How to Finance an HHO Carbon Clean Systems Franchise: Van Costs
By Chris Cornella
An HHO Carbon Clean Systems franchise loan finances a mobile engine-cleaning business that runs out of a service van rather than a storefront. The franchisor’s start-up investment page puts the total investment for one territory at $108,380 to $185,330, and most of that money goes into the franchise fee, a cargo van and the hydrogen cleaning equipment installed inside it.
This article walks through the published costs, the ongoing fees, how the brand’s SBA Franchise Directory listing works and how lenders look at a vehicle-based, equipment-heavy franchise with no building to pledge as collateral.
US Professional Funding is not affiliated with, sponsored by or endorsed by HHO Carbon Clean Systems; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant before you sign or borrow.
HHO Carbon Clean Systems Franchise Loan at a Glance
- Total investment, one territory: $108,380 to $185,330, according to the franchisor’s start-up investment page
- Initial franchise fee: $44,900 for a single territory, paid in a lump sum at signing and non-refundable
- Veteran and first responder discount: 10% off the initial franchise fee
- Royalty: 6% to 8%
- Brand development fund: 2%
- Net worth requirement: $250,000
- Business model: a mobile service run from a cargo van, model year 2019 or newer
- Training: a week-long program at headquarters in Metropolis, Illinois
- Franchisor financing: none in-house; the franchisor says it does not finance any part of the initial fees
- SBA Franchise Directory: listed under code S7129, with no additional note
What Is HHO Carbon Clean Systems?
HHO Carbon Clean Systems offers what it calls a mobile preventative maintenance service for gas and diesel engines. Its technicians run distilled water through electrolysis to produce oxyhydrogen (HHO) gas, which is fed into the engine’s air intake. During combustion, carbon deposits change into a gaseous state and leave through the exhaust, with no harsh chemical detergents or solvents.
The company says the service targets carbon buildup on pistons, cylinders, turbos, catalytic converters, diesel exhaust filters and sensors, without an engine teardown or an oil change afterward. Customers range from fleet vehicles such as school buses, tractors, cranes and cement mixers to luxury passenger cars.
Three revenue streams. According to the franchisor, owners can earn income from carbon cleaning services, from a dealership leasing program that places generators with local businesses such as car washes, detailing shops and auto body shops, and from generator sales to buyers the franchisee chooses within its territory.
How lenders view the model. The business has no real estate and publishes no earnings figures, so an HHO Carbon Clean Systems franchise loan rests on your personal financial strength, your sales ability and the van and equipment package as collateral. Our article on franchise financing for veterans is also worth reading if you plan to use the brand’s veteran discount.
HHO Carbon Clean Systems Franchise Costs
Initial franchise fee. The start-up investment page lists a $44,900 fee for a single territory, due in full when you sign. It is non-refundable, and the franchisor does not finance any part of it. Veterans and first responders receive 10% off, and the company’s FAQ says additional territories carry a reduced initial fee.
No real estate or build-out. Unlike a shop-based automotive franchise, there is no lease, construction or leasehold improvement line.
Service vehicle and equipment. The van and the cleaning system are the largest costs after the franchise fee. The franchisor calls for a cargo van, model year 2019 or later, with shipping included in its estimate. The equipment package and its installation follow, then the vehicle wrap.
Total investment. The franchisor’s start-up investment page lists these line items for one territory:
- Initial franchise fee: $44,900
- Service vehicle: $5,100 to $41,000
- Vehicle equipment package: $30,880 to $44,930
- Equipment installation: $4,000 to $6,000
- Vehicle wrap: $2,500 to $3,500
- Software and business management system: $1,500 to $3,000
- Start-up marketing: $3,000 to $6,000
- Insurance deposits (3 months): $3,000 to $5,000
- Initial training travel: $1,500 to $3,000
- Professional fees: $1,000 to $2,000
- Licenses and permits: $500 to $1,000
- Vehicle maintenance: $500 to $750
- Additional funds (3 months): $10,000 to $24,250
Those items add up to the $108,380 to $185,330 total. Another page on the franchisor’s site shows a lower, older estimate, so confirm every figure against Item 7 of the current FDD.
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor lists a royalty of 6% to 8%. Item 6 of the FDD explains what the percentage is charged on and what determines where you fall in the range.
Brand development fund. Owners contribute 2% to the brand development fund.
