Screenwriting : Options Agreements - Your Experiences Needed! by Jodie Hewson

I'll chime in (and take it for what it's worth).

You should ask for what 'YOU' think is 'FAIR'. Nobody can determine that but you. Same with any other business. If you are a painter do you charge $500 for an original painting or $10,000. If you charge the later, is it likely the client has enough to pay that amount?

Is the company a big one? Or a small independent outfit? If I was in your shoes, and it was a big, legitimate company with big credits, I'd ask what they are offering and start negotiating. A small company trying to make something happen, maybe 2-5k for your option with a 1 year term and in the event the film is financed ask for another 2-5k + 1-2% on the back end.

On another note, I once had a fairly well-known actor wanting to buy a screenplay for nearly 6 figures. At the last minute, the deal fell through...but it really put in perspective the value of a project. Don't be quick to give your work away for nothing, but don't be too greedy if whom working with may not have that type money avail.

Best wishes to you and feel free to message me if I can help in any other way!

cant help you but congrats!

Get as much as you can upfront that way if the movie doesn't get made and the option expires at least you got something. Option money is yours to keep.

Congratulations on the offer to option your script, Jodie Hewson!

This is amazing, congratulations Jodie Hewson !

Congratulations on the option. Keep us posted, please.

First, congrats! Now, get an attorney. A true option agreement spells out a lot of deal points that will evolve with the project if the option is exercised, you can't pull these off of a template online.

As for price, that is negotiable -- usually a small option fee and then a true larger amount once the option is exercised, and a reversion clause if it has not been exercised within a set amount of time.

Is this a screenplay or are you talking about film rights for a novel?

Great advice, Laurie Ashbourne . Consult an attorney to maximize your benefits. You better believe "they" have attorneys to benefit them.

You might consider trying to get a WGA Agent to rep you to handle the negotiations.

Laurie Ashbourne yes!! I do have a lawyer and he’s excellent. I’m just curious about whar other people have got or regretted not doing to ensure nothings left on the table. I’ve definitely had bad agreements even with a lawyer so trying to get the most from others’ experiences!

I had optioned a project called an if-com deal. It was for 6 months and the original talent dropped and the 6 months expired. Money never exchanged hands. It was a good experience. I think it depends on the deal. I now have a project with an indie producer, and I am expecting only credit because I really want this story made. So far, we have not discussed any terms but I know this producer is one of the best for this story. This is my experience.

Jodie Hewson That's great. Just make sure to look for things like sequels and spin off rights, screen credit, reversion to you if the option isn't exercised and any perks that are important to you, ie: premiere, set visits, even first rights to rewrite. Some of these things may be out of the control of whomever optioned it depending on where it is sold, but if you have clauses that are worded that best efforts will be made... it's more likely to happen. Just make sure you are comfortable with the money. I've seen the first step range quite a lot; from $500 to over $10,000.

Good points from Laurie.

Laurie Ashbourne thats so helpful! Thank you so much. We did cover most of those thing but premieres and set visits and fun things like that were missed. Also thank you for that range. This fee was a A LOT Lower than that, which I think is a big issue and maybe an indicator of their dedication to the project! Thank you thank you!!

Very good insight once again Laurie Ashbourne.

Jodie Hewson I would like to add the time they are holding the option is important. How long are you willing to allow them to hold your script? What other opportunities are you missing while the script is being held? Sometimes options contain an option to outright buy the script at the end of the option period. Do you know what kind of budget they are looking at. This may better inform you regarding a fair number of the initial agreement. Oh and make sure there is something in there for additional compensation they want to re-up the option. Things happen.

Martin Reese oh thank you! That’s a very good point I didn’t consider to ask about - re budget and re-upping the option.

Question for you - I’m in Canada and everyone seems to say that 12 months is “not long at all”. But I’ve talked to a number of people who say options can last a week or even a month. Any thoughts on this? My options offer was originally for 24 months but it went down to 12 months and they keep talking about how it’s not long at all

I would say Jodie Hewson that one year is not long at all. I have never heard of an option lasting a week or a month for a script.

Great news! I would be investing in an entertainment lawyer to review the option contract before you do anything. They will go over all the questions you've posed. Good luck!

Jodie Hewson hi Jodie, well done on being optioned.

The fee may be dependent on the production budget, or the financial position of the production company and their ability to pay you something upfront, before they’ve raised the budget.

Duration. Always have a time-limited agreement. It’s usually 12 months with an extension facility of say 6 months.

Don’t fall foul of the agreement. You are not allowed to show the script to any other company or individuals, even if someone offers you a ‘better’ deal.

My option agreement also includes my screen credit as the writer and states that I must also be contracted as the film’s director.

Get a solicitor/attorney to check the details of the option, before you sign.

Here’s wishing you all the best, Geoff

Unless it is a lower budget film screenplay the price of a screenplay is based on the below the line budget. They should offer you a percentage of what that comes out to. If it is your first deal and you don’t have representation they will probably try to pay less money upfront. You can always counter but if they have other screenplays they are interested that may backfire.

It's not unusual for well established producers to option a script for a dollar and only shop it around for six months, so don't get too hung up on that part of the deal. Rich people are smart and tend not to pay more for things than they have to.

When it comes to profit participation, "parri pasu" are the magic words. Ideally, you want your points to be on an equal footing with a producer, and thus you are on the same step of the "waterfall" as them - and no, it's not as simple as net vs gross profit, like many people say.

Wow! Big Congrats! Best of luck!

CJ Walley tell me more about achieving this parri pasu situation! My lawyer essentially said “you’re last on the list to get the profits” and it’s a percentage of their profits after any investors take their cuts. Is equal footing a real thing someone can negotiate?

Jodie Hewson I am not sure what your attorney is talking about. Most screenwriters prefer a higher upfront payment rather than relying on profit participation. This ensures they receive compensation regardless of the movie's financial performance.

In many cases a screenwriters receive payment when their screenplay is optioned to a producer who wants an exclusive right to purchase the script later on or sold outright. The final payment for the script usually occurs before or on the first day of filming. However, specific terms can vary depending on negotiations.

Screenwriters should be cautious when negotiating for net profits because the net profits can be affected by various expenses, and it's not uncommon for films to show little or no net profit. Gross points is always a better way to go.

Dan Guardino is spot on. And I'd be cautious about paying an attorney this early in the game when it's soft negotiations. That will add up fast. Once a contract is in your hands, with the terms you asked for, then pay someone.

Jodie Hewson, equal footing with a producer, yes, but not an investor. The investor is usually first inline on the waterfall with their money returned from dollar one, plus a premium, plus a share (usually at least 50%) of the participation pool. This means, getting 50% of the producer's points often actually translates to getting 25% of the overall points, because the producer's pool is halved right from the start.

I have this deal on a couple of films, and when you have a film do well you're sure glad you have it.

It's something you can only really negotiate on lower budget films when there isn't enough funding to pay much of an upfront fee. You're effectively coming onboard as an investor at that point. I don't know your situation. Perhaps that's something that would work for you.

All of the comments are so helpful! I scrolled by and received a lot of information. Also, congratulations, Jodie!