HHO Carbon Clean Systems franchise

2022 filing · April 13, 2022

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HHO Carbon Clean Systems at a glance

A mobile engine maintenance business that cleans carbon out of gasoline and diesel engines on site.

The business

Industry: Auto repair; Also listed in mobile
Franchisor: HHO Franchise, LLC; The company that sells the franchises
Who runs it: Owner; An owner must run it day to day
Franchisor based in: Metropolis, Illinois

What you pay

Cost to open: $79K–$140K; Fee, build-out and opening working capital
Franchise fee: $30,000; Paid once, when you sign
Royalty: 10% + minimum; 10% of gross sales, paid weekly, subject to a weekly minimum
Brand fund: None now; Up to 2% of gross sales, not charged at present
Renewal fee: $10,000; When the agreement ends and you sign again
Agreement length: 8 years
Franchisor financing: None offered
SBA Franchise Directory: Listed; SBA-backed loans are possible

Where it is

US locations, 2021: 0; Franchised and company-owned
Franchised: 0
Company-owned: 0
Change in 3 years: 0; Franchised locations, 2019–2021

Support and records

Shares sales figures: No; Ask current owners what a location makes
Lawsuits disclosed: None
Bankruptcy disclosed: None
Latest filing: Apr 13, 2022; 2022 filing

From HHO Franchise, LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.

Estimate your costs Model the payback

Where it ranks

HHO Carbon Clean Systems among all franchises with the same figure.

Figure	HHO Carbon Clean Systems	Among all franchises
Cost to open, midpointHalfway between the low and high estimate	$109,200	Costs less than 86% of franchises
Franchise feePaid once, when you sign	$30,000	Lower than 72% of franchises
RoyaltyShare of sales paid to the franchisor	10%	Higher than 95% of brands with a set rate
US locationsFranchised and company-owned	0	Fewer than 97% of franchises

How much a HHO Carbon Clean Systems franchise costs

Opening one HHO Carbon Clean Systems costs an estimated $78,800 to $139,600. That covers the franchise fee and everything else needed to open, through the first months of working capital. It is one of the low-cost franchises.

The biggest costs are service vehicle ($5,100 to $39,000) and is made initial franchise fee ($30,000). Here is every line of the estimate as filed:

What it pays for	Low	High
Is Made Initial Franchise Fee	$30,000
Construction and Leasehold Improvements	$0	$2,500
Lease Deposits – 3 Months	$0	$1,500
Service Vehicle	$5,100	$39,000
Service Vehicle Initial Equipment Package	$23,000	$29,000
Service Vehicle Wrap and Equipment Installation	$2,000	$4,000
Computer, Software and Point of Sales System	$1,500	$3,000
Grand Opening Marketing	$3,000
Insurance Deposits – 3 Months	$1,200	$1,600
Travel for Initial Training	$1,500	$3,000
Professional Fees	$1,000	$2,000
Licenses and Permits	$500	$1,000
Is Made Additional Funds – 3 months	$10,000	$20,000
Total	$78,800	$139,600

Source: HHO Franchise, LLC, 2022 filing, page 16

HHO Carbon Clean Systems franchise fee

The franchise fee is $30,000. You pay it when you sign the franchise agreement.

Source: HHO Franchise, LLC, 2022 filing, page 10

Royalty and ongoing fees

Royalty	10% of gross sales, paid weekly, subject to a weekly minimum.
Brand or marketing fund	Up to 2% of gross sales, not charged at present.
NSF Check Fee of Failed Electronic Fund Transfer	5% of amount or $50 whichever is greater or maximum fee allowed by law
Renewal	$10,000
Additional Employee Initial Training	Our then current training fee, currently $400 per person per day.

The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.

Source: HHO Franchise, LLC, 2022 filing, page 11

Other fees as filed, from pages 12–13. The filing lists every fee, including late fees and audit costs.

Sales and earnings

No figures HHO Carbon Clean Systems does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.

Source: HHO Franchise, LLC, 2022 filing, page 39

How HHO Carbon Clean Systems compares

Of the 53 auto repair franchises on this site, HHO Carbon Clean Systems is the 7th cheapest to open and the smallest by number of locations.

Figure	HHO Carbon Clean Systems	Typical auto repair brand	Typical franchise
Cost to open, low end	$79K	$224K	$222K
Cost to open, high end	$140K	$534K	$477K
Franchise fee	$30K	$40K	$40K
Royalty	10%	6%	6%
US locations	0	92	21
Shares earnings figures	No	33 of 53	2,147 of 3,352

Typical is the median across the 53 brands in auto repair franchises; typical franchise, across every brand here.

Locations opened and closed

0 opened

0 closed or left

Franchised locations, last 3 years

2019

0 opened0 closed or left

0 (0)

2020

0 opened0 closed or left

0 (0)

2021

0 opened0 closed or left

0 (0)

Year	Franchised	Company-owned	Opened	Closed
2019	0 (0)	0	0	0
2020	0 (0)	0	0	0
2021	0 (0)	0	0	0

Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.

See which brands grew most in the fastest-growing franchises rankings.

More in the guides: auto repair franchise costs and franchise failure rates.

Source: HHO Franchise, LLC, 2022 filing, page 39

Source filing (2022, PDF)

Who owns HHO Carbon Clean Systems?

HHO Carbon Clean Systems franchises are sold by HHO Franchise, LLC. Its filing names no parent company.

From HHO Franchise, LLC’s 2022 filing, page 8.

Lawsuits and bankruptcy

Lawsuits and regulatory actions	None. The filing says no litigation has to be disclosed.
Bankruptcy	None. The filing says no bankruptcy has to be disclosed.

Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.

Source: HHO Franchise, LLC, 2022 filing, litigation on page 10, bankruptcy on page 10

Source filing (2022, PDF)