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What You Need to End a Managed Print Service (MPS) Agreement Skip to main content

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What You Need to End a Managed Print Service (MPS) Agreement

Thu Apr 13, 2017 | Lasers Resource


Sometimes, relationships end.  This includes business relationships.  Believe it or not, it is not always the easiest to get out of things like maintenance contracts and lease agreements.  We want to make sure that you know the steps to take when you are ending a managed print service (MPS) agreement or switching partners.

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The main, and most important, point to cover is to review your agreements and see if there is a time frame in which you need to provide written notice of cancelation. Normally, this is between 60 and 90 days before the end of the contract. 

Be aware! This means you must provide written notice to BOTH your MPS partner and your lease provider.  Although it is incredibly shady, we have heard countless stories of companies providing a letter to the MPS partner, and then having that partner not inform the lease provider, so your lease gets auto renewed for another year and then you’re stuck with the maintenance agreement as well. It is wrong and we want to make sure this doesn’t happen to you.

The MPS Letter 

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The first letter you are going to want to write is to your MPS partner.  You will need to let them know that you wish to end your partnership, and will need to work with them to return any rented equipment, return any unused supplies (those do actually belong to the MPS partner) and anything else that is in your agreement that would need to be cover.  You will want to work on creating a time frame with them for all of this. 

An example of this letter is:

[Date]

[Your company]

[Your company address]

The purpose of this letter is to provide formal notice, as of the date shown above, [Your company] intent to not renew the current [MPS Partner] agreement, executed on [start date], for [printers and copiers].  Pursuant to that agreement, you require a minimum notice of 90 days in order to avoid an automatic renewal of said agreement. This letter provides the required notice.

We are also requesting a statement of any and all amounts due from [Your company] to [MPS partner] that may be required to satisfy this agreement. This amount should be provided to [Your company] in advance of our next monthly payment due date, and should be provided in writing to [Your company] at the address shown below.

Finally, also pursuant to the Accompanying [Leasing agent] Lease Agreement, please provide the designated return location for [printers and copiers], which we assume to be your local business address.

Please respond in writing to the above requests, no later than the date of our next monthly payment due date under the Agreement. Your written response will constitute your acceptance of this cancellation.

Please contact me at [Your phone number or email] if you should have any questions.

Thank you for your cooperation in this matter.

Sincerely,

[Your name and company contact information]

Replacing all the bolded sections with the correct information.

The Lease Letter

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The second letter you should write is to your lease provider. This letter will be very similar to the other one, but here you will also want to focus on the lease. 

An important thing to know is if there is any kind of lease buyout. If you have a fair market value lease, then you will need to satisfy that amount and any additional fees there may be. A dollar buyout lease will need to be satisfied as well before it can be closed.

In the letter, you will want to be sure to ask for the address that you will return the equipment to if you aren’t purchasing them. It will fall on you to ship the devices back unless otherwise stated in the lease.

An example of this letter is:

[Date]

[Your company]

[Your company address]

To Whom It May Concern:

The purpose of this letter is to provide formal notice, as of the date shown above, of [Your company]  intent to not renew the current [Leasing agent] lease agreement, Number ______ for [printers and copiers] that was executed on [Date], at a term of ______.  Pursuant to that agreement, you require a minimum notice of 90 days in order to avoid an automatic renewal of said agreement. This letter provides the required notice.

We are also requesting a statement of the final amount due (“lease buyout”) as of today’s date, required to satisfy our financial obligations under this agreement. This statement should include any and all amounts due from [Your company] to [Leasing agent] This amount should be provided to [Your company] in advance of our next monthly payment due date, and should be provided in writing to [Your company] at the address shown below.

Finally, also pursuant to the Lease Agreement, please provide the designated return location for [printers and copiers].

Please respond in writing to the above requests, no later than the date of our next monthly payment due date under the Agreement.

Please contact me at [Your phone number or email] if you should have any questions.

Thank you for your cooperation in this matter.

Sincerely,

[Your name and company contact information]

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If you are getting a new lease for new devices afterwards, you will want to know how the buyout is being handled. If you will do a one-time payment or if the new lease rolled up the old one into the new one.  Taking the buyout and spreading it out within the new lease payment. This can be nice, not being hit with one large bill, but, more times than not, you end up paying more than if you just payed it.

Don’t miss one of the important points. Download our free Ending an MPS Agreement Checklist below.

Get the Ending MPS Checklist here! 

 

 


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