From the filings

HQ-led decisions

Costa Oil

Automotive services

Costa Oil runs 24 US locations — 9 franchised, 15 company-owned — per the 2024 FDD. Item 8 mandates Gusto for every location, the only technology system named in the filing, and the majority company-owned footprint keeps most purchasing at headquarters.

For software vendors selling into US franchise brands.

FDD key facts2024

FDD year	2024
Franchise term	15 years
AUV (Item 19)	$220K
Royalty	6.5% component; full terms unconfirmed
Ad fund	1%
Addressable units	24
Decision level	HQ
Tech landscape	Mandated tech stack
Investment range	$199K–$338K
Procurement	Approved supplier
Tech fee	$200/mo
Company-owned units	15

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Read the full FDD

Live signals

Total units

9 franchised

Franchised outlet growth

—

Item 20, last two year-ends

AUV

$220K

Item 19, 2023

Royalty

6.5% component; full terms unconfirmed

percentage component

Ad fund

percentage component

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

Ordinary royalty terms

6.5% component; full terms unconfirmed

Complete royalty terms are not confirmed for the selected filing.

Recorded percentage components

These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.

1recorded components (FY2024)

15% reference

Ad fund 1%

Mandated & recommended tech

The systems vendors compete with

1 technology requirement is recorded in this filing. A required choice lists alternatives for one obligation. Read each cited clause for its conditions.

GustoGusto

Mandatory

PayrollItem 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. 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, which you will use for your payroll processing. We will receive a rebate from our approved marketing services supplier equal to 20 to 30% of all marketing services purchased by franchisees.

Franchisor behaviours

What the franchisor requires

27 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 3 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?

Yes

Item 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?

Yes

Franchise 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?

Yes

Item 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?

Yes

Franchise 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?

3425

Item 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?

Yes

Franchise 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?

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Franchise 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.

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

Franchisor may supplement, revise, or modify the Manual, and 23 Costa Oil FDD 2023 Franchise Agreement Franchisor may change, add or delete System Standards at any time in its discretion.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 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?

Yes

Item 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?

Yes

Franchise 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Franchise agreement

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Franchise 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?

Yes

Franchise 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?

Yes

Item 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?

Yes

Item 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?

Yes

Item 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?

Yes

Franchise 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 operates under parent Costa Holdings.

Who controls software purchasing

CEO Constantine Kapothanasis and COO David Falzarano lead the executives named in Item 2, alongside Head of Franchise Support Brandon Cornelius and Chairman Michael Abdy. With the majority of locations company-owned, headquarters carries the buying decision for most of the system, and sets the standard for the franchised minority too.

Tech named in the FDD, and what is actually required

Item 8 mandates Gusto for every location — the only system named in the filing, and it is required.

Procurement, renewals, and timing

Item 8 runs an approved-supplier-list model: purchases must come from the franchisor, its designee, or approved suppliers, or meet franchisor specifications, and the franchisor can require designated sources at will. Oil change stickers specifically must be bought from Costa Oil or an affiliate. Renewal requires advance notice, substantial compliance with the franchise agreement, a remodel to current standards, and signing the then-current agreement and personal guaranty for another 15-year term.

How to read the Costa Oil FDD

The FDD was filed with state franchise regulators in 2024 and makes a financial performance representation under Item 19. Read the full filing in the embedded viewer below, and talk to FranCloud for a ranked list of similar targets.

Ordinary royalty terms

Complete royalty terms are not confirmed.

Questions vendors ask

Costa Oil, answered from the filing

CEO Constantine Kapothanasis and COO David Falzarano lead the team named in Item 2. With 15 of 24 locations company-owned, headquarters carries the buying decision for most of the system directly.

Item 8 mandates Gusto for every location — the only technology system named in the filing, and it is required.

24 locations — 9 franchised, 15 company-owned — with a $220,168 average unit volume, per the 2024 filing.

An approved-supplier list under Item 8. Purchases must come from the franchisor, its designee, or approved suppliers, with oil change stickers specifically required from Costa Oil or an affiliate.

Renewal requires advance notice, substantial compliance with the franchise agreement, and a remodel to current standards ahead of another 15-year term.

Filed with state franchise regulators in 2024. Use the embedded PDF viewer below to read the full filing.

Source

Read the filing itself

Read the original document for the filing figures and their terms, page by page. Buy the original PDF to download, search, and annotate it.

Costa Oil2024 FDDView only

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The brands you can actually sell into, from the filings.

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Operator footprint

Who runs the locations

51 operators run 51 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit51

Top states by locations

TX	12
FL	7
NC	4
AZ	4
CA	3

Ownership

The portfolio behind Costa Oil

Parent company: Costa Holdings, LLC.

Related Automotive services brands

Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.