This place is for clowns in training, where they may go to learn how to put on a show, perform tricks, magic, and more amazing things for people to enjoy the circus. However, the clowns who misbehave are sent to a place known only as Clown Street, which is where the Clown Street Hotel is located. The Clown Street Hotel is only a moniker to mask what it really is; a place to jail clowns. It was built by a man known only as "The Frightener." No one knows his real name, but clowns say that The Frightener was scarred forever by a clown when he was young, which is why he decided to take his revenge on as many clowns as possible. Since then, many a clown have perished fighting against deadly animals, generating entertainment for the Frightener's relatives.
According to the book, the more experienced clowns perform at the circus. Ray Gordon arrives at Koko's Klown Academy, but begins to notice that there is something eerily different than what he had expected. The clowns all tremble in fear whenever a clown by the name of Mr. HahaFace makes his presence known, and Ray knows he is being threatened by someone, but he does not know why. He later finds out that clowns who misbehave are sent to Clown Street, and he finds a way to travel there. However, after battling a vicious animal, he is jailed. Trapped in a cell, he meets his uncle Theo, who was sent to Clown Street recently, and they devise a plan to scare the Frightener off. The plan succeeds, and the clowns are finally freed.