Can a Carbones Pizzeria franchisee obtain insurance from any insurer, or are there restrictions?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor as an additional insured (other than the workers compensation policy), and shall contain an endorsement that no such policy shall be cancelled, amended, terminated, or modified at any time without thirty (30) days' prior written notice to Franchisor. In addition, Franchisee agrees to furnish Franchisor with a copy of all insurance policies and with proof that such insurance is in full force and effect, upon all such requests of Franchisor. All such insurance policies may be obtained from any insurer Franchisee determines, so long as such insurer is qualified and licensed to do business in the state of Franchisee's Restaurant.
**12.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, franchisees can obtain insurance from any insurer they choose, provided the insurer meets certain qualifications. Specifically, the insurer must be qualified and licensed to conduct business in the state where the Carbones Pizzeria restaurant is located.
Carbones Pizzeria requires that the franchisor is named as an additional insured on each policy, with the exception of workers' compensation policies. Furthermore, each policy must include an endorsement stipulating that the policy cannot be canceled, amended, terminated, or modified without providing thirty days' prior written notice to Carbones Pizzeria.
To ensure compliance, Carbones Pizzeria requires franchisees to furnish copies of all insurance policies and proof of their active status upon request. This requirement allows Carbones Pizzeria to verify that franchisees maintain adequate coverage and that the franchisor is appropriately protected under the terms of the insurance policies. This is a fairly standard practice in franchising, allowing the franchisor to mitigate risk.