The 5 Items All Writers Want In A Screenplay Option Agreement

When a screenwriter's work gets the interest of a producer, it's the beginning of a potential journey to the big screen. The screenplay option agreement is the document that can carry this dream forward. While these agreements can vary widely, there are five critical items that all writers should look for to ensure their interests are protected and their work is valued.

1. Fair Option Fee

The option fee is the upfront payment a screenwriter receives when a producer options their screenplay. It's essential that this fee is fair and reflects the value of the screenwriter's work and the potential of the screenplay. While fees can range based on various factors, including the producer's budget and the screenplay's marketability, a fair option fee serves as immediate financial recognition of the screenwriter's efforts and talent. It is hard to guess what the option fee will be, it could be an independent producer making their first low budget film or it could be a Hollywood producer looking to make the next big hit.

2. Reasonable Option Period

The option period is the timeframe during which the producer has the exclusive right to develop the project. Screenwriters should seek a reasonable option period that allows the producer enough time to secure funding, attach talent, and take the necessary steps toward production without  tying up the screenplay for an extended period. Typically, a period of one to two years is considered standard, but depending on the complexity of the project, extra time may be needed. If you have a screenplay with few characters and locations, it may not be as difficult for the producer to put all the pieces together. If you have a huge action film with lots of characters that have a lot of screentime, it may take more time to get all the right people in place.

3. Purchase Price

Beyond the initial option fee, the agreement must clearly outline the terms under which the screenplay will be purchased if the producer decides to move forward. This includes the purchase price, which is a separate and more substantial payment than the option fee. The agreement should detail how this price is calculated, whether as a flat fee, or a percentage of the budget.  As a screenwriter you want this to be clear so that you understand your potential earnings and can negotiate terms that reflect the screenplay's worth.

4. Credit and Creative Control

Screenwriters should ensure that the agreement specifies the credit they will receive should the project reach production. This might include "written by" or "story by" credits, which are critical for a writer's career recognition and future opportunities. While complete creative control is rare once a screenplay is optioned, the agreement can include provisions for the writer's involvement in revisions or the extent of changes allowed to their original work.

5. Reversion of Rights

Perhaps one of the most crucial components of an option agreement is the reversion clause. This clause ensures that if the screenplay is not produced within the option period, the rights to the screenplay revert back to the writer. This allows the screenwriter to retain control over their work and seek new opportunities for their screenplay without being indefinitely bound to a single producer or company.

Navigating a screenplay option agreement can be a complex process, fraught with legalities and negotiations. However, by focusing on these five key items, screenwriters can protect their interests, ensure fair compensation, and maintain a level of control over their creative work. It's not just about getting your screenplay optioned, it's about forging a partnership that respects your contributions and maximizes the potential of your cinematic vision.

Tyler is seasoned film and media professional with over 20 years of diverse experience, specializing in production management and creative direction, with a rich portfolio spanning music videos, films, and documentaries, and a global network from the US to Sweden. Reach him on his website, LinkedIn, and X, and gain access to his free filmmaking templates when you sign up for his newsletter here.