KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on your kid in your alarm business / comment on appreciating employees / municipalities / Contract Sale Almost Over
January 10, 2023
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The 2023 annual contract sale is over in a few days and you're going to miss out on substantial savings if you don't act soon. The longer you delay the longer you will have to wait for your new contract forms. Order today. See the deal terms below and don't worry - order all the forms you need - we will apply the discounts when we process the order.
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Comment on do you want your kid in your alarm business from article December 27, 2022
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Ken
Tough question to answer. As a second generation owner I'm grateful for this business and the tremendous growth we've had. We have a long way to go through to repair the operations and make it a stronger company. If it's going to go to my kids I want the company running smoothly with or without them so they can actually enjoy a vacation with their kids. I have yet to enjoy a vacation in my entire life. It's getting better and better each year but still a long ways to go. If I can get it where it needs to be then they're welcome to it. If not, I won’t be able to recommend it.
Respectfully,
John
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Ken
Do I want my kid in the alarm business? Damn right I do! Jim Jr's making more loans to help dealers grow and solve money problems than I ever did. I get to watch 😊
Jim Wooster, Sr
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Response
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More customers, higher profit margins, RMR. It’s not that complicated, though getting the customers is the first step; keeping them the next. Obviously a lot goes into both processes. It’s the beginning of a new year. You need to know how many customers you have; how many monitoring accounts; how many service plan and inspection plan accounts with RMR. Make a note. Keep track. If not monthly definitely by end of year so you can compare year to year. Your kids have plenty of time to enter your business and when they do you should be looking at a chart that rises year to year.
Remember, your kids aren’t looking to get into your business to bust their butt. They want the good life and if you plan right they will have it.
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Appreciating employees from article on December 26, 2022
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Ken
VERY NICE Christmas message and thank you for sending it!
Pete
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Ken (and family)….
Believe it or NOT I REALLY appreciate you and your comments on improving (or at least TRYING to) our vocation……
Your comments and recommendations (*as well as your guest commentators) are mentioned to many of us at different alarm associations!
Be well and may 2023 be a much better year for all of us!
Respectfully,
Joseph
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Municipalities
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Ken,
We do work with several municipalities using your agreements and it seems that this particular municipality states that they cannot be bound to the agreement terms based on below”:
“According to MS Municipal Law, “any contract that extends beyond the term of the governing boards without express statutory authority is voidable at the discretion of the successors. Under the common law in Mississippi, governing bodies, whether they be elected or appointed, may not bind their successors in office by contract unless expressly authorized by law, because to do so would take away the discretionary rights and powers conferred by law upon successor governing bodies.” Our Board of Aldermen are elected for 4-year terms, and all of the provided agreements span multiple terms.”
Although I’ve heard many different arguments regarding our protective clauses, I’ve never heard of such a law being used as a legitimate reason to cancel. It seems strange they didn’t disclose those limitations when presented with the agreement for execution.
I’m not planning to push this with the municipality, but more interested to know if the State of Mississippi does actually have this written into municipal law.
name withheld
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Response
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There are a number of legal issues that you should be mindful of when contracting with a municipality. It’s very possible that the person or agency you are dealing with may not be aware of their own constraints, or they may not be aware that you contract has provisions which trigger municipal laws, or they may not care because they know the contract terms that violate municipal law won’t be enforced anyway.
I don’t think Mississippi is unique when it comes to these municipal laws. So when dealing with a municipality, whether the provision is challenged at time of signing or not, the general rule is that a municipality:
* can’t indemnify you
* can’t name you as additional insured
* can’t enter into a long term contract, sometimes limited to one year
* may not agree to arbitration, though that may be something the city attorney prefers rather than a law
The long term contract, the issue that prompted your question, is usually justified by budgetary issues. The municipality doesn’t want to burden future administrations with multi-year contracts. There may be permitted exceptions. Even if the municipality agrees to a long term contract it may insist that it be permitted to cancel “for convenience” or for any reason, which of course negates the long term contract provision.
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