KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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can customer pay existing company and switch alarm company / Sign up for private and group meetings at ISC
March 18, 2026
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ALMOST TIME TO PACK. DEFINITELY TIME TO PLAN YOUR DAY
Spots and time running out: schedule FREE Private or attend Group meeting at ISC
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Time slots are booking up for the ISC West 2026 meetings. Schedule private meeting with Ken Kirschenbaum, Rory Russell [broker for mergers and acquisitions], MItch Reitman [taxes, accounting and consulting] or Shawn Iverson [The Insurance Center]. Ken, Mitch and Rory will meet at the Prestige Lounge; Shawn will meet at The Insurance Center booth, number 28095, on the ISC floor.
Ken Kirschenbaum is available for private meetings Tues - Thursday 10am to 4pm.
To book time for private free consult or register for a Group Meeting contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com. Concierge Client can also contact the Concierge Program Coordinator, Stacy Spector,Esq at 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com.
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Group Meetings: Call Kathleen to register. Yes, it's free!!!!
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Tuesday 2 pm to 3 PM
Is it time to update your contracts and other issues you should be concerned about. Hosted by Ken Kirschenbaum
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Wednesday: 10 am to11 am
Selling or buying a business
Selling your alarm, fire and integration business. Small to large transactions. Selling Fire Protection accounts. By Rory Russell and Ken Kirschenbaum
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Wednesday: 1 pm to 2 pm
What's on your mind. Open meeting to discuss what's important to you. Hosted by Ken Kirschenbaum
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Wednesday: 2 pm to 3 PM
The One Big Beautiful Bill (OBBB) and what it means for alarm company owners and their employees The OBBB was signed into law on July 4th 2025. It is hundreds of pages long and deals with various subjects, but it does contain some provisions which are very beneficial to owners of alarm companies. Mitch Reitman has read the entire Bill and can tell you what you need to know and what you can still do get the maximum benefit on your 2025 tax return. Hosted by Mitch Reitman
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Thursday: 10 am to 11am
Best options for E&O and other insurance needed by your industry. Hosted by Shawn Iverson, CIC, The Insurance Center, 1741 North 2000 West, Ogden, UT 84404, 801-622-2626
www.InsuranceCenterUT.com
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Thursday: 1pm to 2pm
Which accounts bring the highest multiples on sale; how to position yourself to maximize the value of your alarm / integration business. Hosted by Ken Kirschenbaum
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can customer pay existing company and switch alarm company
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Ken
Does the customer have the right to cancel the current contract with the existing alarm company as long as they pay the amount owed (if any), and then go with any other alarm company they choose?
I am use to the ADT contract that stated, as I recall, the Customer can cancel at anytime during the contract period with a written notice of 30 days before and will need to pay 75% of what is owed of the remaining amount of the contract.
Look forward to your response.
Thanks
Sunny
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Response
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Alarm companies, including ADT, have fixed term agreements with automatic renewal provisions. This is the bedrock of the Recurring Monthly Revenue model. The idea is that the customer pays for services over the fixed time and hopefully will continue with the services once the initial term expires. Most alarm contracts also have a provision that deals with what happens if the customer fails to fulfill the payment obligation under the contract. This can be referred to as an "early termination" charge or, as it is referred to in the K&K Standard Agreements, a "liquidated damage" provision. In the K&K Agreements the liquidated damage is 80 of the balance of the contract term.
A customer would have the right to pay off the contract and then switch companies. Some of you may be thinking, wow, that's probably a better way to get accounts than paying a multiple in the 35 times range, assuming the average account has less than the 35 months left.
There's two flaws with that idea [at least]. One, it won't be easy identifying the accounts, especially those with less than the 35 times the monthly. But, two, you're inviting a lawsuit from the company you decide to raid. If you encourage customers to pay off the contract balance, whatever percentage it might be to pay off the contract, you risk a lawsuit for tortious interference of contract. You take enough accounts and you'll get sued. While the contracts will have been paid off the expectation of continued business from the accounts will have been lost, and that's what you'll get sued for; and yes, you might lose.
An occasional account here and there is of course fine to accept, as long as you didn't use deceptive tactics to encourage the switch. But other than that, I recommend getting your customers the old fashion way, legal, moral and ethical competition.
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STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com
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CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com