The following is a sample outline of a business plan to be used in promoting a feature film production company: Any actor, director, producer or talent also promised a piece of the backend. Film Financing Generally - Advise client when it is appropriate to use one or the other of the three forms of informational documents to be presented to film financing sources: Before acquiring a film, the buyer will insist upon certain assurances that the film will be free and clear of liens and encumbrances and has clean chain of title.
On a typical film production, the backend net profits of the film are split fifty-fifty between the filmmaker and the investor. These include the production team for the project, key sponsors and product placement opportunities, the target demographics, and a forecast of ticket sales. Advise client regarding creating a fictitious name company if needed; o.
Experienced Filmmakers - those with established studio and entertainment connections and direct access to A- or B- list talent. Any actor, director, producer or talent also promised a piece of the backend. For purposes of this article, we define: Thus, the business plan becomes a method for conducting a general solicitation while looking for active investors, and if the active investor campaign does not prove successful, then the use of the business plan can be halted, a three or business plan film financing contracts week interim waiting period can be observed and then the information in the business plan can be converted into a private placement securities offering memorandum for the purpose of seeking investments from a larger group of passive investors.
These investors know the chances of receiving a profit are slim to none, yet they still want assurance their money is being handled the best way possible, given the risky nature of the film business.
The first thing to note is that there is a difference between which documents we think are necessary and those which are required by law. For example, if the company has insufficient funds to start its movie and another film company has insufficient funds to complete an unrelated picture, the filmmaker might wish to merge the two companies in order to receive producer credit and associate director credit on that picture.
What are some of these subtracted expenses? Help prepare financial projections per SEC guidelines: To protect small investors, however, the better choice is to limit the investment to a single film project. The distributor must also be satisfied that it can acquire the picture free and clear of any lawsuits, liens, encumbrances and adverse claims by a third party.
It is important to present the investor a professional Film Investor Agreement outlining the basic terms designed to protect both their money and your film. The basic rules discussed below apply to all business forms, corporations, limited partnerships LPsand limited liability companies LLCs.
The distributor may even require that it be named as an additional insured under this policy. Key sections and sample text are included in our outline. This simple rule — that the filmmaker must fully disclose all the terms of the investment — is often overlooked, but at the filmmaker's peril.
FilmProposals always recommends you seek professional legal counsel when it comes to any and all paperwork discussing the exchange of funds. An example is that you may use a business plan to send out to the world to describe your market, investment opportunity, film genre, production advantages and more, but legally, you will need distinctly different documents before you are able to accept any funds from anyone.
The filmmaker can always try to amend this decision at a later time, but of course, the investors will then have a voice and a vote in such a modification.
The following is a sample outline of a business plan to be used in promoting a feature film production company: Deferred Compensation for some Participants Most independent film companies are unable to pay all their expenses. The company must plan carefully regarding these contingent payment obligations.
At its heart, material means that information which is important to the investor, information a reasonable person would consider important in deciding whether or not to invest. The first thing to note is that there is a difference between which documents we think are necessary and those which are required by law.
Securities disclosure document for passive investor financing.
Initial Consultation - No charge for initial consultation. Most films generate very high initial demand levels, followed by a quick decrease in demand and market saturation.Finance and real estate.
Business Plan. Business Proposal. Business Purchase Agreement. Business Sale Agreement. Buy-Sell Agreement. Certificate of Incorporation for Delaware.
If you provide a service, protect yourself and your business by having clear contracts with your customers. Find a contract specific for your service, or use the. Your film's business plan will help you secure financing, production personnel and actors.
as it will end once the film is completed. Still, the business plan for your movie is. Business Forms & Templates.
Get instant access to hundreds of business forms, templates, and contracts online today. Find documents for almost every kind of business such as purchase orders. You prepared your film business plan, pitched to film investor(s) and think you are just about to receive your film financing.
The next likely step is the investor will request a Film Investor Agreement contract before they cut the elusive “independent film financing” check. indie film business plans By John W. Cones Technically speaking, the business plan is not a financing vehicle or entity but can be used in conjunction with several other investor-financing techniques to raise money for independent feature film projects.
Filmmaking Making a Federal Case out of It - Film Financing usign a Limited Liability Company for Film Company Business Entity is an article for filmmakers by entertainment attorney Jon M. Garon - Gallagher, Callahan and Gartrerll, Concord, NH.Download