*****************************************************************************
I warned you about this. Dealer wants to switch central stations. Dealer thinks his lines are on his own lines that he owns. In fact the Installer Agreement does mention the lines but not clearly. Dealer tells central station it wants to leave and requests that the lines be transferred and that the central station sign RESBORG forms to effectuate the transfer. Central station refuses, claims that the lines are owned by the central station and that the alarm company has a 3 years commitment for each subscriber account and also that the alarm company is required to put all of its accounts with this central station. The Installer contract is in renewal term, so the original term has expired. In central station's state automatic renewal is permitted without any conditions precedent [such as notice].
Dealer is stuck. Well, dealer could make a fuss and put up a fight, but to top it off the east coast dealer is with a west coast central station and the Installer Contracts states that disputes will be determined by California law and in California. As I said, this dealer is stuck.
My central station clients may be saying what's the beef? And, they may be right. Though the Installer Agreement I read was silent about any incentives the dealer received, there could have been incentives provided by the central station that more than justified the term and other provisions. A central station that offers a dealer a forgivable loan, no set up charges and reduced rates is justified insisting on a long term relationship, exclusivity and early termination charges or no termination at all.
This is precisely why I revised the Standard Installer Agreement and now call it a Dealer Agreement. Yes, it does contain the same provisions mentioned above, but these provisions are highlighted on the front of the Agreement with check boxes. Unlike the dealer who was surprised to find out what terms it had agreed to, this Dealer Agreement is transparent; the tough provisions are listed up front.
It's more than time for you to review your central station agreement. You might be surprised to find out that you've agreed to
- long term commitment
- exclusive commitment
- higher than competitive rates
- not on your own lines
- not allowed to move if you're in default
- not entitled to electronic data
- not entitled to signed Resborg forms
- suffer early termination charges
- provide indemnity
- provide insurance coverage
- use terms and conditions in your contract that protects the central station, not you
- use terms in your agreement that are less favorable than terms in your standard form terms
- right of first refusal if you want to sell
- required sale to central at set price that may be below market
Tell your central station you want them to get the new Dealer Agreement for www.alarmcontracts.com. Then when you sign your agreement at least you won't have to hunt through fine print to find all the ways you're getting screwed. And who knows, you might be able to recognize the important stuff and make a better deal for yourself.
*******************************