What is the required aggregate liquor liability insurance limit for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 13–14)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, franchisees are required to maintain liquor liability insurance with a limit of $1,000,000 per occurrence and an aggregate limit of $2,000,000. This insurance coverage is specifically designed to protect the business from financial losses resulting from incidents involving the sale or service of alcohol.
The requirement to carry liquor liability insurance is a standard practice in the restaurant and bar industry, particularly for establishments that serve alcoholic beverages. The purpose of this insurance is to cover potential damages and legal costs if a customer becomes intoxicated at the Carbones Pizzeria location and subsequently causes harm to themselves or others. This coverage can protect the franchisee from significant financial liabilities that may arise from such incidents.
Prospective Carbones Pizzeria franchisees should factor the cost of this insurance into their overall operating expenses. The actual premium will vary depending on factors such as the location of the franchise, the history of alcohol-related incidents in the area, and the specific insurance provider. It is advisable to consult with an insurance broker to obtain quotes and ensure that the coverage meets the franchisor's requirements and adequately protects the franchisee's business interests.