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 ****************************** customer sells business; now what? August 1, 2025 ************************ customer sells business; now what? ************************* Ken, I have a customer that informed me that they sold their business, after the fact, and would like to transfer the account to the new owner. I informed them that I could not transfer the account and that a new customer agreement would have to be completed by the new owner. I offered to stop out to accomplish this. I was informed that the new owner resides outside the area. I emailed the new agreement to the previous owner and informed them to have the new owner complete it and return it to me. The previous owner is still with the company and currently managing the business. They did not request cancelation of the account. Do I cancel the current account or give them a deadline for receiving the new agreement to be returned before terminating the account. Thank you, Bryan ************************ Response ************************ What seems like a simple scenario, isn't. As usual there are gaps in the facts that would change the response. You received a call from the subscriber that he sold the business, but he is still there. You insisted on new contract with new owner, which has not be signed yet. Should you terminate service? We don't know if the sale was "shares" in the entity or a sale of assets. If ownership of the entity was changed then a new contract is not necessary, because the subscriber has not changed. If the subscriber sold its assets and a new entity bought the assets and occupies the premises, then the new entity, now the new owner, does have to do one of two things: 1. Sign an Assignment and Assumption Agreement approved by you, or 2. Sign your new Standard Form Agreement for the services you will be continuing to provide Assuming this was a sale of assets to a new entity, even though the old owner is still working there, you should not continue service without a contract in place, the old one or a new one. If this new owner suffers a loss and it or its carrier sues you there will be no contract to protect you. If, by the way, you have already begun providing services to a customer with no contract in place you need to give notice of termination of service, unequivocable notice. ******************** 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
