Costa Oil Franchise – Costs, Fees & Earning Stats
Net Worth Requirement:
Units in Operation:
$128,250 - $196,900
Costa Oil is a popular choice for drivers looking for a quick and convenient oil change. This is a strong business model that was founded in 2014. The company is growing across the United States.
Costa Oil provides 10-minute oil changes with speed & quality while offering a unique opportunity for entrepreneurs.
In this article, we will talk about what you need to know about the costs, fees, and earning potential of a Costa Oil franchise.
Is Costa Oil a franchise or chain?
Costa Oil is an oil change franchise, though it does have corporate-owned stores.
Costa Oil 10 minute oil change offers franchising opportunities for those interested in opening their own Costa Oil location. Franchisees must meet certain criteria. As of October 2020, they had only a handful of Costa Oil company-owned locations. They offer a comprehensive training program for new franchisees, as well as ongoing support to help them run their businesses successfully.
How many Costa Oil franchises are there?
Costa Oil is an oil change franchising business that has been franchising since October 2020. According to the website, Costa Oil has 68 locations, most of which are in Ohio and Texas.
Costa Oil has become a leading provider of automotive oil changes and other car maintenance services. Franchisees benefit from the company’s brand name and reputation for service. As the company continues to grow, there will be even more opportunities for entrepreneurs to join the Costa Oil franchise family.
How much does a Costa Oil franchise cost?
The cost of a Costa Oil franchise varies depending on a number of factors, including the location of the franchise and the size of the franchise. However, the average cost of a Costa Oil franchise is estimated to be between $142,500 – $196,900.
The franchise cost includes comprehensive and intensive training and great support with the use of Costa Oil’s trademarks and branding, and access to Costa Oil’s proprietary software system, signage, initial inventory, working capital, equipment, and business insurance. Costa Oil does not offer to finance these startup costs, but Costa Oil can help find financing so potential franchisees will have access to potential financing options.
Additionally, franchisees are responsible for paying an ongoing royalty fee to Costa Oil, which is 6.5% of gross sales, and a brand fund fee of 2% of gross sales.
For more information on the costs and requirements associated with opening a Costa Oil franchise, interested parties can contact the company directly or visit their website.
What is the Costa Oil franchise fee?
The Costa Oil franchise fee is $54,900. This fee includes being able to use the Costa Oil name and logo and initial training. The Costa Oil franchise fee is an initial investment that gives you the right to operate a Costa Oil gas station.
In addition to the franchise fee, you will also need to pay for signage, equipment, and inventory, which is included in the initial Costa Oil investment. Costa Oil is a rather low-cost franchise opportunity with a proven business model.
How much do Costa Oil franchise owners make?
Many aspiring business owners dream of owning their own franchise. But before taking the plunge, it’s important to do your homework and make sure you understand the financial commitment involved. So, how much do Costa Oil franchise owners make?
Here are the financials for 4 locations open for the full year of 2020 that have been operating for at least 24 months.
The highest gross profit was $298,009 with the lowest being $77,203. The average was $192,792 and the median was $197,978.
As far as net income is concerned, the highest was $219,162 while the lowest was $6,971. The average was $124,787 and the median was $136,507.
Of course, this figure can vary depending on a number of factors, such as the location of the franchise, the size of the operation, and the owner’s level of experience.
According to the company, they aren’t affiliated with any of the oil companies, while some of their other quick lube companies are.
Although Costa Oil is a relatively new company in the quick lube industry, they do operate profitable centers and have strong customer service.
The Wolf’s Take 🍟
After subtracting the royalty/brand fees from the net income, you’re left with a pretty healthy return given that the investment is a little below $200k on the high end.
This brand (like most) would be a multi-unit play to achieve some serious cash flow through scale, but there’s no doubt that the affiliate locations are performing well.
A question to consider is the longevity of a model that depends on oil changes given the rise of electric vehicles.
The Costa Oil franchise is an example of a low-cost opportunity with a proven track record of success. Earnings will vary depending on factors such as location and customer base. For those interested in owning their own franchise, Costa Oil is worth consideration.
This is not investment advice. As always, do your own research and your own due diligence before investing and realize any investment may go to zero.