Costa Oil Bets on Trust, Simplicity and Secondary Markets as Franchise Demand Grows

As franchise candidates grow more cautious about cost, credibility and long-term upside, Costa Oil is positioning itself as a lower-barrier automotive concept built on trust, operational discipline and strong performance in overlooked markets. This strategy is fueling continued franchise demand heading into 2026.

“Most people who have been through a quick-lube experience have a story where they felt treated unfairly or taken advantage of,” said Brandon Cornelius, chief operating officer of Costa Oil. “That’s where the distrust comes from. For us, the difference shows up the moment a customer walks in. There’s no pressure.”

Costa Oil’s differentiation is less about flashy innovation and more about removing friction for customers and operators alike. After opening its first location in 2014, the brand began franchising aggressively in 2021. It operates with a simplified, oil-change-focused model. Rather than chasing high ticket averages or layered service menus, Costa Oil centers its offering around fast, stay-in-your-vehicle oil changes with transparent pricing. That approach, Cornelius said, has resonated with both consumers and franchisees.

“When I joined Costa, I strongly connected with the idea that you shouldn’t have a panic attack before getting your oil changed,” Cornelius said. “We want the experience to be simple and affordable. We position ourselves as a retail company first and an automotive company second, which means we genuinely care about the customer experience.”

That customer-first mindset carries over to the franchise model itself. Costa Oil’s investment profile is designed to remain accessible, particularly in secondary and tertiary markets where buildout costs, rent and land acquisition are often lower. The brand’s kiosk-style locations typically require less than 1,000 square feet, keeping overhead manageable while allowing franchisees to drive volume through pricing and convenience.

Today, Costa Oil operates 18 company-owned locations and 56 franchised units, with many franchisees expanding into multi-unit ownership. According to Cornelius, that internal validation is one of the strongest signals of system health.

“We have franchisees who are in year three, and soon year four, with solid P&Ls, consistent month-over-month growth and strong year-over-year performance,” he said. “That makes it much easier to demonstrate a proven model.”

Cornelius joined 1851 Franchise Publisher Nick Powills on an episode of “Meet the Franchise” to discuss trust in automotive service, Costa Oil’s simplified operating model and why secondary markets are driving franchise growth. A transcript of Cornelius’ interview with Powills has been provided below. It has been edited for brevity, clarity and style.

Nick Powills: What’s your franchise backstory? How did you fall into franchising?

Brandon Cornelius: It’s a long story, but the short version is that I had prior experience in the quick-lube industry. I worked for two major brands and spent close to 12 years with them. Eventually, I reached a point where I wanted to make a change. My family is based in Hanover, Pennsylvania, so I was looking to move back and get back into the industry. That’s when I found Costa.

I started as an associate franchise coordinator, helping connect franchisees with our clients. From there, I moved into the next role, then the next, and continued growing into franchising full time. I had worked with franchised brands before, but for the past five years, I’ve been fully immersed in franchising.

Powills: How do you identify real differentiation and decide that this brand is the best — especially after working for two others you would have also called great?

Cornelius: For me, it comes down to the philosophy behind the brand and what you want it to mean to people. Our differentiation shows up in how those beliefs come together day to day. When I joined Costa, I strongly connected with the idea that you shouldn’t have a panic attack before getting your oil changed.

We want the experience to be simple and affordable. We position ourselves as a retail company first and an automotive company second, which means we genuinely care about the customer experience. We don’t push services people don’t need just to drive revenue. The goal is to bring more people through the door, let them experience our service and our employees, and have them leave thinking, “I can’t believe I got that level of service from an oil change.”

You’re exactly right with the barbershop analogy. We actually use that comparison during discovery days. We see the same customers repeatedly. Our team members know them — asking about their families, checking in, building real relationships. Ultimately, it comes down to what you believe a brand can be. Our mission is to be synonymous with fast, friendly, stay-in-your-vehicle oil changes that make an impact not just in the market, but in the community.

Powills: Why do you think the industry has such a bad reputation — not just your segment, but automotive overall? 

Cornelius: Most people who have been through a quick-lube experience have a story where they felt treated unfairly or taken advantage of. That’s what I hear most often. They’ll say, “I went here and felt this way,” or “I bought this, and I didn’t really understand why.”

That’s where the distrust comes from. For us, the difference shows up the moment a customer walks in. There’s no pressure. They sit back, relax, and we perform the oil change. We don’t upsell. We do offer ancillary products — air filters, high-mileage additives and items that genuinely benefit the vehicle — but customers never feel like they’re being pushed into something they don’t need. I focus on education over sales.

When I train our teams and talk to franchisees about those products, the message is simple: explain why something could help the customer. If it doesn’t feel right for them, that’s fine. Especially in today’s economy, not everyone can afford extras, and we never make people feel uncomfortable about that. We want customers to leave having had a great experience. We’ll explain why an air filter matters, but we’re not going to guilt them into buying it. That approach is why people come back.

Powills: How do your franchisees perform?

Cornelius: They’re performing very well, especially this year. We made a major push around training and ensuring franchisees fully understood our model — and why we don’t follow the multi-care approach, which we believe doesn’t work in our segment.

We are oil-change focused, with a limited number of complementary products. In March, we updated our company-owned locations, and many franchisees followed suit. We moved to a $50 full-synthetic-only model. It’s simple. Fifty dollars covers up to five quarts and the filter, which is industry standard. If a vehicle takes six quarts, it’s $10 more. Sixty dollars plus tax and the customer is done. The pricing is easy to explain and easy to trust.

