Costa Oil Franchise Cost, Revenue & Review 2026
- Investment
- $132K – $213K
- Disclosed sales
- $453K
- gross sales, not profit
- SBA charge-off
- Limited · 14 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Costa Oil is an automotive franchise offering fast, affordable 10-minute oil changes. Franchisees run the service centers, managing technicians, drive-up service, and customer flow.
FranchiseVerdict summary · 2026
A Costa Oil franchise requires a total initial investment of $132K – $213K, including a $55K franchise fee and an ongoing 6.5% royalty[2]. Per the 2022 FDD, average unit revenue was $453K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $132K – $213K
- 17th pct Automotive
- Avg gross sales
- $453K
- Company-owned only
- Royalty
- 6.5%
- 30th pct Automotive
- Units
- 13
- 10th pct Automotive
- SBA charge-off
- N/A
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $132K – $213K including a $55K franchise fee, 6.5% ongoing royalty.
- RETURNSAverage unit revenue of $453K/year (median $403K) (company-owned outlets only - not franchisee performance). Note: this is gross profit, not take-home income.
- RISKVerdict C (Average), verdict score 44/100 (higher is better).
- GROWTHNegative, pipeline stalled: 21 agreements signed but not yet open against 13 open outlets (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Costa Oil International, Inc.
- CEO title
- Chairman, President, and Chief Executive Officer
- Constantine Kapothanasis
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 316 Broadway, Hanover, PA 17331
- Auditor
- GDS International Co
- Audited financials
- Franchisor revenue
- $1.8M
- Most recent fiscal year
Overview
About
- CEO
- Constantine Kapothanasis
- Headquarters
- PA
- Founded
- 2020
- FDD year
- 2022
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 53% below the typical automotive franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $23K | $28K |
| Equipment, build-out, other | $54K | $130K |
| Total initial investment | $132K | $213K |
Source: Costa Oil 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $132K – $213K
- Top 40% of category vs category
- Liquid capital req'd
- $23K – $28K
- Top 40% of category vs category
- Franchise fee
- $55K – $55K
- Middle of category vs category
- Royalty
- 6.5%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $14K |
| Inventory (initial) | $5K – $6K |
| Total fee load | 8.5% of rev |
What do units actually make?
Average unit sales run 56% below the automotive norm.
Company-owned outlets only - not franchisee performance
Source: FDD 2022 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Costa Oil until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$198K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Costa Oil unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $453K
- Per unit, per year
- Median gross sales
- $403K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue
- Sample size
- 11 outlets
- vs category median 70 · small
- Range (low → high)
- $135K→$654KCited, not corroborated — printed on page 46 of the 2022 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $453K/year in gross sales. Revenue-to-investment ratio: 2.6x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 8.5% (near the Automotive median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive medians
How Costa Oil Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 13
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Signed, not yet open
- 21
- 1.62 per open outlet · Item 20 Table 5
- Projected new
- 25
- Franchisor's next-year forecast
- Ceased ops
- 7.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
18 current owners across 11 states.
- TX 4
- FL 3
- GA 2
- NC 2
- AZ 1
- CA 1
- CO 1
- IL 1
- MO 1
- MS 1
- VA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $5.9M
- Median loan
- $250K
- 50th percentile
- Charge-off rate
- Limited · 14 loans
- Limited SBA coverage: 14 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 14 loans
- 5-yr charge-off
- Limited · 14 loans
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 9.7%
- avg rate to borrowers
- Franchised industry avg
- 14.5%
- n=552 loans
- Jobs supported
- 73
- 1.8 per loan
- Lender concentration
- 50%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in automotive oil change and lubrication shops, franchised businesses charge off at 14.5% vs 17.7% for independents — franchising is associated with 18% lower SBA default risk in this category.
Top lenders financing Costa Oil franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Costa Oil from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 9.65%
- Lender concentration
- 50.0%
- Job velocity
- 1.8 per $100K
- NAICS benchmark
- 9.6%
- NAICS 811191
- Jobs supported
- 73
Top SBA lendersTop lender holds 50% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 5 | $899K | N/A |
| 2 | Stearns Bank National Association | 1 | $765K | N/A |
| 3 | Fidelity Bank, National Association | 1 | $485K | N/A |
| 4 | First Bank of the Lake | 1 | $250K | N/A |
| 5 | First Savings Bank | 1 | $1.4M | N/A |
| 6 | Community Bank & Trust-West Georgia | 1 | $217K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 3 | 0 | -- |
| NCNorth Carolina | 2 | 0 | -- |
| OHOhio | 2 | 0 | -- |
| FLFlorida | 1 | 0 | -- |
| KSKansas | 1 | 0 | -- |
| TNTennessee | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Small, undocumented system with concerning corporate financials, missing performance data, and unfavorable unit economics relative to initial investment.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · GDS International Co
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 audited financial statements are contained in Exhibit F but the statement tables (balance sheet, income statement) are not present/legible in the extracted text (blank pages in OCR). Franchisor is Costa Oil International, Inc. (DE corp, formed 10/21/2020), a new franchisor with audited OPENING financial statements for 12/31/2021, 1/31/2021, and 12/31/2020 only; no parent entity. No financial figures could be read.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 44 / 100 verdict
- 01MINOROnly 13 units system-wide with unknown growth trajectory — cannot assess market demand or expansion momentum
- 02MEDHigh initial investment ($131,750–$212,900) relative to disclosed net income ($68,331) yields only 32–52% ROI annually, creating extended payback period
- 03MINORMinimum weekly royalty ($150/week = $7,800/year) creates fixed cost burden even during low-revenue periods
- 04MINORFranchise fee ($54,900) represents 41% of minimum total investment — high front-loaded cost with no revenue offset
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Hanover, Pennsylvania |
| Jury trial waiver | No |
| Governing law | PA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 20 hrs
- Training location
- Hanover, PA
- Ongoing training
- Optional
- Time to open
- 15 mo
- From signing to launch
- Site selection
- Franchisee selects site subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- PM Attendant
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PM Attendant
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Costa Oil franchise?
The total investment to open a Costa Oil franchise ranges from $132K – $213K, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Costa Oil franchise owners earn?
According to Item 19 of the Costa Oil FDD, the average gross sales per unit is $453K. The median is $403K. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Costa Oil?
Costa Oil is franchised by Costa Oil International, Inc.. The FDD names no parent company. Source: FDD Item 1, 2022 filing.
What is Item 19 in the Costa Oil FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Costa Oil FDD and qualifies whose outlets they describe.
What is Costa Oil's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Costa Oil (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Costa Oil franchise locations are there?
As of their most recent FDD filing, Costa Oil has 13 total units in the United States.
Is Costa Oil a good franchise to buy?
FranchiseVerdict rates Costa Oil as a C-grade franchise with a verdict score of 44 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.