HHO Carbon Clean Systems
Bottom line
- Total investment $108K – $185K including a $45K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one HHO Carbon Clean Systems unit return on the cash you put in?
Unlevered ROIC · per unit
51%
In Yale's "attractive" band (30–60%)
Overview
About
HHO Carbon Clean Systems franchisees operate a mobile/shop-based automotive service that uses hydrogen-based cleaning technology to remove carbon deposits from vehicle engines, fuel injectors, and intake valves. Franchisees manage customer acquisition (targeting mechanics, dealerships, fleet operators), perform diagnostic testing and cleaning services, and maintain specialized equipment. Revenue depends on local market adoption of the service and repeat business from B2B automotive clients.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit count, missing financial performance data, and high fee structure create significant uncertainty around franchisee profitability and system viability.
Score breakdown · what drove the 62 / 100 rating
- 01MINORUnit count declining 6.7% YoY (15 units total) suggests system contraction and weak franchisee recruitment/retention
- 02MEDNo average revenue or net income disclosed in FDD Item 19 — impossible to validate ROI claims or unit economics
- 03MINORHigh initial investment ($108k-$185k) paired with declining unit count increases franchisee failure risk
- 04MINORMinimum monthly royalty fee requirement (amount unspecified) could strain cash flow, especially for new units
- 05MEDRoyalty structure of 6-8% plus minimum fee is aggressive for a specialized B2B service with limited market penetration
- 06MEDOnly 15 franchised units indicates immature/niche system with limited brand recognition and marketing leverage
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
HHO Carbon Clean Systems · FDD (2025) PDF