What is the relationship between the insurance requirements and the potential liability of Carbones Pizzeria?
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. You must carry the following policies and minimum amounts of coverages:
| Commercial General Liability | $1,000,000 limit per occurrence $2,000,000 aggregate | |
|---|---|---|
| Business Personal Property | Replacement cost coverage | |
| Business Motor Vehicle | $1,000,000 combined single limit of liability per occurrence | |
| Liability | $1,000,000 uninsured/underinsured motorist coverage | |
| Workers’ Compensation | Policy limits pursuant to applicable state law | |
| Umbrella/Excess Liability | $1,000,000 limit per occurrence $1,000,000 aggregate | |
| Liquor Liability | $1,000,000 limit per occurrence $2,000,000 aggregate | You and other franchisees m |
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 required to maintain specific insurance policies with minimum coverage amounts. Carbones Pizzeria mandates that franchisees carry commercial general liability insurance with a $1,000,000 limit per occurrence and a $2,000,000 aggregate, business personal property insurance with replacement cost coverage, business motor vehicle liability insurance with a $1,000,000 combined single limit per occurrence, and liability insurance with $1,000,000 uninsured/underinsured motorist coverage. Additionally, franchisees must have workers’ compensation policies that adhere to applicable state laws, umbrella/excess liability insurance with a $1,000,000 limit per occurrence and a $1,000,000 aggregate, and liquor liability insurance (if applicable) with a $1,000,000 limit per occurrence and a $2,000,000 aggregate.
These insurance requirements are designed to protect both the franchisee and Carbones Pizzeria from potential financial losses due to various liabilities. By requiring these specific policies and coverage amounts, Carbones Pizzeria aims to mitigate risks associated with operating a restaurant, such as property damage, personal injury, and other unforeseen events. The inclusion of Carbones Pizzeria as an additional insured on these policies (excluding workers' compensation) further ensures that the company is protected against potential claims and liabilities arising from the franchisee's operations.
The FDD states that franchisees must provide Carbones Pizzeria with 30 days' notice before any changes, cancellation, or termination of any insurance policy. This requirement allows Carbones Pizzeria to ensure continuous coverage and address any potential gaps in insurance protection. By maintaining these insurance policies, Carbones Pizzeria franchisees can transfer some of the financial risk associated with running the business to an insurance provider, while also protecting the Carbones Pizzeria brand from potential liability.
It is important for prospective Carbones Pizzeria franchisees to carefully review these insurance requirements and understand the costs associated with obtaining and maintaining the necessary coverage. Franchisees should consult with insurance professionals to ensure they have adequate protection and to discuss any specific concerns or questions related to their individual circumstances.