What is the required umbrella/excess 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 |
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 umbrella/excess liability insurance. The required limit for this coverage is $1,000,000 per occurrence and $1,000,000 in aggregate. This insurance is in addition to other required policies such as commercial general liability, business personal property, business motor vehicle liability, workers' compensation, and liquor liability if applicable.
Maintaining this level of umbrella/excess liability coverage is crucial for protecting the Carbones Pizzeria franchise from potentially large claims that could exceed the limits of the other primary insurance policies. For example, if a major accident occurred on the property resulting in multiple injuries, the umbrella policy would provide additional coverage beyond the $1,000,000 per occurrence limit of the commercial general liability policy. This helps safeguard the franchisee's assets and the financial stability of the business.
Prospective Carbones Pizzeria franchisees should factor the cost of this insurance coverage into their initial investment and ongoing operating expenses. It is important to consult with an insurance professional to obtain quotes and ensure that the policy meets the franchisor's requirements. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential termination of the franchise.