How lenders factor these costs in. Royalty and fund contributions come off the top line before fuel, insurance and loan payments. Lenders deduct them, then test whether the remaining cash flow covers the van and equipment payments with a cushion.
Franchisor Requirements for New Owners
- Net worth: $250,000, according to the start-up investment and culture pages
- Liquid capital: the franchisor’s pages give different liquidity figures, so confirm the current requirement with the franchise development team
- Experience: automotive experience is not required; the company says sales experience is necessary
- Licensing: no specific licenses beyond those required locally
- Vehicle: a white cargo van, model year 2019 or newer
Training. New owners attend a week-long program at headquarters in Metropolis, Illinois, covering operations, sales, technology and hands-on work.
The approval process. The franchisor lists six steps: get started, an introduction to the brand, a questionnaire, review of the FDD, a meeting with the team and signing the franchise agreement.
Ways to Own an HHO Carbon Clean Systems Franchise
A new single territory. The FAQ says franchisees often start as owner-operators. Financing typically covers the franchise fee, van, equipment package and early working capital, sized on projections. Our automotive care start-up financing page outlines how these loans are structured.
Adding vehicles or territories. The FAQ says franchisees can run several vehicles in one territory or invest in multiple territories, and owners often add a sales technician as demand grows.
Buying an existing franchise. A transfer gives lenders actual revenue, customer lists and fleet contracts to review, subject to franchisor approval. Our article on buying a franchise resale explains the process, and our automotive care business acquisition page covers purchase financing.
Financing Options for an HHO Carbon Clean Systems Franchise
SBA 7(a) loans. An SBA 7(a) loan can finance the franchise fee, van, equipment, opening costs and working capital in one package. Because the brand is on the SBA Franchise Directory, an SBA-backed loan is available to qualified borrowers.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. With no building in this model, it is rarely a fit for a single-van start-up.
Conventional term loans. Borrowers with strong credit and liquidity may use a conventional business loan.
Equipment and vehicle financing. The cargo van, the hydrogen generator system, its installation and the wrap can be financed as equipment, with the assets as collateral. Explore automotive care equipment financing and leasing.
Working capital and lines of credit. Fuel, insurance and marketing come due while you build fleet accounts, and generators placed on lease tie up cash before lease payments arrive. See our automotive care working capital and lines of credit.
Seller financing on resales. When buying an existing territory, a seller may agree to carry a note for part of the price. Any seller note is typically subordinate to the senior lender, and SBA rules may limit how it is structured.
Franchisor financing. The company says it has no in-house financing and does not finance initial fees, though it works with outside financing sources. Item 10 of the FDD confirms what, if anything, is offered.
SBA Loans for HHO Carbon Clean Systems Franchisees
The SBA reviews franchise agreements and lists eligible brands on the SBA Franchise Directory. SBA lenders generally require a listing before making an SBA-backed loan to a franchisee. A listing does not approve any borrower; it clears the franchise relationship so lenders can review the request.
HHO Carbon Clean Systems is listed. The brand appears on the directory under code S7129, with no special note attached. In plain English, the franchise agreement has been reviewed, and no extra addendum or document instruction applies beyond the standard SBA process.
Program limits. The SBA 7(a) program maximum is currently $5 million, although program rules can change.
SBA application tips. Bring the FDD, a business plan tied to the Item 7 line items, your personal financial statement, tax returns, equipment and vehicle quotes, and proof of your equity injection. Our SBA loan calculator gives planning estimates only.
How Lenders Evaluate an HHO Carbon Clean Systems Deal
Personal credit and financial history. For any HHO Carbon Clean Systems franchise loan, expect a review of your credit, personal financial statement and tax returns, along with a personal guaranty.
Net worth and liquidity. The franchisor’s $250,000 net worth requirement is a starting point. Lenders also want reserves left over after your down payment, since a mobile business can be sidelined by a vehicle repair.
Sales and management experience. The company says sales experience matters more than automotive skill. Show a record of business-to-business selling, fleet relationships or route-based service work.
Business plan and projections. Build projections around your territory’s fleets, farms, contractors and dealerships, the number of cleanings you can complete per day, the leasing and sales pipeline, and the 6% to 8% royalty and 2% fund. Separate recurring service revenue from one-time generator sales.