That lower entry price matters. Many customers are used to paying $100 to $120 elsewhere. When they come to us at $50, they often have room in their budget to afford an air filter or wiper blades — products that actually improve safety and performance.

Even at that price point, we’re able to drive a higher average ticket while staying within what customers are comfortable paying. At the same time, our overhead is significantly lower than many competitors. Some brands require buildouts approaching $1.5 million. We’re a fraction of that. Because our costs are lower, franchisees don’t need unrealistic margins to succeed. Higher car counts, fair pricing and education-based selling allow them to build strong AUVs without compromising trust.

Powills: Ballpark, what does it cost to get in?

Cornelius: On the high end, excluding the building, it’s around $175,000. That includes the franchise fee, FF&E and related costs. The building cost varies by market. Our model uses a kiosk-style building — about 890 square feet with two bays. Franchisees can either excavate and pour pits or use drop-in pits, which are fairly standard in the industry. Buildout costs typically range from about $400,000 to $575,000, depending on site conditions.

Powills: Are franchisees buying land or leasing?

Cornelius: Both. It really depends on the franchisee. Some want to own the land and the building. Others prefer to lease. Earlier on, we also offered a leaseback option through a partner that would purchase the land and building and lease it back to the franchisee, which helped reduce upfront costs.

Powills: How many units do you have today?

Cornelius: We have 18 company-owned locations and 56 franchised locations.

Powills: I’m intrigued by the land ownership piece. The challenge with an FDD is that it can’t always tell the full story. But if a franchisee owns the land, they’re essentially building a business that pays down the real estate loan. Eventually, they can exit the franchise and still own the land, or sell both. That creates two paths to value. In a high-traffic business like yours, that can be compelling.

Cornelius: That’s true, but our model works a bit differently because our price point is lower than most competitors. We perform especially well in secondary and tertiary markets. One of our newer locations is in Reed City, Michigan, which has a population of about 2,500. That store serves multiple surrounding towns. Instead of driving 30 to 45 minutes to a larger city, customers are willing to drive 15 to 20 minutes to us because we’re on the way.

That’s where we thrive. Secondary and tertiary markets are really our sweet spot. We also have locations in larger cities — our flagship store is in Harrisburg, Pennsylvania — and those perform well, too. Last year, we opened 26 locations, many in the Midwest. These hometown markets rally behind the brand. They like the pricing. They like the local feel, even though we’re a franchise.

We’re very pro-business-owner. We don’t over-mandate. We want franchisees to operate as entrepreneurs. There are guardrails, of course, but we trust them to know their markets better than we do. That flexibility is a big part of the franchisee experience.

Powills: Sometimes strong performance and perception can push franchise buyers into unexpected decisions. In the example you gave, land and buildout costs — or rent — are typically lower in smaller markets than in major metros.

AUVs tend to be well protected, and in many cases, sales increase as you move closer to higher-traffic or more densely populated areas. I’ve seen gym franchises launch in dense urban markets — New York City, for example — where units perform exceptionally well. Then they expand outward, and even if profitability remains strong, franchisees start comparing growth and asking why another unit’s sales are higher.

That creates perception challenges as a system grows. But given the number of locations you’re opening, it’s clearly snowballing. And that usually means one thing: validation is strong. If franchisees weren’t meeting expectations, new buyers wouldn’t keep coming in.

Cornelius: I agree completely. I remember the early days when we were selling franchises and hosting discovery days every month. We held many of them in Cleveland, where we had two strong company-owned locations that served as model stores. Early on, validation calls were critical. Now, we have franchisees who are in year three, and soon year four, with solid P&Ls, consistent month-over-month growth and strong year-over-year performance. That makes it much easier to demonstrate a proven model.

Costa opened its first location in 2014, and we began franchising aggressively in 2021. By then, we had years of operational data to show that the model works. We keep it simple. In our industry, the multi-care approach is often referred to as “death by a thousand cuts.” We’ve shown that you can build a hometown, mom-and-pop-style business with low overhead and strong margins. We’re not chasing $150 ticket averages, but franchisees are still generating healthy returns and continuing to grow. The next phase is expanding that momentum and bringing more owners into the system as we scale across the U.S.

Powills: How many openings are you planning for 2026?

Cornelius: We’re seeing strong momentum from multi-unit operators. Many franchisees who started with one or two locations are opening additional units. For 2026, I’m targeting 20 to 25 openings. That’s our sweet spot. If we can consistently open 20 to 25 locations a year, that’s a win.

Powills: For anyone watching, what are the final takeaways you want them to know about the franchise opportunity?

Cornelius: We offer an affordable franchise fee, and for owners who want to transition into a semi-absentee or even absentee role over time, this can be a strong fit. There are many people in the automotive industry who want to grow a business while changing how customers experience it, and we provide a path to do that. It’s a low barrier to entry, and my role as COO is focused entirely on supporting operations and franchisees. When I visit stores, I’m still doing oil changes myself. The same goes for our leadership team — when we’re on-site, we’re either in the pit or working alongside the team.

This is a community-centric business. If that’s something you’re interested in, you can visit costaoil.com — Costa Oil with an “s” — and click the Franchising tab to learn more. We’ll be reopening franchising opportunities in 2026.

Powills: If you asked me to change an oil, I couldn’t do it — which is exactly why people like you matter.

Cornelius: We want to be there for the mom driving kids to soccer practice, the college student juggling classes, or anyone with a busy schedule. Our goal is to make oil changes easy, affordable and painless. Especially in today’s economy, people are keeping their vehicles longer. They’re not buying new cars as often, and maintaining what they have matters more than ever.

Powills: Brandon, thanks again for spending time with us. I really appreciate it. 

Watch the episode above or on YouTube.