Costa Oil

The vendor opportunity at Costa Oil

Costa Oil is a small, Pennsylvania-based automotive services franchise with 24 total units, 15 of which are company-owned. For software vendors, this structure means the franchisor exerts direct operational control over the majority of locations. The average unit volume sits at $220,168, and franchisees pay a 6.5% royalty. While the system is not large, its concentrated ownership model means a single sale to HQ can cover most of the footprint.

Who controls software purchasing

Purchasing authority rests with the executive team in Pennsylvania. The FDD lists Constantine Kapothanasis as Chief Executive Officer and David Falzarano as Chief Operating Officer. Brandon Cornelius, Head of Franchise Support, is the operational lead likely to evaluate tools that affect franchisee workflows. Michael Abdy serves as Chairman. No parent company is on file; the brand appears independently owned. Vendors should direct enterprise-level conversations to the CEO and COO, with demonstrations tailored to the support team's daily needs.

Mandated and current tech stack

The 2024 Franchise Disclosure Document mandates two specific systems. Payroll runs on Gusto by Gusto, Inc., and the point-of-sale system is Square by Block, Inc. These mandates apply across both company-owned and franchised locations. Any software that integrates with or displaces these platforms must account for the franchisor's existing commitment. No other mandated or recommended technology is disclosed in the FDD.

Procurement, renewals, and timing

Costa Oil's procurement model is not detailed in Item 8 of the 2024 FDD. The document does not specify whether the franchisor uses a designated supplier program, an approved supplier list, or an open purchasing model. Initial franchise agreements run for 15 years. Renewal conditions require the franchisee to sign the then-current form of agreement, which may include updated technology mandates. Franchisees must also be in compliance with all obligations, renovate to current standards, pay a renewal fee, and sign a general release where law permits. No year-over-year unit growth data is available, so expansion-driven buying cycles cannot be projected.

How to read the Costa Oil FDD

The full 2024 Costa Oil FDD is embedded below. It was filed with state franchise regulators and contains the legal and operational disclosures that govern the franchise system. Software vendors should focus on Item 11 (the franchisor's obligations) for tech mandates, Item 8 for procurement restrictions, and Item 17 for renewal and transfer conditions that may trigger technology reviews. For a ranked target list of franchise systems matched to your software category, FranCloud can help.