Costa OilFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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 $291K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $132K – $213K
- 15th pct Automotive
- Avg gross sales
- $291K
- 2nd pct Automotive
- Royalty
- 6.5%
- 18th pct Automotive
- Units
- 13
- 10th pct Automotive
- SBA default
- N/A
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
40% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $132K – $213K including a $55K franchise fee, 6.5% ongoing royalty.
- Average unit revenue of $291K/year, with an estimated 40% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 45/100.
Item 1 · who you're contracting with
The Franchisor
- 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
- $0
- Most recent fiscal year
Overview
About
Costa Oil franchisees operate fuel/petrol stations or convenience retail operations, likely including fuel sales, automotive products, and ancillary retail. Day-to-day responsibilities typically include inventory management, customer service, payment processing, compliance with fuel regulations, and maintaining equipment.
- CEO
- Constantine Kapothanasis
- Headquarters
- PA
- Founded
- 2020
- FDD year
- 2022
- States available
- 4
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$48K
16.5% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $132K – $213K
- Better than avg vs category
- Liquid capital req'd
- $23K – $28K
- Better than avg vs category
- Franchise fee
- $55K – $55K
- Better than avg vs category
- Royalty
- 6.5%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
- Payback period
- 2.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $10K |
| Renewal fee | $14K |
| Total fee load | 8.5% of rev |
Financial Performance
- Avg gross sales
- $291K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $68K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 39.7%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Affiliate Owned
- Sample size
- 14 units
- vs category median 70 · small
- Range (low → high)
- $135K→$654K
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 221 Automotive brands
vs Automotive averages
How Costa Oil Compares
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
- 0.0%
- Company-owned
- 13
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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 · 23 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.
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
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Costa Oil's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 3-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Small, undocumented system with concerning corporate financials, missing performance data, and unfavorable unit economics relative to initial investment.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · GDS International Co
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 45 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify if $68,331 average net income is realistic or survivorship-biased
- 02MINOROnly 13 units system-wide with unknown growth trajectory — cannot assess market demand or expansion momentum
- 03HIGHGoing Concern status is FALSE — suggests potential financial instability at corporate level
- 04MEDHigh initial investment ($131,750–$212,900) relative to disclosed net income ($68,331) yields only 32–52% ROI annually, creating extended payback period
- 05MINORMinimum weekly royalty ($150/week = $7,800/year) creates fixed cost burden even during low-revenue periods
- 06MINORFranchise 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Marketing Area |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| 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 |
| Governing law | Pennsylvania |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 20 hrs
- Training location
- On-site at franchisee's restaurant
- Ongoing training
- Required
- Time to open
- 15 mo
- From signing to launch
- POS system
- PM Attendant
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PM Attendant
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Costa Oil · FDD (2022) PDF
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 $291K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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, including 0 franchised units and 13 company-owned units.
Is Costa Oil a good franchise to buy?
FranchiseVerdict rates Costa Oil as a A-grade franchise with a risk score of 45 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.