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 ****************************** how to handle several challenges to residential contract June 18, 2026 ******************* how to handle several challenges to residential contract ******************* Ken We are negotiating with a new subscriber who has asked us to make certain changes in the Residential All in One. We are a Concierge Client. Can you advise us on this: name withheld ******************** Response ******************** Any changes to the Residential All in One, or in fact any of the K&K Contracts, diminishes the effectiveness of the agreement. That doesn't mean that you can't compromise and make changes; it just means you need to be careful. Using your Concierge Client benefits is step in right direction and best practice. Let's go over the provisions prompting challenges: Prepay RMR: Subscriber states: "I would like to prepay the entire 36-month monitoring term up front rather than monthly billing. Since the full amount is being paid in advance, I request a 10% discount on the monitoring portion of the agreement to reflect the guaranteed prepaid term, elimination of billing/collection risk, and time value of money associated with paying the full term up front." Answer: You can agree to this if you want. Just change contract to say entire term paid in advance and change the amount of the payment to reflect the discount. Also state that it is non-refundable. Automatic Renewal: I would like the automatic renewal provision removed. At the end of the initial 36-month term, I would prefer any continuation of service to require manual renewal/approval rather than automatic renewal. Answer: You can agree to this if you want to. However you should add at the end of the 36 month term: "This agreement and all services will terminate without further notice on ___________ at _____________ o'clock. Any continued services will require a new agreement fully executed by the parties." Additional insured: I would also like the requirement that Alarm Co be named as an additional insured on my homeowner’s insurance policy removed from the agreement. I am not requesting coverage through my AAA homeowner policy and would prefer that provision be excluded. Answer: You can agree to this. You strike the "additional insured" language, not the entire paragraph. The issue regarding prepayment for sight discount is strictly a business decision, though it does goes hand in hand with the next challenge. Removing the automatic renewal provision is likely to affect the value of the account in the event you decide to sell your accounts during the term of this agreement; this contract would likely be excluded, and in any event you would be required to credit the prepayment amount. There could be sever consequences if you fail to stop service precisely when you are required to by the contract terms. If you continue to provide the service it will likely be without the benefit of the contract protection. With regard to the additional insured, of course I prefer the coverage, but you are still protected by the contract with the indemnity provision and waiver of subrogation provision; make sure those stay in. ********************* STANDARD FORMS 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email 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. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
