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How to calculate your demand if customer wants out of contract / cs webinars 
August 17, 2020
Register for Central Station 2020 Webinars below
Electronix Systems C.S.A:  August 18, 2020  12 PM ET
Emergency 24:   August 19, 2020 12 PM ET
Central Stations – still time to get on our Central Station 2020 Webinar schedule.  Contact Stacy Spector,Esq., at 516 747 6700 x 304 or
How to calculate your demand if customer wants out of contract
            Our customer wants out of our monitoring and service contract [actually it’s your Residential All in One].  How do we figure out what to demand to let the customer cancel?  Also, does it matter if the customer has some valid reason, such as military or job transfer, illness, moving or death?
Name withheld
            I suppose there is an initial issue that you should address:  do you want to bother pursuing a cancelling customer or just move on?  It may depend on whether you get one or 20 or more cancellations a month, the amount of the RMR, whether you’re equipped to deal with collection matters and whether a quick resolution is possible.
            You are asking about a residential account, but the same principles apply for commercial accounts, though the RMR is likely to be much higher.
            Your first consideration is what are you entitled to under the contract?  The “legal paragraph” makes clear that you are entitled to 100% of whatever is owed to date, 80% of what’s owed to end of contract and, at your option, 80% of the agreed value of any equipment that belongs to you and you elect to sell to the customer; plus legal fees and collection costs.  The amount for one contract can be significant, or the aggregate amount of all defaulting customers within a month can be significant.
            Once you know what you are entitled to, you can then decide if you don’t really want to be bothered, in which event you accept whatever is offered, or nothing, and move on.  If however the dollars are enough, singularly or in the aggregate, you should have a procedure for collection on these defaulting accounts.  Since you use the Kirschenbaum Contracts ™ K&K’s Collection Department will support you and the contracts.  That process starts with your signing a Retainer Agreement for collection matters.  Legal fees are 1/3 of what’s collected plus you pay out of pocket expenses.  We take the case through the arbitration process and then you may need local counsel to confirm an award, but you get legal fees for that too.  Contact Kathleen Lampert at or 516 747 6700 x 319 to get started.
            What can you expect on recovery?  We are able to resolve, settle, over 75% of the assigned cases.  Of the 25% remaining, a good percentage is dropped because we determine they are not recoverable; no point wasting good money after bad.  On a small percentage we decide to proceed to arbitration award and then judgment with the expectation that there will ultimately be a recovery because the customer is unable to avoid payment.
            You should screen out cases before sending them to us if you don’t want to pursue them, such as military, illness or death.  If the location is taken over by another customer it may not be worth suing the defaulting customer.  

Register Now for the CS webinar series: 
Electronix Systems C.S.A:  August 18, 2020  12 PM ET
Emergency 24:   August 19, 2020 12 PM ET
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

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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