You can read all of our articles on our website.  Having trouble getting our emails?   Change your spam controls and white list 
Comment on using letter for renewal contract
August 15, 2018
Comment on using letter for renewal contract from August 8, 2018 article
            This is in response to your post about “getting around renewal notice with signed letter by subscriber” from yet another one of your faceless anonymous posters.  I have a particular interest in this one because he obviously is referring to one of our accounts that he would like to steal.
            First, as to your response, I agree with most of your analysis and of course your implied belief that the renewal letter will hold up (more on that in a moment).  However, your statement that a full blown renewal contract would be the better practice to bring it up to date has practical issues.  We have found that securing a whole new contract is more risky than the letter approach, primarily because it many times forces the subscriber to reconsider all the terms themselves or even worse: consult attorneys who of course try to rip it to shreds.  By using the letter approach, the subscriber recognizes he has already agreed to the terms and as a result the renewal “success rate” is enhanced.  As for the “risks” you mentioned in going the renewal letter route, you are correct that it keeps the original contract language in force but as a practical matter as long as the key provisions are in place and valid—primarily the limitations on liability and (in our case) the alarm company’s ownership of the system—is that really such an issue?  I don’t think so, especially given the aforementioned risk in actually sending out new contracts.
            Now to the real world.  For your information (and that of the under the rock poster), we have already litigated cases relying on the renewal letter and each time the new term has been upheld.  So, thank you for now putting everyone on notice about this.  And to the poster in particular, if you want to compete fairly go right ahead.  But if you try and take an account of ours with time left on our contract (INCLUDING THE RENEWAL LETTER TERM) and/or use our system to steal our account, we will sue you for tortious interference of contract and/or conversion, as appropriate.  And that is a promise which Ken can attest to first hand.
Robert Kleinman, Corporate Counsel
AFA Protective
            I’m happy to broadcast the message, “don’t mess with AFA”.   But I think there is new medication for paranoia and you may want to look into it.  I have no idea if the original letter is about AFA or from a competitor in an AFA market.  On the other hand, just because you’re paranoid doesn’t mean someone isn’t out to get you.  I can attest that AFA stays on its toes.
            There is another alternative to the letter requesting an affirmative confirmation of acceptance from the customer, and that alternative [besides a new contract] is complying with the state’s automatic renewal statute, if there is one.  You can check your state law, if there is one, on the K&K website here:
            Complying with an automatic renewal statute may be as easy as a notice stating that the contract is automatically renewing unless canceled; no return letter required.
            You have to be mindful that using an updated contract also offers the opportunity to update the system.  Continuing with the old contract works well for AFA because AFA us primarily in the commercial fire alarm business, so it’s systems are not voluntary and are not updated unless required by the AHJ.  But security systems, both residential and commercial, are typically voluntary [by which I mean not required by law] and with technology changing so fast you can probably offer something new every 6 months.  Certainly after a 3 or 5 o5 10 year term there must be something new to offer.  Companies should know their customers and have an idea whether a customer is approachable for new ideas, new systems and protection, and a new contract.  If not, then let the automatic renewal run its course.
            Another consideration.  AFA is primarily concerned with the protective provisions, particularly the limitation of liability clause, and the retention of ownership of the equipment provisions.  Less thought is given to the value of the contract; the equity it creates.  Most other companies, the non-public ones, are very concerned with the value of the contract, how it adds value to the business.  That consideration is going to be directly affected by how salable the contract is and how much a buyer is going to be willing to pay for the contract.  You may find that a potential buyer is less enthused with a “letter renewal” than a new contract when it comes to offering a multiple on the RMR. 

Note: I just want to remind you that if you are getting duplicate emails from me daily because I am using two bulk email service companies. The two companies seem to reach different addresses. Feel free to delete one email. If you want to unsubscribe you should do it from both emails. You can always read our emails on our website at


alarm classifieds alarm security contractsThis area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business  brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;

There is no charge to post a listing here.Include your contact information, phone, email and web site.  If you would like to submit a posting, please send an email to  To create a reciprocal link to our website, click here.
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

Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
516 747 6700