Fire Extinguisher Auto Renewal Contracts

[Danny2019]

Hi thanks for reading and answering my questions.
I run a small restaurant business, employ 6 people.
I have signed a rental agreement for fire extinguisher for my restaurant in 2013. The rental contract is 5 years, After finding out my yearly rental fees is almost same as buying a new extinguisher I decide to cancel my rental contract with this company. However I just find out my contract has been auto renewal and now has 4 years and 1 month left. I understand I have sign a 5 years contract back in 2013, but I am not aware that the renewal is another 5 years. There is no reminder contract is due for renewal. Apparently it is on the small print. So the fire safety company want to charge me 4 years rental of the extinguisher plus cancellation fees plus collections fees of the extinguisher. The total cost termination fees is equal to buying 2-3 times the new extinguisher.

Moral of this story, Do not be push to sign an agreement, These company will say your business is breaking fire safety law and your business will be force to close because it can be hazards to the public. They will try to sell their extinguisher at 10 times of the price and small business can't afford it. then they sell their rental extinguisher which is 10 times cheaper, and you thought you got a good deal, but once you sign you can't get out. Its a TRAP.

Please advice me what to do with this kind of unethical company.

 

[Newchodge]

Hi thanks for reading and answering my questions.
I run a small restaurant business, employ 6 people.
I have signed a rental agreement for fire extinguisher for my restaurant in 2013. The rental contract is 5 years, After finding out my yearly rental fees is almost same as buying a new extinguisher I decide to cancel my rental contract with this company. However I just find out my contract has been auto renewal and now has 4 years and 1 month left. I understand I have sign a 5 years contract back in 2013, but I am not aware that the renewal is another 5 years. There is no reminder contract is due for renewal. Apparently it is on the small print. So the fire safety company want to charge me 4 years rental of the extinguisher plus cancellation fees plus collections fees of the extinguisher. The total cost termination fees is equal to buying 2-3 times the new extinguisher.

Moral of this story, Do not be push to sign an agreement, These company will say your business is breaking fire safety law and your business will be force to close because it can be hazards to the public. They will try to sell their extinguisher at 10 times of the price and small business can't afford it. then they sell their rental extinguisher which is 10 times cheaper, and you thought you got a good deal, but once you sign you can't get out. Its a TRAP.

Please advice me what to do with this kind of unethical company.

Never, ever sign a contract until you have read every word and understood every word.
Never, ever rely on the word of the salesman if it contradicts the wrotten contract.
If you sign a contract with an auto renewal clause, ensure that you diarise the date by which you need to cancel.

 

[Mark T Jones]

Hi thanks for reading and answering my questions.
I run a small restaurant business, employ 6 people.
I have signed a rental agreement for fire extinguisher for my restaurant in 2013. The rental contract is 5 years, After finding out my yearly rental fees is almost same as buying a new extinguisher I decide to cancel my rental contract with this company. However I just find out my contract has been auto renewal and now has 4 years and 1 month left. I understand I have sign a 5 years contract back in 2013, but I am not aware that the renewal is another 5 years. There is no reminder contract is due for renewal. Apparently it is on the small print. So the fire safety company want to charge me 4 years rental of the extinguisher plus cancellation fees plus collections fees of the extinguisher. The total cost termination fees is equal to buying 2-3 times the new extinguisher.

Moral of this story, Do not be push to sign an agreement, These company will say your business is breaking fire safety law and your business will be force to close because it can be hazards to the public. They will try to sell their extinguisher at 10 times of the price and small business can't afford it. then they sell their rental extinguisher which is 10 times cheaper, and you thought you got a good deal, but once you sign you can't get out. Its a TRAP.

Please advice me what to do with this kind of unethical company.

Hah! I fell for that one way back when we started up many moons ago - and I'm in the leasing industry so definitely should know better

Strictly speaking you are over a barrel, though we chose to play hardball, stopped the DD and effectively said 'so sue us'.. Eventually they caved in & settled for a relatively small sum (leaving us with the extinguishers)

Moving forward - do what @Newchodge says

 

[Employment Law Clinic]

Its a TRAP.


Please advice me what to do with this kind of unethical company.

I had a retainer client until very recently – they sold their business, the new owner not requiring my services as they had alternative arrangements in place.


