| Commentary

370 Exhibition agreements: Four wall and flat fee deal

| Commentary

370 Exhibition agreements: Four wall and flat fee deal

A distributor is entitled to 100% of gross box office receipts but pays the exhibitor a flat fee for making the four walls of the cinema, the front of the house and box office available to the distributor for the purpose of screening a film.

Under a flat fee arrangement an exhibitor buys the right to exhibit a film for a specified period of time for a flat fee. In such cases 100% of gross box office receipts belongs to the exhibitor who will pay for all advertising. Flat rentals may

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