When it comes to all papers that discuss the exchange of funds between a filmmaker and their investors, we recommend that you get professional legal assistance. The fact that you are asking these questions shows that you should receive the services of a lawyer to determine the best way for you and your investors to proceed. Who is the „filmmaker“ based on the above statements? Every actor, director, producer or talent also promised a piece of the backend. As a producer, you can use your 50% as a sales tool to attract talent. They provide what the industry calls „points.“ The points are backend percentages, and the film-investor agreement makes it all clear to all those involved in financing the film. In the case of a typical film production, the backends (net profits from the film) are divided fifty-fifty between the filmmaker and the investor. Film investors know that the chances of winning are slim, but they always want their money to be managed as best they can… However, this is your movie and you want to make sure you have control of your project. Alternatively, we offer our film Investor Agreement Outline, which contains explanations, standard clauses and key sections for active investors. It is not a comprehensive legal agreement, like the PPM, but guidance and information and a large number of legal languages that can be reused. You have prepared your film business plan, you have sent it to film investors and you think you are in the process of obtaining your film financing.

The next likely step is that the investor will apply for a film investor contract before cutting the elusive „independent film financing cheque.“ So how do you make sure there`s nothing between you and an interested film investor? One possibility is the use of a film-investor agreement. We use a simple revenue recovery model in our current BusinessPlan model. We also offer three other options for waterfall distribution in our film financing guide, as well as this visual graph that shows how a $30 million film incorporates its money into the producer`s net profit pool (thank you Producer`s Guild)! We highlight barrier rates, producer net income, deferred talent agreements, profit sharing and more. One of the stunts is also included in our PPM model, with all the legal Eze you need. You can choose or combine one of our four scenarios on how you want to repay your investors based on your specific project. Low-budget films are often played by passive investors who are not in the film industry or who are familiar with them. Typically, they are successful businessmen with deep pockets willing to risk a few thousand dollars to help an independent filmmaker. These investors know that the chances of winning are slim, but they still want their money to be managed to the best of their ability given the risky nature of the film business. At the same time, it`s your movie and you want to make sure you have control of your project. Don`t forget the months of work you put into the project. Your film should be your movie until you decide to sell it to a distributor.

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