Costa Kapothanasis, the visionary behind Costa 10-Minute Oil Change, has successfully scaled his oil change franchise to over 50 locations and is well on his way to 100+ locations.
To say this guy is an inspiration to me would be an understatement. I recently had him on the pod to discuss how niching down ended up building him up, his journey from one location to where he is now, and why he thinks going against the grain of what everyone else was doing set him up for success.
This one goes out to all of you with big franchising hopes and dreams. Costa’s story is proof that anything is possible.
From Finance to Oil Change Entrepreneurship
Costa graduated from college with a degree in finance in 2010, in the midst of the Great Recession. He worked his way through a few investment firms, and his last gig was on an asset management team. At the time, he worked with a lot of small business owners, and he says that he also always had an “entrepreneurial streak” as a kid.
So, it should come as no surprise that he eventually became disenchanted with climbing the corporate ladder. While he was making good money at his day job, he says he had the nagging itch to start something that he could build from the ground up.
Fueled by this desire, he ventured into the oil change business, starting with a small quick lube in Harrisburg, Pennsylvania. After a bit of market research, Costa knew that he wanted to focus on oil changes exclusively. Many complaints about his competitors were centered around the fact that crooked mechanics were constantly trying to upsell their other services. Long wait times were another issue — comments like “Why am I waiting behind someone who needs new tires if all I need is an oil change?” were common. And so the “oil change only” concept was born.
Validation in Dillsburg, Pennsylvania, and expansion into the Chicago market solidified Costa's vision.
The Unexpected Launch into Franchising
Costa says that he never intended to go into franchising. He prides himself on staying on top of what other key players are doing in his industry, and he eventually found out that Jiffy Lube often signed 20-year leases.
In 2020, when he assumed several leases would be coming to an end, he decided to go after Jiffy Lube franchisees. His original plan was to take over their leased spaces with his own 10-Minute Oil Change locations.
He ultimately underestimated greedy landlords who were used to cashing Jiffy Lube checks — he laughs and notes that they wanted close to $10k per month in rent. With his oil change only model, there was no way to afford it.
So he determined that the best way forward would be to build his own buildings. In order to do that, he needed quite a bit of capital. He built two successful locations in Ohio and says that they “proved the model” for him. And so his idea to turn his company into a franchise was born.
Costa's growth trajectory surprised even him, with the awarding of 163 territories in just two years. The driving force behind such rapid expansion was not a mere numerical goal but finding partners who resonated with the brand's core values.
Something that I really respect about Costa is that he continues to break away from traditional franchise practices. He is extremely transparent with all of his practices. He has a YouTube channel that has become a platform for sharing internal processes, town hall meetings, and training sessions. He also has a Slack channel for open communication among all of his franchisees. His belief? Information is cheap. The real differentiator lies in genuine support within a franchise system.
I was incredibly inspired to make moves in my own service-based franchise MaidThis after speaking with him. For me, the key takeaway is that the future of franchising lies not in hoarding information, but in building robust support systems and fostering genuine connections with partners who share a common vision.
All franchisors should take note.
Photo by Dewang Gupta on Unsplash
This article was written by Neel from MaidThis Franchise, a remote-local franchise opportunity for people looking to escape the rate race and reach financial freedom. Learn more here.