The FDD and franchise agreement. Lenders review fees, the term and renewal conditions, territory rights and transfer rules. The franchisor’s start-up page indicates the FDD does not include Item 19 earnings guidance, so your projections must stand on local research. See our article on reading an FDD for financing.
Collateral. With no real estate, the van and equipment are the main collateral behind an HHO Carbon Clean Systems franchise loan, and lenders will weigh their resale value.
Historical financials for resales. For an existing territory, provide profit and loss statements, customer and fleet contract lists, lease agreements and tax returns.
The Van and Equipment Package
The vehicle equipment package and installation together run $34,880 to $50,930 on the franchisor’s estimate, and the van adds $5,100 to $41,000. That combination is the heart of the business and the main asset a lender can secure.
Multi-Unit Growth
The franchisor’s FAQ describes a path from owner-operator to executive manager, adding vans and technicians in one territory or buying more territories at a reduced initial fee.
Financing additional vans and territories. Once your first van has a track record, its cash flow supports the next loan, and equipment financing can fund added vehicles. Our article on multi-unit franchise financing explains how owners fund growth.
Real-World Scenarios
A veteran starting one territory. A former service member with sales experience uses the veteran discount on the franchise fee and an SBA 7(a) loan for the van, equipment and working capital. The lender focuses on liquidity and the fleet prospects in the plan.
An owner who already has a qualifying van. A buyer with a newer white cargo van puts it into the business, lowering the financed amount, and uses equipment financing for the generator system and installation.
Common Mistakes to Avoid
- Budgeting from the lower estimate instead of the current Item 7 table
- Forgetting that the $44,900 fee is non-refundable and not financed by the franchisor
- Leaving out the 6% to 8% royalty and 2% fund when modeling cash flow
- Counting on generator sales to cover loan payments in the first months
- Underfunding the three months of additional funds and vehicle reserves
- Choosing a van that does not meet the franchisor’s model-year requirement
For more pitfalls, read about the automotive service loan mistakes that cost owners the most.
Next Steps to Finance Your HHO Carbon Clean Systems Franchise
Step 1: Submit an inquiry. Complete the franchisor’s form and confirm your target territory is open.
Step 2: Check your finances. Compare your net worth with the $250,000 requirement and confirm the current liquidity requirement.
Step 3: Review the FDD. Study Items 5, 6, 7, 10, 12, 17 and 19 with a franchise attorney and accountant.
Step 4: Talk with a financing specialist. Decide whether to finance the van and equipment together with the franchise fee or separately.
Step 5: Gather quotes. Price the van, wrap and insurance locally and list your first fleet prospects.
Step 6: Apply and close. Submit your loan package, sign the franchise agreement and schedule training in Metropolis.
HHO Carbon Clean Systems Franchise Loan FAQs
How much does an HHO Carbon Clean Systems franchise cost?
The franchisor’s start-up investment page lists $108,380 to $185,330 for one territory, including the franchise fee, van, equipment and three months of additional funds.
What is the HHO Carbon Clean Systems franchise fee?
The fee is $44,900 for a single territory, paid in full at signing. Veterans and first responders receive 10% off, and additional territories carry a reduced fee.
What royalty does HHO Carbon Clean Systems charge?
The royalty is 6% to 8%, plus a 2% brand development fund contribution. Item 6 of the FDD explains how each is calculated.
How much net worth do I need?
The franchisor lists a $250,000 net worth requirement. Its pages give different liquid capital figures, so confirm the current number before applying.
Can I get an SBA loan for an HHO Carbon Clean Systems franchise?
Yes, if you qualify. The brand is on the SBA Franchise Directory under code S7129, so SBA 7(a) financing is available subject to approval.
Do I need automotive experience?
No. The company says automotive experience is not required but sales experience is.
Does HHO Carbon Clean Systems offer financing?
The franchisor says it has no in-house financing and does not finance any part of the initial fees. Item 10 of the FDD will confirm.
Can I buy an existing territory?
Yes, with franchisor approval. Lenders will review the territory’s actual revenue, fleet contracts and equipment condition.
Final Thoughts
An HHO Carbon Clean Systems franchise is a compact, equipment-driven business: a fee, a van, a generator system and enough working capital to build fleet accounts. Its SBA Franchise Directory listing keeps an SBA-backed HHO Carbon Clean Systems franchise loan on the table, while equipment financing fits the van and machinery. Budget from the current Item 7 table and keep reserves for the road.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and automotive care financing solutions.
