Termination Of Contract

[ARIZONA] I own a security company in Arizona. We install alarms systems in homes and businesses if the customer agrees to sign a 36 month monitoing contract. My company installs the alarm system and supplies the equipment necessary for the installation. The contract is then purchased by the company who provides the monitoring services for the customer. We act as an Authorized Dealer for the company that we sell our contracts to. We sign a contract to become an authorized dealer for the company who agrees to purchase contacts form us at a set rate depending on the customers FICO score. Our company agrees to guarantee 12 months of payment with each contract submitted and purchased by the monitoring company. If the customer stops paying or cancels within the first 12 months of the 36 month agreement, our company is back charged the entire amount that we were funded. It then becomes our responsability to recover the cost of the contract and equipment from the customer by way of collections. The monitoring company also keeps 10% of the funding for each account as a hold back that is paid to our company at a rate of 5% when the account reaches 12 months and the other 5% once the account reaches 36 months and completes the initial terms of the contract. My question is, if the company who we were an Authorized Dealer for decides to shut down the dealer program without any warning. Is my company still liable for the accounts that cancel within the first 12 months. The contract states that we are first given the opportunity to replace the canceled account with a new account. My company had a seperate service contract with the same company to service any customers in our area. They deducted the funds for an account that canceled from the money we invoiced for service. This is a seperate department and seperate contract that we never agreed to have any money deducted from, and the contract never gave them permission to take any funds from the service money we were owed. I've found many issues with the way accounts that are within 12 months are handled by this company. If my company is responsible for the account for 12 months, they shouldn't be able to provide the customer with the information needed to cancel without notifying our company or providing the customer with our companies contact information to allow us the opportunity to try and work out the issues with the customer. I've found that the company does a poor job when it comes to customer service and they're not telling the trueth when they provide notes on the accounts. I'd appreciate whatever advice you can provide to me.

Thanks,

BTM
1STRSS@tmo.blackberry.net