KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** How do contracts deal with wifi and early termination May 17, 2025 ********************* How do contracts deal with wifi and early termination ********************* Ken, Our security agreements have something in the term length clause saying if they cancel early they will owe 80% of the remaining balance. Does it outline what the repercussions are for early termination? I didn't notice much in the contract that pertained to wifi specifically. Do you know if there are regulations or requirements that have to be maintained around connectivity or uptime? Would anything else around the solution itself be something we just detail out in our scope of work? I was hoping for a template as well since we've never mention wifi. Eric *********************** Response *********************** The Kirschenbaum Contracts TM share common provisions and themes; there is no "early termination" provision [except one state does require those words be used so we use them in that state]. Early termination when initiated by the subscriber, constitutes a breach of the agreement, triggering the default provision. Generally the subscriber will owe 100% of all charges to date of default and 80% of the balance of the contract term. If equipment is owned by the alarm company there is usually a right to sell the equipment to the subscriber for 80% of the "agreed value". A subscriber inquiring about early termination should be advised to read the contract provision dealing with termination, entitled Legal Action. A subscriber may ask why bother to pay the contract amount when terminating early rather than wait for the alarm company to pursue collection. The answer is that if you refer the collection to an attorney you are entitled to legal fees, which can substantially increase the amount owed by the subscriber. The bottom line is that there is no early termination, just as there is no early termination when you lease a car or a piano or anything else; subscriber is responsible for the entire term because that's what you expected when you entered into the contract and structured your charges. Wifi is covered in the Standard Form Agreements and it's clear that arranging and maintaining wifi connection is the responsibility of the subscriber, along with electric and any utilities required. Recently more than one alarm company advised that it was re-selling the wifi service, so obviously the Standard Form Agreement needed modification, but most alarm companies do not provide wifi or communication pathway service [again AES and other radio companies may be exception]. Any special considerations in an agreement can be detailed in the Schedule of Equipment and Services. ********************* STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: 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. ************************** 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
