October 16, 2010

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Question:

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Ken

    I purchased your Central Office Monitoring Contract recently but am told by my third party Central Station that they require our agreement to cover them adequately otherwise they insist that our customer sign their agreement. I don’t like two agreements in front of one customer so I am hoping your agreement will suffice for both of us.

With Highest Regards,

P. David Shelton, CHS-II, President,

D/A Central, Inc.

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Answer:

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    This issue comes up a lot and is worth discussing again.  All central stations that provide wholesale monitoring services for dealers will want you to get your subscribers to sign the central station's monitoring contract.  This contract is for the benefit of the central station, not the dealer.  If the central station is using my Three Party Contract then some protection is afforded to the dealer, but the real focus to protect the central station.

    As a dealer - installer - you need your own Monitoring Contract.  If you use my Standard Form Monitoring Contract, or the Lease, or other contracts that provide for monitoring services, the central station will be adequately protected, and you should not hesitate to ask the central station to waive the use of its Monitoring Contract, provided certain conditions are met.  If the central station is smart, one condition will be that no subscriber will be set up for monitoring service unless a copy of your Monitoring Contract is provided to the central station.  Also, although the central station may waive its Monitoring Contract it may still need to have an information sheet filled out so that the monitoring account can be established.

    You need your own Monitoring Contract because it will contain the essential terms of your deal with the subscriber, such as your charges and length of term of contract.  The central station's contract probably doesn't contain that information.  Only be using your own Monitoring Contract will you be building RMR, which means equity for your company.  Also, only your Monitoring Contract will provide the protection you need before providing any alarm security services to a subscriber.

    If your central station won't accept my Standard Monitoring Contract in lieu of its contract [assuming that is important to you], then contact me for a recommendation on other central stations who will accept the Standard Monitoring Contract.  Many will.

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comment on free alarm systems

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DEAR KEN

    BRETT B TOOK THE TIME TO PROVIDE A EXCELLENT LONG STATEMENT ABOUT FREE SYSTEMS. I HOPE THE READERS OF THIS FORUM PRINT IT AND GIVE IT TO ALL OF THEIR SALESPERSONS.

I WOULD LIKE TO THANK HIM FOR TAKING THE TIME TO LAY IT ALL OUT. GREAT JOB BRETT !!!

    AND THANKS GO TO ALL OF THE WRITERS WHO TAKE THE TIME TO EXPRESS THEIR OPINION. MOST OF ALL, THANKS GO TO YOU KEN FOR MAKING THIS FORUM AVAILABLE.

NORMAN ADELMAN

AUTOMATION MANAGEMENT SYSTEMS INC