What is the exception to the requirement that Carbones Pizzeria franchisees name the franchisor as an additional insured?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
erwise approve those changes.
You must carry the types and amounts of insurance we specify and you must name us an additional incurred (other than the workers compensation policy), and provide us 30 days notice before any change,
cancellation or termination of any policy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 12–13)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees are generally required to name the franchisor as an additional insured on their insurance policies. However, there is an exception to this rule.
The exception is for the workers' compensation policy. The FDD states that franchisees must name Carbones Pizzeria as an additional insured on all required insurance policies, "other than the workers compensation policy".
This means that while Carbones Pizzeria franchisees must include the franchisor on their commercial general liability, business personal property, business motor vehicle liability, uninsured/underinsured motorist coverage, umbrella/excess liability, and liquor liability insurance policies, they are not required to do so for their workers' compensation insurance. This is a fairly standard practice, as workers' compensation typically covers the franchisee's employees, and the franchisor's inclusion is usually not relevant.