How Much Does a Costa Oil Franchise Cost?
Data from the 2022 Franchise Disclosure Document
Investment Summary
Total Investment
$132K – $213K
Franchise Fee
$55K
Royalty
6.5%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Costa Oil is $55K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Costa Oil franchise requires a total investment of $132K – $213K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $23K to $28K.
Ongoing Costs
Beyond the initial investment, Costa Oil franchisees pay ongoing fees. The royalty fee is 6.5% of gross sales (Gross Revenue). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $300.
Net Worth & Liquid Capital Requirements
Costa Oil requires working capital of $23K – $28K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Costa Oil's Item 19 financial performance representation:
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Costa Oil?
SBA Loans Issued
10
Default Rate
N/A
The SBA (Small Business Administration) tracks loan performance for franchise brands. Costa Oil has 10 SBA-backed loans on record. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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