What is the required liquor liability aggregate 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 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 liquor liability insurance with specific coverage limits. The required aggregate limit for liquor liability is $2,000,000. This coverage is designed to protect both the franchisee and the franchisor from potential financial losses resulting from incidents related to the sale or service of alcohol at the Carbones Pizzeria location.
In addition to the aggregate limit, the FDD also specifies a per occurrence limit for liquor liability. Carbones Pizzeria franchisees must maintain a $1,000,000 limit per occurrence for liquor liability. This means that for each individual incident involving alcohol-related liability, the insurance policy must cover up to $1,000,000 in damages or legal costs.
These insurance requirements are typical in the restaurant and bar franchise industry, especially for establishments that serve alcohol. Franchisees should factor the cost of these insurance policies into their overall business plan and operating expenses. It is important for prospective Carbones Pizzeria franchisees to consult with an insurance professional to ensure they obtain adequate coverage that meets the franchisor's requirements and protects their business from potential liabilities.