What is a minimum guarantee in film distribution?
A minimum guarantee is an agreed minimum payment for distribution rights. The contract specifies what triggers payment and how the distributor can recover it from receipts.
Where does the money go?
Suppose a distributor advances $200,000 for one territory. Under a deal where its advance recoups from the producer’s share, the first $200,000 of that share repays the advance. If the share reaches $250,000, another $50,000 is payable in this simplified example. Actual contracts can deduct fees and expenses before calculating the share.
What should a deal report record?
Name the territory, rights, term and payment conditions. A guarantee for one territory does not tell you the worldwide rights price, the film’s budget or how much audiences spent.
Read the sources
WIPO film finance primer · Publicly filed film financing agreement