, bankruptcy, loss of location, violation of confidentiality or non-compete, violation of transfer restrictions, slander, refusal to cooperate with inspection, ceasing operations for more than 5 consecutive days, operating dangerously (if not corrected within 48 hours), three defaults in 12 months, cross-termination, felony conviction/plea, or any act materially affecting the brand. |
| Non-Compete Period | During the term of the franchise, and for two years after termination or expiration. |
| Non-Compete Details | During the term, the franchisee, any owner, or their spouse cannot have an ownership interest in, lend money to, provide services to, or be employed by any competitor. After termination or expiration, for two years, the same restrictions apply 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 at the time of termination/expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While personal participation is not required, the franchisee must designate a 'Principal Operator' who is primarily responsible for the business and holds at least 10% ownership. This Principal Operator (and any general manager) must complete initial and any future post-opening training programs and make reasonable efforts to attend required meetings. If the business is an entity, all owners must sign a Guaranty and Non-Compete Agreement. |
| Required Suppliers | Franchisees must purchase oil change stickers directly from the franchisor. They must also lease their oil kiosk from the franchisor or purchase it from an approved supplier, unless converting an existing oil & lube building with approval. Approved suppliers are required for equipment, inventory, and supplies, and the franchisor or its affiliates are approved suppliers for kiosks, apparel, uniforms, reminder stickers, signage, computers, management services, customer reputation management, bookkeeping, and real estate advisory services. The point-of-sale software and hardware, and related software and hardware, are also specified by the franchisor. |
| Supply Restrictions | Franchisees must purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the business either from the franchisor/designee, approved suppliers, or according to franchisor specifications. The franchisor reserves the right to be the only approved supplier for any product or service in the future. Franchisees must obtain insurance from approved providers meeting specific coverage requirements and naming the franchisor as an additional insured. Alternative suppliers or products require written approval from the franchisor, which may involve a review fee. |
| Franchisor Revenue from Suppliers | The franchisor receives a $300 payment for each franchisee license purchase of Gusto software (payroll processing). It also receives a real estate development fee from Oil Kiosk LLC (financier of kiosk construction) and rebates from iPromo (online company store for promotional items). The franchisor states it has the right to earn a profit from any product it supplies or from designated suppliers and is not required to provide an accounting of such payments or share benefits with franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct financing and does not guarantee notes, leases, or obligations. However, it mentions that if a franchisee intends to finance with SBA-backed loans, an SBA Addendum to the Franchise Agreement must be signed. |
Costa Oil Franchise Earnings — Item 19
Average Revenue
$291K
Revenue Range
$135K – $654K
Sample Size
14 units
Past financial performance does not guarantee future results. Individual results will vary.
Costa Oil Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Costa Oil System Growth
Total Units
13
Franchised
0
Company-Owned
13
Costa Oil currently operates 0 franchised locations and 13 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 0 | 9 |
| 2020 | 4 | 1 | 12 |
| 2021 | 2 | 1 | 13 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 11 states: California, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$1.8M
Total Assets
$1.8M
Audited by P.C. Financial Services, LLC for year ending December 31.
Costa Oil Franchise — FAQ
The total investment to open a Costa Oil franchise ranges from $131,750 to $212,900, 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.
Costa Oil charges a royalty fee of 6.5% of Gross Revenue; $150 per week minimum royalty of gross sales, plus a 2% of Gross Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Costa 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 Costa Oil to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Costa Oil franchise owners report average revenue of $291K. This is based on a sample of 14 units. Past performance does not guarantee future results.
Costa Oil has been franchising since 2022. The FDD shows an investment range of $131,750-$212,900, a 6.5% of Gross Revenue; $150 per week minimum royalty royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). 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 $131,750 to $212,900 depending on location size and market. 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 Costa 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 Costa Oil or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com