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Comment on changing terms of standard contract - reducing protection / cs webinars continue / Why you should use our central station
July 30, 2020
Next webinar:  starts at noon ET.  Register now:

Security Partners - July 30, 2020

Comment on changing terms of standard contract - reducing protection from article on July 18, 2020
            I am commenting on Travis’ question in the July 18, 2020 article in which he asked about shortening contract terms.  Contracts have a legal component and a business component.  I would agree that an owner should never make any change without running it by an attorney.  We perform due diligence for Buyers, and help Sellers prepare to sell, and we review thousands of monitoring agreements each year.  We inevitably run into lots of agreements that were modified by owners with good intentions, but have been severely impaired or even rendered nearly worthless.  Your Alarm Industry Concierge Program provides a service that is a very economical way for a Company to address changes requested by customers. 
            The other issue is marketability of the contract.  Buyers have internal standards regarding contract terms.  It is possible for your contract to be perfectly legal and enforceable, yet unacceptable to a Buyer.  You correctly point out that the initial term should be tied to recovering costs.  Long renewal terms are another thing.  I’m not aware of any Buyers who put extra value on long term renewals.  I actually prefer one year evergreens because it indicates that the customer has had multiple opportunities to cancel but stayed with the Company.  Unreasonably long renewal terms can put the industry in a bad light.  As a board member of several alarm associations, I typically hear about them when a legislator, or Attorney General, is upset because their niece had just realized that the contract that they signed in 2013 is in the middle of a five year renewal.  
            I am not a big fan of month-to-month renewals.  Many Buyers don’t like them, and they give the Customer the ability to cancel at any time.  While this may not be an issue with an account base of happy customers, the conception among Buyers is that a predatory company could target the account base and induce customers to cancel without as much fear of action by the account owner for tortious interference.  Again, there is the legal environment and the business environment.  Legal is fairly objective, business, not so much.
 Mitch Reitman
 Reitman Consulting Group
Fort Worth, TX 
            The Standard Form Agreements have been carefully crafted over years of experience and feedback from the alarm industry.  It's an on-going process, so after 45 years I am still making changes on a regular basis as technology and laws evolve.  Just about any change that a Dealer wants to make the Standard All in One agreements diminishes the protective quality of the contract; it also creates potential issues when the Dealer wants to sell its accounts and contracts because Buyers are more comfortable knowing that the Dealer used the Standard Forms as written.  Obviously it's common for modification on a subscriber by subscriber basis, and that's one of the issues a Buyer needs to focus on during its due diligence period assessing the accounts and contracts.
            There is a reason for month to month renewal.  Actually more than one reason, but the primary reason is that many states have laws affecting automatic renewal, and there is the possibility that states without such laws will adopt them at any time.  Automatic renewal laws generally require specific notice in the contract and notification to the subscriber.  Most alarm companies do not comply with these notice provisions.  So if the accounts are in a state without automatic renewal laws, you can have a longer term automatic renewal.  
            Enforcement of a longer term automatic renewal provision is often a challenge.  No matter what the law is in your state and whatever experience you may have had with court cases, it's hit and miss; some judges will resist enforcing the renewal term [long term contracts too].    
            I prefer that you find a reason to visit your subscribers before the term contract expires and update the system and services, and the contract.  The automatic renewal of month to month will be enforced and you will continue to have to all the protection in the contract during the renewal term.

Central station webinars
            Not all central stations on The Alarm Exchange have opted to participate as of yet.  You still have time.  Contact our Concierge Coordinator Stacy Spector,Esq at or 516 747 6700 x 304.  You just might pick up one or more dealers.
            And, speaking of dealers, selecting the right central station is important; there’s lots to consider.  K&K is saving you the trip to Vegas and bouncing from one booth to another, stuffing your pockets with candy and pens [not that there is anything wrong with that].  You have and you will be hearing from the best of the best in this webinar series.  
            Keep in mind that any legitimate central station is going to require you to sign a Dealer Agreement.  This isn’t a car rental contract at the airport.  It can be modified and you need to ask for those modifications.  I’ve designed a Rider that applies to every central station Dealer Agreement because it includes all the provisions a dealer should be asking for and is entitled to.  If you are negotiating with a new central station or re-negotiating with your current central station, be sure to get the Rider.  It’s $500 and well worth it.  Order it at in the Monitoring Centers Contracts category.

Central Station* 2020 webinar series K&K is hosting webinars by central stations, one at a time, who will address "why you should be using our central station".  Each webinar will be approximately 20 minutes and then Q&A opportunity.  See what your central station has to offer or what others offer, enabling you to choose the right central station for you.  You should be using a central station listed on The Alarm Exchange to be assured of quality and more importantly, accountability.
  *  only central stations on The Alarm Exchange will be invited to participate
Register Now for the CS webinar series: 

Security Partners - July 30, 2020 
National Monitoring Center - July 31, 2020

Electronix Systems Central Station Alarms - August 6, 2020
Central station 2020 webinars

             Not all central stations listed on The Alarm Exchange have opted to participate in our webinar series, "Why you should be using our central station" and I've been wondering why.  Only answer I can come up with is, apparently, they don't think you should be using their central station.  Go figure.
            Our central station's webinars have begun.  Register now.  
            Central stations will have the opportunity to tell you what services they offer, to what extent the services are unique or specialized and what you can expect to pay.
            The webinars offer an excellent opportunity to interact with your central station, scope out another central station, and consider whether you want to move accounts or open new accounts with a particular central station.  Am I encouraging central station hopping?  No, but I am encouraging you to use central stations listed on The Alarm Exchange.  Why, for you, not me.  You get the added protection of knowing that the listed central stations are expected to deal with dealer issues and cooperate with a goal of resolving disputes. Those that fail to co-operate risk having their post removed from The Alarm Exchange.  That may not sound like a big deal to you, but check out The Alarm Exchange central station category.  Every major reputable central station is participating.  If your central station isn’t, move to one that is.  If you don’t, don’t bother complaining to me about problems you have with the central station; I have no relationship with that central station and won’t be able to make a call to resolve your issue.  
            So make some time to attend the webinars, by video or on your phone.  They will all be recorded and you will be able to view or hear them by visiting the K&K website and navigating to the alarm webinars:

To order up to date Standard Form Alarm /  Security / Fire and related Agreementsclick here:
You can check out the program and sign up here: 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