Gusto
Mandatoryof goods and services to operate your business. 24 Costa Oil FDD 2023 Payments by Designated Suppliers to Us We will receive a $300 payment for each Franchisee license purchase of Gusto software, whic
From the filings
HQ-led decisions
Costa Oil
Automotive servicesSoftware purchasing at Costa Oil is controlled by a small HQ team led by CEO Constantine Kapothanasis and COO David Falzarano. The franchise mandates Gusto for payroll and operates 24 locations (9 franchised, 15 company-owned), though third-party mapping identifies 73 total operator locations. This creates a modest but focused addressable market for vendors.
For software vendors selling into US franchise brands.
Live signals
Total units
24
9 franchised
Unit growth YoY
—
vs prior filing
AUV
$220K
Item 19, 2023
Royalty
6.5%
of gross sales
Ad fund
1%
national + local
Initial fee
$55K
per unit
Investment range
$199K–$338K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
7.5%of gross sales (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
Franchisor behaviours
What the franchisor requires
26 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 4 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
Through any current or future required software or hardware, we will have full independent access to your information that will be generated or stored in the system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee shall provide such periodic financial reports as Franchisor may require in the Manual or otherwise in writing, including: (i) a monthly profit and loss statement and balance sheet for the Business within 30 days after the end of each calendar month; (ii) an annual financial statement (including profit and…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Currently, we or our affiliates are approved suppliers for oil change reminder stickers, signage, branded apparel, and other assorted items.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor may change any such requirement or change the status of any vendor.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
3425Item 8
This predecessor’s affiliate’s revenue from all required purchases and leases of products and services by franchisees in the prior fiscal year was $3,425, which equaled .07% of its total revenues of 4,990,847.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
Franchisor may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
75Item 8
We estimate that the required purchases and leases of goods and services to operate your business are 75% to 85% of your total purchases and leases of goods and services to operate your business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
There may be fees for us to review or approve an alternate supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
to cancel or transfer to Franchisor or its designee all telephone numbers, post office boxes, directory listings, and Digital Marketing accounts used by Franchisee in connection with the Business or the Marks
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
Franchisee shall participate at its own expense in programs required from time to time by Franchisor for obtaining customer evaluations, reviewing Franchisee’s compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey…
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor may enter the premises of the Business from time to time at any reasonable time (including during normal business hours) and conduct an inspection.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
The franchise is granted for a specific location that must first be approved by us (the “Location”).
Marketing
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
After you open, you must spend a minimum of at least 2.5% of gross Revenues each month on marketing your business.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Franchisor, in the manner specified by Franchisor in the Manual or…
Operations
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware, that we specify.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
Currently, we require that you have a subaccount (under ours) for your Square merchant services.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We currently require you to pay royalty fees and other amounts due to us by ACH or other pre-authorized bank draft.
Must the franchisee participate in a gift card program?
YesFranchise agreement
At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Franchisor, in the manner specified by Franchisor in the Manual or…
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee must hire or engage sufficient number of personnel to service its volume of Business, and Franchisee must comply with any System Standards regarding staffing levels.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisee shall cause its personnel to comply with any dress attire, uniform, personal appearance and hygiene standards set forth in the Manual.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware, that we specify.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
Through any current or future required software or hardware, we will have full independent access to your information that will be generated or stored in the system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
Otherwise, we do not currently require additional training programs or refresher courses, but we have the right to do so.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
The Principal Operator shall use reasonable efforts to attend all in-person meetings and remote meetings (such as telephone or video conference calls) that Franchisor requires, including any national or regional brand conventions.
The filing answers no to 4 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
- Is a minimum grand opening advertising spend required?Item 7
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
The vendor opportunity at Costa Oil
Costa Oil is a small automotive services franchise with a 2024 FDD reporting 24 total units—9 franchised and 15 company-owned. Third-party operator mapping, however, identifies 73 Costa Oil locations across the U.S., all single-unit operators, with the heaviest concentration in Texas (16), Florida (10), North Carolina (6), Arizona (5), and California (4). Average unit volume sits at $220,168, and the royalty rate is 6.5%. While year-over-year unit growth is not disclosed, the system’s lean structure and mandated payroll system create a clear entry point for software vendors.
Who controls software purchasing
Decision-making authority rests with a compact HQ team. The FDD lists Constantine Kapothanasis as Chief Executive Officer, David Falzarano as Chief Operating Officer, and Brandon Cornelius as Head of Franchise Support. No CIO or CTO is named, so these executives are the likely buyers for any operational, financial, or franchise-management software. For the 15 company-owned locations, HQ controls purchasing directly. For the 9 franchised units, franchisees may have some autonomy, but the existence of a mandated system (Gusto) signals that HQ exerts strong influence over technology choices.
Mandated and current tech stack
The only technology explicitly mandated in the 2024 FDD is Gusto for payroll. No point-of-sale, inventory, scheduling, or CRM systems are mentioned, which means the remaining tech stack is either open or undisclosed. This gap represents an opportunity for vendors offering complementary solutions, especially those that integrate with Gusto or fill operational voids in a quick-lube automotive service environment.
Procurement, renewals, and timing
Item 8 of the FDD (procurement restrictions) is not extracted, so the franchise likely operates an open procurement model—franchisees may select vendors, possibly with HQ approval. Renewal terms are 15 years, contingent on advance notice, full compliance with all agreements, renovation to then-current standards, signing the then-current franchise agreement, and a general release. These renovation requirements could force technology refreshes, creating natural contract windows. However, with no disclosed unit growth and a small system, sales cycles may be sporadic and relationship-driven.
How to read the Costa Oil FDD
The full 2024 Costa Oil Franchise Disclosure Document is embedded below. It was filed with state franchise regulators and contains the legal and financial disclosures that govern the franchise relationship. Software vendors should focus on Items 8 (procurement), 11 (franchisor assistance), and 17 (renewal) to understand where their solutions fit. For a ranked target list of Costa Oil locations and decision-maker contact data, talk to FranCloud.
Questions vendors ask
Costa Oil, answered from the filing
The buying center is small: CEO Constantine Kapothanasis and COO David Falzarano are the likely decision-makers for any software that touches operations or finance. Brandon Cornelius (Head of Franchise Support) may influence franchisee-facing tools.
The 2024 FDD mandates Gusto for payroll. No POS or other operational systems are mandated, leaving an opening for vendors in those categories.
Costa Oil has 24 total franchise units (9 franchised, 15 company-owned). Third-party operator mapping identifies 73 total locations, all single-unit operators, concentrated in Texas, Florida, North Carolina, Arizona, and California.
The 2024 FDD does not disclose a designated supplier program (Item 8), suggesting an open procurement model where franchisees may choose vendors, subject to HQ approval.
With a 15-year initial term and no recent unit growth data, contract windows are unpredictable. Renewals require compliance and renovation to current standards, which could trigger tech upgrades.
The 2024 Costa Oil FDD is filed with state franchise regulators. You can view it directly in the embedded PDF viewer below this page.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
Tell me when this brand refiles.
We’ll email you the moment Costa Oil files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
73 operators run 73 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit73
Top states by locations
| TX | 16 |
|---|---|
| FL | 10 |
| NC | 6 |
| AZ | 5 |
| CA | 4 |
Ownership
The portfolio behind Costa Oil
unknown of costa holdings.
Related Automotive services brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.