The terms of my engagement “small print” (which wasn’t small at all – is any “small print” small anymore? Can’t people use a zoom function on a PDF?) permitted termination at anytime, so I simply lost a good client, effective immediately. Nothing unethical about that, and nothing unethical about those that sign you up for a longer, repeating terms – the terms you received & agreed to in advance.


As long as they’re providing the services you contracted them to provide, for the fees you agreed to, it’s not a trap, or unethical. It’s a reminder that you need to read the terms before you agree them. If you need to put a reminder in your diary for 3½ years later, note that at the time of signing – maybe make an entry in your diary for late 2022 to decide whether you’ll continue in 2024.



Karl Limpert

 

[Mark T Jones]

I had a retainer client until very recently – they sold their business, the new owner not requiring my services as they had alternative arrangements in place.


The terms of my engagement “small print” (which wasn’t small at all – is any “small print” small anymore? Can’t people use a zoom function on a PDF?) permitted termination at anytime, so I simply lost a good client, effective immediately. Nothing unethical about that, and nothing unethical about those that sign you up for a longer, repeating terms – the terms you received & agreed to in advance.


As long as they’re providing the services you contracted them to provide, for the fees you agreed to, it’s not a trap, or unethical. It’s a reminder that you need to read the terms before you agree them. If you need to put a reminder in your diary for 3½ years later, note that at the time of signing – maybe make an entry in your diary for late 2022 to decide whether you’ll continue in 2024.



Karl Limpert

Whilst I'd legally agree, the reality is that the sector in question is really very dirty in their selling tactics; which is why they tend to fear going legal.

 

[WaveJumper]

I think its clear that any business should recognize is responsibilities under H&S / fire risk assessment etc and ensure that provide the necessary training / equipment where required, you then look at all the options price them up and find the right deal for your respective business. Signing any contract these days from pet insurance to waste management to photo copiers will range from 1 year to 5 year contracts and from my experience they all have an auto renewal always double check what you are signing and make sure you put in your diary the date you would need to trigger your way out

 

[Danny2019]

I had a retainer client until very recently – they sold their business, the new owner not requiring my services as they had alternative arrangements in place.


The terms of my engagement “small print” (which wasn’t small at all – is any “small print” small anymore? Can’t people use a zoom function on a PDF?) permitted termination at anytime, so I simply lost a good client, effective immediately. Nothing unethical about that, and nothing unethical about those that sign you up for a longer, repeating terms – the terms you received & agreed to in advance.


As long as they’re providing the services you contracted them to provide, for the fees you agreed to, it’s not a trap, or unethical. It’s a reminder that you need to read the terms before you agree them. If you need to put a reminder in your diary for 3½ years later, note that at the time of signing – maybe make an entry in your diary for late 2022 to decide whether you’ll continue in 2024.



Karl Limpert

Understand and agree with you, that I should have read all the terms before signing. But it's difficult to stay cool after been told my business will be force to closed because it's breaking fire safety law. And they verbally make me believe that they have the power to close my restaurant. I don't this is ethical at all.

 

[Mr D]

Understand and agree with you, that I should have read all the terms before signing. But it's difficult to stay cool after been told my business will be force to closed because it's breaking fire safety law. And they verbally make me believe that they have the power to close my restaurant. I don't this is ethical at all.

If a restaurant doesn't meet fire requirements can it be closed down by anyone?

 

[Root 66 Woodshop]

Shelf Life of a Fire Extinguisher. A fire extinguisher's shelf life will vary from manufacturer to manufacturer – it can last anywhere from 3 to 12 years. Look for the tag (typically located at the bottom of the fire extinguisher); for the expiration date and manufacturer's instructions.

The 5 year contract that you originally purchased, would most probably state that they'll re-new your extinguishers every 12 months or it may say every 2 years, this is more for your benefit than their own to be honest... I mean, lets say you go and buy your own... how long have they been sat on the shelf at your suppliers? this is what you should be thinking about

 

[Root 66 Woodshop]

If a restaurant doesn't meet fire requirements can it be closed down by anyone?

A fire officer will normally give 1 - 3 months to get up to code, depending on how bad they are...

