Drafting a Finder Agreement in Motion Picture Deals

Drafting a Finder Agreement in Motion Picture Deals

Drafting a Finder Agreement in Motion Picture Deals

Funding a motion picture is a large investment and an immediate necessity, from the indie studios to the mega production companies, money is not easy to amass. Companies will contract those who have the ability or access to find and produce those funds. A Finder Agreement should be drafted in depth and with clarity as there is no cut and dry process. Every project is unique, thus every contract will be different depending on the financial health and needs of those involved. address.


Notable Points to Consider in a Finder’s Fee Agreement

  • Deny elusive language and ambiguous words or terms. Using terms such as “best efforts” or “reasonable efforts” does not hold accountability nor does it measure what is expected of the Finder to obtain financing.
  • Instead, ask for clear conditions or qualifiers, and defining terms. Ak for these and thresholds that can be addressed, such as a time and dollar limit spent to accomplish the goal. Involved parties should remember that the agreement is to assist everyone in accomplishing their goals and avoid future litigations because those conditions or terms were not clear from the beginning.


Compensation for the Finder

  • Every situation is unique, but most contracts indicate the Finder’s fee as a percentage of the funds they bring in plus a small portion of the net profits of the movie if they are a profit participant. The percentage varies from 2%-5% based on how large the financial input is relative to the scale of the whole project .


Paying the Finder

  • It should be noted that the contract can be drafted to pay the Finder when receipts are produced for the actual money or the money used by the producers. Either way, a crucial term to include is that the Finder is not paid until the producers have the money.
  • All parties involved need to agree upon how the Finder is paid: either The Financier can pay the Finder or the money is processed through an escrow account, which can only be used when the producer has the right to use the funds.


What If It’s A Large Payout?

  • Agreeing to a sliding scale would be ideal for larger amounts of money. This way, funds are retained for the production companies and producers to actually make the film. An example of a sliding scale would be 5% of the 1st million, 4% on the second, 3% and so on until they reach 1%. After that point, every million is 1%.

Always talk to your attorney when discussing the complexities and difficult nature of these contracts. This is a small example of what a Finder Agreement may outline. In no way is this article supplanting the analysis or craftsmanship nor sophistication involved in drafting a Finder’s Fee Agreement.


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