Film Production Company Partnership Agreement

Options are often used in Hollywood and it`s much cheaper to choose a scenario than to buy it from the beginning. An option agreement is especially useful when a producer does not know if their financing will come out of it. This is basically a way to secure your bets if the funding doesn`t go as planned. In such a case, if you buy the rights to the property directly, you might be forced to buy a script that cannot be turned into a profitable film. On the other hand, with an option agreement, even if you do not guarantee the financing, you can simply let the option run out and “reduce your losses” the production refers to the period of “the magic passes” and the main photography begins and the film is made physical. .