| Commentary

368 Exhibition agreements: House nut 90/10 with a floor

| Commentary

368 Exhibition agreements: House nut 90/10 with a floor

On a straightforward house nut 90/10 deal it is possible in theory for the distributor to receive nothing if the exhibitor does not recover the house nut (see Example 2). For this reason, it is common to specify that if the house nut is not recovered the receipts will be split in an agreed percentage. This gives the exhibitor an incentive to make sure that the film will generate enough response locally to be a financial success. The floor level is generally between 60% and 75% of gross box office receipts.

On

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