Costa Oil Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$54,900
Investment required
$156,000 - $1,875,000
Royalty fee
6.50%

Costa Oil: A Leader in Rapid Automotive Service

Costa Oil, based in Hanover, Pennsylvania, is an automotive service chain known for its efficient, no-appointment-required, drive-through oil changes that take just 10 minutes. In addition to oil changes, they offer a variety of car maintenance services.

Founded in 2014, Costa Oil began franchising in 2020. By 2022, the company had opened 18 locations across the US, with 15 being franchise-owned.

With a focus on exceptional customer service and an innovative business approach, Costa Oil has become a popular choice for motorists seeking convenient and quick oil changes. The company is rapidly expanding, with more than 30 locations nationwide as listed on its website.

Costa Oil presents a lucrative opportunity for potential entrepreneurs and franchise owners, featuring a low-cost entry and a consistent revenue stream.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Kiosk with Land and Improvements Leased (Low - High) Conversion of Existing Building Leased (Low - High) Kiosk with Land and Improvements Purchased (Low - High)
Franchise Fee $54,900 - $54,900 $54,900 - $54,900 $54,900 - $54,900
Grand Opening Onsite Support Fee $5,000 - $5,000 $5,000 - $5,000 $5,000 - $5,000
Real Estate Commission Fee $0 - $8,000 $0 - $8,000 $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 $1,500 - $3,500 $1,500 - $3,500
Computer Hardware and Software $1,000 - $2,500 $1,000 - $2,500 $1,000 - $2,500
Office Supplies $250 - $500 $250 - $500 $250 - $500
Signage $3,500 - $15,000 $3,500 - $15,000 $3,500 - $15,000
Furniture and Equipment $7,500 - $15,000 $7,500 - $40,000 $7,500 - $15,000
Utilities $500 - $2,000 $500 - $2,000 $500 - $2,000
Tools $1,000 - $2,000 $1,000 - $2,000 $1,000 - $2,000
Inventory & Supplies $12,000 - $16,000 $12,000 - $16,000 $12,000 - $16,000
Grand Opening Advertising $5,000 - $10,000 $5,000 - $10,000 $5,000 - $10,000
Insurance $1,000 - $3,500 $1,000 - $3,500 $1,000 - $3,500
Licenses and Permits $100 - $3,000 $100 - $3,000 $100 - $3,000
Legal and Accounting $1,500 - $4,000 $1,500 - $4,000 $1,500 - $4,000
Site Plan Approval $12,500 - $20,000 - $12,500 - $20,000
Building Permit Approval $20,000 - $35,000 - $20,000 - $35,000
Additional Funds – 6 Months $50,000 - $100,000 $50,000 - $150,000 $50,000 - $100,000
Land and Improvements Purchased - - $480,000 - $1,575,000
Total $198,750 - $338,400 $155,750 - $414,900 $657,250 - $1,874,900

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Number of units

2023
Franchised units

0

0

9

Company-owned units

12

13

15

Total units

12

13

24

Franchise Disclosure Document

Training 

Costa Oil offers an extensive training program for new franchisees, designed to cover all essential aspects of franchise operations. Key components of the training program include:

New Franchisee Training: Mandatory for the franchisee, their principal operator, and any general manager, this training can accommodate up to three individuals per franchise. It ensures that key personnel are equipped with the skills and knowledge necessary to manage the franchise effectively.

Training Program Structure: The training is thorough, combining classroom instruction with on-the-job training. Held at the corporate headquarters and possibly through virtual sessions, it covers a wide array of critical topics. These include an introduction to Costa Oil, software/POS training, management strategies, marketing, customer satisfaction, bookkeeping, key performance indicators, hiring and recruiting, employee scheduling, labor management, and risk management and compliance.

On-Site Opening Assistance: For an additional fee, Costa Oil provides on-site opening training and assistance. This hands-on support during the franchise's initial operations ensures a smooth and successful launch.

Territory Protection

Costa Oil provides territory protection for its franchisees by granting each an exclusive Marketing Area. In this designated area, the franchisor commits not to establish any other company-owned or franchised outlets that offer similar goods or services.

The exclusive territory typically encompasses a population of approximately 50,000 people or a three-mile radius, with specific boundaries determined by geographical or political markers. This exclusivity is assured regardless of sales volume or market penetration, guaranteeing franchisees a secure operational space without competition from other Costa Oil locations.

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