KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Why month to month renewal and how to prep for sale
July 1, 2026
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Why month to month renewal and how to prep for sale
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Ken,
Concierge Client here...
Our current contracts have a 2 year term length. Should these renew year to year or month to month after the initial term is over?
I believe I recall you recommending month to month, but am unsure of the reason.
Also, I am looking into selling my accounts in the next year. I'm currently getting all customers signed on the K & K contracts. What else should I be doing to prepare for this to get the highest multiple?
Thank you.
Lindsay
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Response
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I recommend month to month renewal. Here's why.
Most states have laws affecting automatic renewal, and when there is a law it generally requires notice of the renewal, either in the contract language or specific notice of renewal served at a specific time and manner. I don't think I know of a dealer who sends out the notice of renewal. The law usually excepts month to month renewal. Even if your state doesn't have a law, it might enact one while your contract is still in term, and then it won't be compliant for the renewal period. It's just not worth the risk.
On the flip side, there's also nothing to be gained. A contract that renews for 5 years isn't, in my opinion, worth any more than a contract in month to month renewal. By contrast, a contract with no renewal provision or if renewal laws were ignored, is worth zero, in my opinion.
Want to get yourself in best shape for best price when you sell, use "best practices", and that starts with joining and using the K&K Concierge Program. Establishing a relationship with a lawyer to specializes in your industry, and has for 50 years, is, again in my humble opinion, valuable. Reading these emails is free and valuable. What will you hear? use proper contracts, comply with all laws, all industry laboratory guidelines, use skilled technicians, pay your taxes, select a reputable central station, have your accounts segregated on your own line, maintain E&O coverage, and more. I'll offer one bit of advice in conclusion, it's just as easy to do things right and less costly to do things right in the long run, than doing things wrong, even it's been the way you've always done it.
After joining the Concierge Program, update your contracts, start using them, build up your RMR for monitoring, service and inspection and other RMR items on the contract, engage K&K to market and sell your company and K&K to represent you for legal work. K&K charges about half what industry brokers charge for commission. Only K&K posts listings on The Alarm Exchange.
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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
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
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