🍟 10/25/2021 – Costa Oil And Spiffy

Costa Oil

Costa Oil Franchise Information: 2021 Cost, Fees and Facts - Opportunity  for Sale

Fast Facts

Background

  • Founded in 2017, franchising since October 2020
  • 13 corporate location as of 2020, zero franchised
  • Provides 10 minute oil changes with speed & quality

Fees + Investment

  • Royalty: 6.5% of gross sales
  • Brand Fund: 2% of gross sales
  • Franchise Fee: $54,900
  • Initial Investment: $128,250 – $196,900

Financial Performance

  • The following table contains financial performance data from 4 existing affiliate outlets that are standalone locations, open for the full year 2020, and have a total operating time of longer than 24 months

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 of the longevity of a model that depends on oil changes given the rise of electric vehicles.

Recent Press


Spiffy

Car Wash Operator, ChannelAdvisor CEO Launches Spiffy App for Mobile Car  Washes

Fast Facts

Background

  • Founded in 2014, franchising since 2020
  • 24 company owned locations, 8 franchised as of 2021
  • Schedule a cleaning via their website or app, and they come to you to clean your car

Fees + Investment

  • Royalty: 7% of gross sales
  • Brand Fund: 2% of gross sales
  • Franchise Fee: $40,000
  • Initial Investment: $91,300 – $149,150

Financial Performance

  • The table below represents performance data from 17 existing affiliate outlets. Note that all 17 reporting units have been operating for longer than 1 year, but only two have been operating for 6+ years

The Wolf’s Take  🍟

By year 2, the average affiliate was producing gross revenue 3x times the initial investment, and 6x by year four!

Of course there are various costs to consider (I’d guess labor i.e. your employees who wash the cars would be an expensive line item), but this is an interesting business model that could capture demand from the growing number of consumers who value convenience over affordability.

Recent Press

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