What are the policy limits for workers' compensation insurance required for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
former agents or employees) may be sought by Franchisor to prevent such irreparable damages.
11. Insurance.
Franchisee shall, during the term of this Agreement, secure and keep in force at Franchisee's sole expense, the minimum insurance coverages in the minimum amounts as required by Franchisor from time-to-time. As of the date hereof, the minimum insurance coverages and the minimum amounts meeting Franchisor's requirements are set forth below:
| Commercial General Liability | $1,000,000 limit per occurrence |
|---|---|
| $2,000,000 aggregate | |
| Busi |
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 FDD, Carbones Pizzeria requires franchisees to maintain workers' compensation insurance with policy limits that adhere to the applicable state law. This means the specific amount of coverage a franchisee needs will vary based on the state in which their Carbone's Pizzeria restaurant is located, as workers' compensation requirements are determined at the state level.
In addition to workers' compensation, Carbones Pizzeria mandates other insurance coverages with specific limits. These include Commercial General Liability with $1,000,000 limit per occurrence and $2,000,000 aggregate, Business Personal Property with replacement cost coverage, Business Motor Vehicle Liability with $1,000,000 combined single limit of liability per occurrence and $1,000,000 uninsured/underinsured motorist coverage, Umbrella/Excess Liability with $1,000,000 limit per occurrence and $1,000,000 aggregate, and Liquor Liability with $1,000,000 limit per occurrence and $2,000,000 aggregate.
Prospective Carbones Pizzeria franchisees should consult with an insurance broker to determine the precise workers' compensation coverage required in their state. They should also factor in the costs of all required insurance policies when assessing the financial feasibility of opening a franchise. Maintaining adequate insurance is crucial not only for compliance but also to protect the franchisee's business and assets from potential liabilities.