KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Comment on the Rider for Central Station Dealer Agreement April 19, 2025 **************************** Comment on the Rider for Central Station Dealer Agreement from article on April 9, 2025 *************************** Ken. Thank you for the insight once again! So if we purchase the CS rider agreement, do we “pitch” it to them? Or do you handle it? Do you have a contact that we would be using? We use one of the CS’s you listed. Thank you, David ************************** Response ************************* Most of you are already party to a contract with your central station. Getting that contract modified mid-stream is going to be difficult, to say the least, unless you give the central station the opportunity to re-new the Dealer Agreement with a new term, sort of how I suggest you get your subscribers to sign new contracts before their existing contract [with you] is expired. If you have one year left on your contract with the central station, and for sure if you have 6 months or less, you need to initiate negotiations for a new Dealer Agreement. Many Dealer Agreements self-renew for long renewal terms. The Rider to Dealer Agreement is simple. There are maybe 12 items on the Rider that override the Dealer Agreement. Some may not apply to your relationship and deal with your central station. For example, if your central station has given you incentive [money] to come to the central station, or given you other incentive [reduced monitoring charges] then provisions in the Rider that permit you to leave any time without penalty or permit you to use other central stations or do not require a minimum of accounts be maintained at the central station, probably won't apply. You would agree to strike those provisions. The Rider provision dealing with contacting your subscribers and confidentiality will likely apply. The most important provision, and the deal breaker for me if the central station wants to strike the provision, is the provision limiting your indemnity obligation to your insurance coverage. If the central station wants to require particular levels of insurance I have no problem with that. You will know the limits of coverage and cost of coverage. The important thing is that you won't be exposed to indemnity claims beyond your coverage. When a dealer buys the Rider to Central Station Dealer Agreement I expect the dealer to present it to the central station; I don't need to be involved in the discussion or negotiations. Please keep in mind that the dealer should instruct the central station not to try and incorporate the Rider into a re-written Dealer Agreement. I don't want to have to review a revised Dealer Agreement is that that key provisions are contained in the agreement; the Rider should be attached to the Dealer Agreement. Also be sure to strike provisions rather than delete them so that the Rider remains intact; it's easier to review. Some central stations may give you a hard time and some may not agree to attach the Rider. I suggest you do not do business with that central station; it's not worth it, especially when the most reputable central stations will accept and work with the Rider for your particular deal. *************************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** 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. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** 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
