HHO Carbon Clean SystemsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HHO Carbon Clean Systems franchise requires a total initial investment of $108K – $185K, including a $45K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $108K – $185K
- 38th pct Cleaning & Ma…
- Avg gross sales
- N/A
- 56th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 15
- 25th pct Cleaning & Ma…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 14 to 10 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
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.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- HHO Franchise, LLC
- CEO title
- Chief Executive Officer
- Jared English
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- KY
- HQ
- 3060 John L. Puryear Drive, Paducah, Kentucky 42003
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $219K
- vs $276K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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.
- CEO
- Jared English
- Headquarters
- KY
- Founded
- 2020
- FDD year
- 2025
- States available
- 12
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Construction and Leasehold Improvements | $0 | $3K | |
| Storage Unit | $0 | $750 | |
| Service Vehicle | $5K | $41K | |
| Service Vehicle Initial Equipment Package | $31K | $45K | |
| Service Vehicle Equipment Installation | $4K | $6K | |
| Service Vehicle Wrap | $3K | $4K | |
| Software and Business Management System | $2K | $3K | |
| Start-Up Marketing | $3K | $6K | |
| Insurance Deposits - Three Months | $3K | $5K | |
| Travel for Initial Training | $2K | $3K | |
| Professional Fees | $1K | $2K | |
| Licenses and Permits | $500 | $1K | |
| Vehicle Maintenance | $500 | $750 | |
| Additional Funds - Three Months | $10K | $21K | |
| Total initial investment | $108K | $185K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $108K – $185K
- Better than avg vs category
- Liquid capital req'd
- $10K – $21K
- Better than avg vs category
- Franchise fee
- $45K – $280K
- Better than avg vs category
- Royalty
- Greater of 6% to 8% of Gross Sales or Minimum Monthly Roy…
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Greater of 6% to 8% of Gross Sales or Minimum Monthly Royalty Fee Requirement |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $275 |
| Training fee | $400 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Cleaning & Maintenance averages
How HHO Carbon Clean Systems Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 15
- Opened
- 3
- Last reporting year
- Closed
- 4
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 26.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (yr3)
- -6.7%
- Net unit change last year
- 3-yr CAGR
- +40.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
- Termination rate
- 26.7%
- Franchisor-initiated terminations
- Ceased ops
- 26.7%
- Units that stopped operating
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $150K
- Median loan
- $150K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into HHO Carbon Clean Systems's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 100 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 250,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | McCracken County, Kentucky |
| Jury trial waiver | Yes |
| Governing law | Kentucky |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 19 hrs
- Training location
- Paducah, Kentucky
- POS system
- FranFast CRM and Business Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: FranFast CRM and Business Management System
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HHO Carbon Clean Systems · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HHO Carbon Clean Systems franchise?
The total investment to open a HHO Carbon Clean Systems franchise ranges from $108K – $185K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HHO Carbon Clean Systems franchise owners earn?
HHO Carbon Clean Systems does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is HHO Carbon Clean Systems's franchise failure rate?
SBA 7(a) loan charge-off data is not available for HHO Carbon Clean Systems (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many HHO Carbon Clean Systems franchise locations are there?
As of their most recent FDD filing, HHO Carbon Clean Systems has 15 total units in the United States, including 14 franchised units and 1 company-owned units. 3 new units were opened in the latest reporting year.
Is HHO Carbon Clean Systems a good franchise to buy?
FranchiseVerdict rates HHO Carbon Clean Systems as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.