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Chris Cullari is a writer/director based out of Los Angeles. His most recent film, THE AVIARY, is available for streaming on Paramount Plus and Showtime. You can find him tweeting about monsters, pro-wrestling, and horror movies.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Not every project benefits from bringing multiple production companies or producers on board, but there are a couple of key cases in which teaming up can make a lot of sense. Let’s take a look at a few examples:
Unless you’re one of the rare filmmakers who can afford to self-fund and produce your projects, partnering with others in the indie film industry can be a game-changer for your production.
Two or more indie filmmakers might join forces on the same project, or a solo filmmaker might want to make a deal with a production company or investor. In either case, the extra money, support, and ideas that flow from this kind of joint venture can lead to a more polished and expansive final product than a solo production.
A successful example of this kind of joint venture would be the V/H/S horror anthology franchise. Each of the films in that series benefits from the collaboration of a variety of indie horror filmmakers and producers.
In a co-production, two or more production companies collaborate on a project in order to share costs, resources, or creative responsibilities.
This type of joint venture allows production companies to tap into each other's strengths whether that’s technical expertise, talent access, or distribution networks. The result is a film that benefits from the best of both production companies.
For instance, John Wick producers 87NORTH will often co-produce a film with a studio or filmmaker seeking to access the talents of their experienced stunt team.
When production companies from different countries collaborate, the result is an international co-production.
This type of joint venture is usually created as a way for a production company to access new markets, tap into local talent pools, or secure financing that might not be available domestically. International co-productions can also open doors to global distribution, increasing a film's reach and potential profitability.
A great example of an international co-production would be the Lord of the Rings franchise and its deep ties to both Hollywood and New Zealand’s production infrastructure.
Finally, there’s financier-producer partnerships. These arrangements are fairly common in the film industry and usually involve a financier teaming up with a producer or production company to foot the bill for a film in exchange for a share of the profits.
This type of joint venture gives producers access to the kind of cash necessary to bring their project to life while financiers gain the opportunity to invest in a potentially lucrative endeavor.
The arrangement can be between a financing entity like Hollywood’s MRC (Media Rights Capital) or individuals and the filmmaker, such as Sam Raimi and the rich dentists that funded the first The Evil Dead.
There are benefits and challenges involved in all filmmaking decisions and joint ventures are no exception. Let’s take a glance at some of the benefits you’ll be able to enjoy should you choose to move forward with a joint venture.
Instead of relying on the creative and practical resources of one production entity, you’ll now be able to take advantage of the joint venture’s combined resources.
These extra resources can include financial benefits as well.
Your joint venture could provide an additional financial entity to rely on for essential cash flow, or it could attract investors more confident in investing their money in a collaborative project.
If you’re collaborating with partners from different parts of the country or the world, you have increased abilities to tap into new distribution markets and reach wider audiences.
Joint ventures allow partners to share the financial and creative risks associated with filmmaking. This can be essential on ambitious projects that are too big for one filmmaker or producer to tackle alone.
While the benefits of a joint venture are significant, the challenges involved can also impact a project’s success. These are not insurmountable, but it’s wise to enter into such an important agreement fully aware of what some of the drawbacks might be. These can include:
It’s possible that different team members might have different creative ideas or goals. These can be especially sticky in a joint venture where financial incentives or shared resources are involved.
It’s important to have a system in place to help solve these creative differences so they don’t negatively impact the film's final product.
Effective communication is critical on any film or television, but even more so in a joint venture. Misunderstandings or a lack of communication can lead to delays, increased costs, and strained relationships between partners, none of which bode well for the project’s final form.
If you aren’t careful, disputes over the budget and profit-sharing can cause friction between partners, potentially jeopardizing the entire project.
Congratulations! You’ve considered your options and decided a joint venture makes sense for your production. To help avoid any complications, here are some of the elements you may want to include in the agreement.
A comprehensive joint venture agreement will clearly identify all parties involved. This includes all filmmakers, producers, and financing entities legally sharing a stake and/or responsibilities in the production of the project.
The agreement should outline the roles and responsibilities of each party involved in production. Make sure to include what each person or entity will be responsible for contributing, including funds, equipment, personnel, and creative ideas. Being clear about this on paper can help avoid conflicts in the future.
Filmmaking is collaborative, but in order to avoid your shoot descending into conflict and chaos, you need to be clear who has creative decision making power. This section of the joint venture agreement should set out how the partnership will be managed and who gets to make final creative decisions.
Equally as important as creative control, this section should detail how the budget will be managed, who will control the finances, and how funds will be allocated. Internal controls should be developed to prevent fraud or misuse of funds.
Generally, all stakeholders should have access to the financial records for the project, including balance sheets, income statements, and cash flow statements.
The joint venture agreement should be clear about how ownership of the film and other assets will be divided, as well as how each party's contributions will be recognized. This could be through profit sharing, credit, or a flat fee.
The parties should also make sure to define the ownership and use of intellectual property related to the film, including copyrights, trademarks, and any other intellectual property rights.
Detail all parties’ responsibility to maintain the secrecy of any confidential information disclosed during the course of the joint venture.
All entities involved in the joint venture must come to an agreement on how profits and revenues from the finished product will be shared. Most films ultimately generate multiple profit streams—think box office, DVD sales, and streaming services—and it’s important that all partners know who gets how much of each sale.
While it can be tough to know marketing plans from the start of a project, it’s essential to lay down some basic guidelines. Consider how the film will be marketed and distributed, as well as which party will be responsible for these tasks.
Finally—but importantly!---your joint venture should outline how all parties involved can resolve disagreements that might occur during the production process. Options could range anywhere from mediation to arbitration to lawsuits or settlements.
Forming a joint venture is one of the best ways for ambitious filmmakers to bring their vision to life, but it's important to make sure the agreement covers all your bases and protects all parties involved.
To ensure your next collaborative project starts off on the right foot, don't forget to download our free Joint Venture Agreement template right here!
And for more information on other important production paperwork, take a look at our essential guide to director’s agreements or our guide to Los Angeles film permits, complete with a free eBook!
In the world of independent filmmaking, collaboration is the key to success. Directors work with department heads, cinematographers rely on their crew, and actors turn to scene partners to help create memorable moments.
Producers collaborate, too. If you’re putting together a film or TV project and looking to pool resources, expand your reach, or share the financial risk, entering into a joint venture with another production entity can offer a strategic advantage.
But with the promise of shared success also comes the need for clear agreements and mutual understanding. That's where a well-drafted Joint Venture Agreement comes in.
Before we get into the nitty gritty, download our free Joint Venture Agreement template to ensure you're well prepared for your next collaborative project.
Our free template includes everything you need to make sure your next joint venture is properly papered and legally binding.
Should you find yourself in a situation that requires additions or addendums, you may want to contact an entertainment attorney to help draft language specific to your production.