 

[Mr D]

Shelf Life of a Fire Extinguisher. A fire extinguisher's shelf life will vary from manufacturer to manufacturer – it can last anywhere from 3 to 12 years. Look for the tag (typically located at the bottom of the fire extinguisher); for the expiration date and manufacturer's instructions.

The 5 year contract that you originally purchased, would most probably state that they'll re-new your extinguishers every 12 months or it may say every 2 years, this is more for your benefit than their own to be honest... I mean, lets say you go and buy your own... how long have they been sat on the shelf at your suppliers? this is what you should be thinking about

Change them every 12 months, put in another company... until time is up.
Nice gig.

 

[Danny2019]

If a restaurant doesn't meet fire requirements can it be closed down by anyone?

This is the problem, what are the requirement? 2 extinguishers 4? 6? how many should a small size shop requires? I had 3 before and they said I need 6.

Just like MR Mark T Jones said above post These company use very dirty tactics in their selling.
Contract length is 5 years than Auto renewal for another 5 years and same again after 5.

The yearly rental price I been charge is almost same as buying a new extinguisher. Which means I don't need them to service or recharge the extinguisher. I just need to buy new one to replace when the extinguisher expires.

The question is how (best way) do I get out of this Auto renewal contract?

 

[Chris Ashdown]

I got stung by probably the largest HR company in the UK who organises local free to attend meetings and then tell all new company owners horror stories about employment issues and tries to get you to sign up t a long reoccuring contract

I actually got it reduced to two year from their 5 year minimum and escaped with the lesson learnt

After that i never found anyone selling to me who would not take a one year fixed term to test them out despite initially asking for 2 or 3 year recurring contract

Be firm you are buying you are setting the rules of the contract , they can take it or leave

To answer your question, you are lumbered you signed the contract and there is no way out unless they don't meet their side of the contract

 

[Mr D]

This is the problem, what are the requirement? 2 extinguishers 4? 6? how many should a small size shop requires? I had 3 before and they said I need 6.

Just like MR Mark T Jones said above post These company use very dirty tactics in their selling.
Contract length is 5 years than Auto renewal for another 5 years and same again after 5.

The yearly rental price I been charge is almost same as buying a new extinguisher. Which means I don't need them to service or recharge the extinguisher. I just need to buy new one to replace when the extinguisher expires.

The question is how (best way) do I get out of this Auto renewal contract?

To get out of it? Notify them at the appropriate time that you wish to cancel. Put a note in your diary for the relevant date in order to meet the requirements.

If they are smart they will not breach the contract so you cannot leave early.

Next time read the contract first. There are a lot of companies around who will hold you to the contracts you sign.

 

[chalkie99]

if it contradicts the wrotten contract.

I like the idea of that - a useful new word - very appropriate when studying what you are asked to sign!

 

[Newchodge]

I like the idea of that - a useful new word - very appropriate when studying what you are asked to sign!

sometimes, the keyboard knows what you want to say, even if you don't.

 

[Mark T Jones]

To answer your question, you are lumbered you signed the contract and there is no way out unless they don't meet their side of the contract

In cases where there is reasonably strong evidence of mis-selling there is a good chance that courts will rule the contract unenforceable. Most of the rogue operators are aware of this and would rather simply move on that risk losing in court.

If was was the OP I'd be collating details of what was said in the sales process and cancelling my payment.

 

[Chris Ashdown]

Fine so where do you get the evidence, he said, you said, The contract is what you signed, you did not read it and or understand it then why did you sign

Just take it as a relatively cheap lesson in business, it could have been far worse

 

[Mark T Jones]

Fine so where do you get the evidence, he said, you said, The contract is what you signed, you did not read it and or understand it then why did you sign

Just take it as a relatively cheap lesson in business, it could have been far worse

It's a gamble - at a guess I'd say 70:30 in the OP's favour

On the other hand, the OP doesn't have to take any action other than to cancel a DD and notify them of why.

County Courts are fairly renowned for favouring the underdog; in this case the OP as the victim of shoddy selling.

 

[bodgitt&scarperLTD]

Agree entirely with Mark. OP doesn't have much to loose.

Just has to say he felt pressured, threats of being reported for not being up to code etc. Highly unlikely the fire company has phone records going back seven years (if at all!) and it's not like they haven't got their pound of flesh already.

Being hard nosed in business often gets results. Sometimes you just need to tell people to swivel.