HHO Carbon Clean Systems Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$88,000

-

$154,000

LOCATIONS

11

Adam

Updated

May 2, 2024

Is

HHO Carbon Clean Systems

a franchise?

Yes,
HHO Carbon Clean Systems
currently
accepts
franchise
applications

HHO Carbon Clean Systems is a pioneering franchise that specializes in providing innovative solutions for engine carbon cleaning and emissions reduction. Founded in 2013, the franchise is headquartered in Coventry, United Kingdom, and it has gained recognition in the automotive industry for its cutting-edge technology. HHO Carbon Clean Systems began offering franchising opportunities, enabling entrepreneurs to be part of a brand known for its commitment to vehicle performance enhancement and environmental sustainability.

At HHO Carbon Clean Systems, customers can benefit from advanced engine carbon cleaning services that use hydrogen and oxygen gases to remove carbon deposits from the internal combustion engine. This process not only improves fuel efficiency and engine performance but also reduces harmful emissions. What sets HHO Carbon Clean Systems apart from its competitors is its focus on eco-friendly and non-invasive carbon cleaning technology, which is safe for all types of vehicles, including cars, trucks, and motorcycles.

How many

HHO Carbon Clean Systems

franchises

are there?

In 2022, there were
11
outlets in
the United
States, of which
10
are franchises, and
1
are corporate-owned.

What are the

HHO Carbon Clean Systems

franchise

fees?

Royalty fee

6% to 8%

Advertising fee

4% to 6%

Initial Franchise Fee

The Initial Franchise Fee for HHO Carbon Clean Systems is $30,000 for a single Territory. If the Operating Territory includes additional Territories, the Initial Franchise Fee increases accordingly, with discounts applied for multiple Territories purchased at the same time​​​​​​.

Royalty Fee

Franchisees must pay a Royalty Fee of the greater of 6% to 8% of Gross Sales or the Minimum Monthly Royalty Fee Requirement, which varies depending on the size of the operating territory. The fee is payable monthly​​​​.

Advertising Fee

There is a Brand Development Fund Fee of up to 2% of Gross Sales, though currently, the franchisor does not charge this fee but reserves the right to implement it in the future. Additionally, franchisees are required to spend 2% of monthly Gross Sales (but not less than $500 per month, plus $500 per month for each Additional Territory) on pre-approved marketing within their operating territory​​.

Technology Fee

The monthly Technology Fee is currently $250 per month for up to three users for ClientTether, plus an additional $12 per month per user for Google Workspace. The franchisor reserves the right to increase this fee if vendor pricing changes​​​​.

Transfer and Renewal Fees

For transferring the franchise, a fee of $15,000 is payable upon approval of the transfer request. The Renewal Fee for continuing the franchise agreement is $10,000​​.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

HHO Carbon Clean Systems

franchise?

It costs between
$88,000
and
$154,000
to start a
HHO Carbon Clean Systems
franchise.
Type of Expenditure Amount
Initial Franchise Fee (Note 1) $30,000
Construction and Leasehold Improvements $0 - $2,500
Storage Unit (Note 3) $0 - $450
Service Vehicle $5,100 - $41,000
Service Vehicle Initial Equipment Package (Note 5) $29,450 - $37,950
Service Vehicle Equipment Installation (Note 5) $3,000 - $6,000
Service Vehicle Wrap (Note 5) $1,500 - $2,500
Software and Computer System $2,000 - $4,000
Initial Inventory $2,500 - $4,500
Insurance $2,000 - $3,000
Professional Fees $2,000 - $5,000
Grand Opening Advertising $2,000 - $4,000
Additional Funds (3 months) $5,000 - $10,000
Total $84,550 - $150,900

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

HHO Carbon Clean Systems

provide

training

to its

franchisees?

Yes,
HHO Carbon Clean Systems
provides
training
  1. Initial Training Program: The franchisor offers an initial training program that may include classroom and on-the-job instruction, either at a location designated by the franchisor or remotely through online web-based conferencing. This program is mandatory for the franchisee’s Managing Owner and one designated manager. The franchisee is responsible for the ongoing training of their employees, ensuring it conforms to the franchisor's standards and specifications.
  2. Supplemental Training: Subject to approval, the franchisor may offer supplemental training either within the franchisee’s Operating Territory or remotely. This training incurs a fee of $500 per trainer per day, plus potential travel and accommodation expenses for the franchisor.
  3. Refresher Training Courses and Seminars: The franchisee, or if a Corporate Entity, the franchisee's Managing Owner and Manager, must attend and complete all designated refresher training courses or system-wide training courses, additional training programs, and seminars as periodically designated by the franchisor. The franchisee is responsible for all related expenses.

Does

HHO Carbon Clean Systems

provides

territory

protection?

HHO Carbon Clean Systems offers franchisees territory protection under certain conditions. Franchisees are allocated a specific Operating Territory for conducting business and marketing activities. However, they are restricted from soliciting customers outside this territory and must adhere to the franchisor's operational standards.

While franchisees have a designated area, the franchisor also sets rules for servicing customers outside this territory under defined conditions. The franchise model thus provides territorial protection while enforcing guidelines to maintain brand integrity and market structure.

Can a

HHO Carbon Clean Systems

franchise

be run as

a passive

investment?

The HHO Carbon Clean Systems franchise demands active involvement from franchisees. Franchisees must either actively manage their franchise or appoint a trained and qualified Operating Manager. Absentee ownership or passive investment is not supported, as the franchise requires direct, ongoing management and oversight to maintain operational standards and brand integrity.

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