What is the required liquor liability insurance 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 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 specific coverage limits. The required aggregate limit for liquor liability insurance 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, Carbones Pizzeria franchisees must also maintain a per occurrence limit of $1,000,000 for liquor liability. This means that for each individual incident involving alcohol-related liability, the insurance policy must cover up to $1,000,000. The aggregate limit of $2,000,000 represents the total amount the insurance policy will pay out for all claims during the policy period, which is typically one year.
These insurance requirements are put in place to mitigate risks associated with serving alcohol and to ensure that the Carbones Pizzeria franchise can meet its financial obligations in the event of a liability claim. Prospective franchisees should factor in the cost of this insurance coverage when evaluating the overall investment required to start and operate a Carbones Pizzeria franchise. It is also important to review the specific terms and conditions of the insurance policy to fully understand the scope of coverage and any exclusions that may apply.