How to Read (and Negotiate) a Deal Memo

How to Read (and Negotiate) a Deal Memo

How to Read (and Negotiate) a Deal Memo


Picture this.

You finally get the call for the gig. You’re excited, flattered, maybe already Googling how to make your own cold brew for those early call times.

And then—bam—a deal memo shows up in your inbox. It’s got three pages of terms, deadlines, rates, clauses you don’t fully understand, and one very aggressive sentence about “assignability in perpetuity.”

You squint. You skim. You stall.

Eventually, you either (a) sign it and hope for the best, (b) forward it to your actor friend who once dated a paralegal or (c) panic, overcompensate and respond with a 12-point bullet list of demands that makes you sound like you think you’re starring in Oppenheimer.

Welcome to the wonderful world of indie contracts.

The Indie Hustle Comes With Paperwork

 
Here’s what I’ve learned after putting literally thousands of people on contract over the past 30 years: most folks are amazing at what they do—but completely lost when it comes to the business side of their job.

Totally fair. Most of us weren’t taught this stuff. There’s no “Intro to Deal Memos” class at theater camp. And let’s be real: a lot of indie projects are so scrappy that by the time you get the deal memo, you’ve already earmarked the money for ramen and rent.

But if you don’t read—and understand—the deal memo, you could end up working for less money than you thought, giving away rights you didn’t mean to or getting stuck in a mess you can’t cleanly walk away from.

Contracts Don’t Have to Be Confusing (Or Evil)


Most deal memos boil down to seven essential ingredients. If you know what to look for, they’re surprisingly straightforward:

  1. WHO – Real names. Real contact info. Not just “Gaffer Steve.” And not just your info, but also the producer’s. Who are you going to contact if you have an issue or you don’t get a W-2 in six months?

     

  2. WHAT – The project. The role. The responsibilities. No mystery, no maybes. This is possibly the single most important part of the contract. What specific services are you expected to provide?

    Often, you’ll find a vague description (I’ll confess I have been guilty of this). For example, a production assistant’s role might be described as “Assisting with setup, running errands and other duties to be reasonably assigned.” Or it says “duties to be within industry norms.”

    Vague descriptions can lead to disputes later on, so it’s wise to ask questions. Are you expected to use your own car to run those errands? Who’s paying for gas? How many people and/or who will be assigning you your daily tasks? If the answers don’t land in the deal memo, then politely summarize that conversation in an email afterwards so that you have something in writing.

     

  3. WHEN – Timeline, schedule and what happens if things go sideways (because they so often do). Include specific dates and times, and clauses about what happens if there are delays due to weather, equipment failure, pandemic, strikes, etc.. Who is responsible, and what are the repercussions? Also, be sure you know how many hours per day they plan to work and what the days off are.

    One important tip–be up front about any conflicts. If you know you’ll have to be out for your brother’s bar mitzvah or a family reunion or the pulling of your wisdom teeth, then say so. It’s rarely a deal breaker. Most producers understand that crew members are human. If they know in advance that you’re going to be out, then they can plan ahead and avoid the panic that can occur when someone calls out “sick.” If you’re able to replace yourself for that day or two, then offer to do that so the producer or department head doesn’t have to.

     

  4. CONSIDERATION – Payment. Per diem. Kit fee. The “why this gig is worth it” part. This section should detail exact amounts, payment schedule and method of payment. It’s also crucial to discuss potential bonuses, overtime pay or reimbursements.

     

  5. CONTROL – What is the project’s hierarchy? Who reports to whom? How are you going to resolve a dispute? What happens if one party leaves the project?

    Part of contractual control is having an “out” clause you can live with. I learned this lesson the hard way. I was the company manager of a Broadway show and was tasked with furnishing eight apartments for actors from abroad. The show flopped and the actors were on a plane home within six weeks. That’s when I was slapped by the furniture company’s out clause, which required a minimum rental period of 12 months. I was young and optimistic when I signed it. I never imagined things could go awry. Surely the show would run forever. 

None of us willingly align ourselves with failures. When we embark on a project, we’re presumably doing so because we think it’s a good idea. No need to go down a rabbit hole imagining every horrific reason you might want out of it. You just want to know that you can escape if necessary, and what it might cost you to do so.

  1. LEGALITY – Which laws apply if everything blows up? This determines where legal disputes will be handled. If you’re working on a project in Canada, but the production company is based in New York, the contract should specify which laws will govern the agreement.

     

  2. ACCEPTANCE – You agree, they agree, signatures go on the dotted line, done. Understand the signing procedure and what constitutes a legally binding agreement. Is an electronic signature acceptable? What if changes are made after signing?

Deal Memo Checklist:

  • [ ] Are all parties’ legal names and contact information correct?
  • [ ] Are all roles and responsibilities clearly defined?
  • [ ] Is the timeline detailed, and what happens if there are delays?
  • [ ] Is the payment amount, schedule and method clearly stated?
  • [ ] Who has control, and how can the agreement be terminated?
  • [ ] Which laws govern the agreement?
  • [ ] Is the signing procedure clear and what makes it legally binding?

Once you know how to spot those seven things, reading a deal memo stops feeling like decoding ancient scrolls and starts feeling like something you can actually handle. A solid deal memo doesn’t have to be scary. It’s just clarity on paper. And clarity is power.

You deserve to be protected. Your work deserves structure. And your future self deserves to not be cleaning up legal messes you could’ve avoided with one good read-through and a couple of questions.

At Showbizing Strategies, I help entertainment industry pros advance their careers and their creative projects. No legalese. No lectures. Just wildly practical advice (and the occasional life lesson from the trenches) for people who work behind the scenes. Subscribe here and stay savvy.

Writer's Bio - Julie Crosby


Julie Crosby is an entertainment producer and founding partner at Cromono International and Showbizing Strategies. Her feature film Alien Intervention is streaming now. Connect with her on LinkedIn.

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