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Re: Evergreen Clause



On Nov 15, 11:35 am, Bob La Londe <alarm_wiz...@xxxxxxxxxxx> wrote:
> One company buys out another and immediately raise rates by $10 a
> month.  Then they send out a mandatory contreact renewal which says
> you have to sign a 36 month minimum contract.
>
> "Term.  The initial term of this agreement shall start on the date of
> this agreement and continue for 36 months thereafter,  This agreement
> shall automatically renew for successive 36 month terms unless either
> party gives written notice of termination to the other at least 60
> days before the end of tyhe then current term.  Any notice of
> termination under this agreement by customer shall be void unless sent
> via certified mail, return receipt requested, and actually received by
> company."
>
> Sounds like a pretty much standard contract term for the alarm
> industry with the except of the rather short (60 days) prior written
> notice to cancel.  I would have just considered it business as usual
> if received from Brinks or ADT or P-1.  This was from my dumpster
> service.  They should be getting their dumpster the "F" off my
> property by end of business tommorrow.
>
> Bob La Londe
> The guy who decides who we do business with.
>
> The Security Consultant
> PO Box 5720
> Yuma, Az 85366
>
> (928) 782-9765 ofc
> (928) 782-7873 fax
> alarm_wiz...@xxxxxxxxxxx
>
> Contractors License Numbers
> ROC103040 & ROC103047

RHC: Well, I don't want to restart the endless argument for or against
long term contracts here, but if this is an acceptable way of doing
business for the alarm industry, then why isn't it acceptable for any
other business ?  I hope you see the irony here; it's not meant as any
sort of criticism in response to your post. I am simply pointing out
that if this sort of dreadful contractual arrangement is OK for alarm
companies to engage in, then it should also be acceptable for other
industries to try to "guarantee their revenue stream" as well.

I do believe that alarmco contracts usually give you the option to
totally opt out of the contract if they raise the rates beyond the
cost of living clause normally included in the contract. In this
sense, they are certainly slightly fairer than this companies
contract.



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