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SUING FIRE ALARM ACCOUNT
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Ken,
    I have a client with a commercial fire alarm system that we have been providing monitoring & annual inspection services for the past four years. He originally signed the Central Office Monitoring Agreement and Standard Inspection and Per Call Fire Detection Equipment Service Contract with us for a term of 5 years.  He recently had another company come in and take over the monitoring and inspection for him because he said we were “to expensive”. He still has 1 year left on the agreement with us, but says the business name it was under is not around anymore because he formed a new company. On the contracts he originally signed his signature is on both the Subscriber line and the Personally Guarantee line. What would you suggest we do to try and collect on the remaining year of monitoring and service?  
    What about all the claims I read on your daily post about subscriber breach of contract and the ability to pursue the company that took over service when the account was still under contract with us?     Please post this as anonymous if listed on your daily email.
anon
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RESPONSE
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    You can sue the subscriber named on the contract and you can sue the individual who signed the guarantee.  You shouldn't be providing any service to the new company.  You can try suing that company too as a successor company.  
    Your problem is that you have only one year left.  You don't mention what your RMR is, but your contract will permit suing for the balance of the contract term, less 20%.  You can also recover your counsel fees.  
    Your options are small claims court or a more formal lawsuit commenced by a lawyer.  My office does litigation in New Jersey and we will support the agreements we have prepared and provided, so that is an option also.  
    If you aren't particularly active pursuing subscribers who have defaulted you may want to wait a few months and see if you cool off.  Getting involved in the collection process may not be worth your time or the up front costs.  Don't allow emotion to dictate your action in this matter;  It should be a purely economic analysis.  
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HOW MUCH SHOULD LICENSE QUALIFIER CHARGE
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Ken,
    I really enjoy your daily newsletter. Its very informative and a must for every security professional.
    I was looking for information regarding what is average fair compensation for Alarm Business qualifier.   Also, what if any responsibilities does each state require from the alarm qualifier.  Any insight would be appreciated. Please keep me anonymous
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RESPONSE
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    States that require a license to engage in the alarm business all have different qualifications and duties.  For that reason when we prepare a Qualifier Agreement between the alarm company and the Qualifier we customize it for the particular state as well as the specific deal made between company and qualifier.  The amount a qualifier will want will depend on a number of factors, one of which is the number of companies that qualifier can qualify for.  If it's only one then the qualifier may want more, whereas if it's several the amount may be less.  Qualifier compensation generally runs between $500 to $2000 per month.  That is for qualifying and performing the statutory requirements.  Keep in mind that even in states that don't limit the number of companies a qualifier can qualify for, that qualifier will still have to demonstrate to the licensing agency that the qualifier can perform all of the required duties for all of the licensed companies.  
    In addition to the base compensation the qualifier will want to be reimbursed for actual expenses and time spent in performance of licensed duties.  These rates will vary based on experience of the qualifier.  
    There are different considerations when the qualifier is also regularly employed by the company.  That employee's compensation may already include the license and license duties.
    For our Qualifier Agreement contact our Contract Administrator Eileen Wagda at 516 747 6700 x 312 and she will put you in touch with our attorneys in our Alarm Licensing Department.  Our charge for the Qualifier Agreement is $1500 and the company should pay that charge, not the qualifier.
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