Franchised Agency FAQ Dashboard Dashboard

Franchised agencies cannot negotiate for packaging fees on new WGA-covered projects effective July 1, 2022, when the “Sunset Period” in the franchise agreements expired.

Therefore, for projects that were not packaged before July 1, 2022, the agency must operate on a commission basis. The agency’s commission is calculated as a percentage of writer compensation. Rider W of the franchise agreements caps the agency’s commission at 10%.

No. The franchise agreement prohibits the packaging fee model—under which agents are paid directly by studios in the form of packaging fees—for all elements on all WGA-covered projects, not just the packaging of writers.

Yes. Agencies can continue to service clients by working to attach elements to projects and connecting writers with producers, directors, actors, etc. Connecting talent is a fundamental part of an agent’s job. The agency’s compensation on the project, however, will be a percentage commission on the deal(s) it negotiates for its own clients.

Packaging fee agreements entered into on projects before the sunset period expired remain in place.

Projects packaged under an overall deal prior to July 1, 2022 will remain packaged. Projects created under an overall deal after June 30, 2022 cannot be packaged.

If an agency negotiates for packaging fees on a new project after June 30, 2022, it is in violation of its franchise agreement and the Guild will take appropriate legal action, including filing an arbitration claim against the agency. Remedies available to the Guild include disgorgement of packaging fees and the suspension or revocation of the agency’s franchise.

Contact the Agency Department if you have concerns an agency is trying to package after the Sunset Period.

Please contact the Agency Department.

Franchised agencies provide the Guild the following writer information:

• Invoices;
• Deal memos and contracts; and
• Statements of compensation and agent commissions.

Yes. The Guild will protect agency-provided writer information just as it does the writer information it receives from studios and writers themselves.

Information sharing is essential to advancing the interests of writers, both as individuals and collectively.

• Agency information sharing enables the Guild to address the systemic abuses of late pay and free work. The Guild uses the information provided by franchised agencies to systematically follow up on payment and collect interest for writers who were paid late or who have not been paid at all. 
• It enables the Guild to better represent all writers collectively and individually. Agency-provided information allows the Guild, in an unprecedented way, to identify and assess industry trends in writer employment, which aids the Guild in enforcing the MBA and providing writers and their representatives with important overscale compensation information
  
  Information on deal trends can be found in the Writers’ Deal Hub, a centralized resource dedicated to helping writers negotiate their individual overscale deals. The Agency Department can also provide customized research on comparable deals to assist members and their representatives in individual deal negotiations.

The franchise agreements prohibit the agencies from encouraging or coercing opt-outs from information sharing. Please contact the Agency Department if you have been pressured to opt-out.

Yes. WGA Working Rule 3 requires all members to send their contracts to the Guild, and we will look to you, instead of your agent, to provide your contracts. And, you can always opt back in.

You can submit your contract online.

Yes. We encourage you to contact the Agency Department.

The agency can perform financing, sales, and distribution services in connection with independent films.

If the writer is interested in retaining the agency to perform financing, sales, or distribution services on an independent film, the agency must first fully disclose their fees in writing to the writer. The writer then has the right to decide whether to retain the agency for such services.

The agency must still fully disclose the relevant fees in writing to the writer before the writer enters into any contractual commitment for the project in question.

No. The franchise agreements prohibit any offer of employment or purchase being made contingent on an agreement to retain the agency for financing, distribution, or sales services.

Yes. The agency must report on a yearly basis the films on which it has performed financing, distribution, or sales services and the names of the writers employed on those films. The Guild will then be able to check in with the writers to ensure the agency complied with their obligations under the franchise agreements.

No. The franchise agreements contain a standard representation agreement (commonly known as “Rider W”), which contains basic protections for writers. Rider W applies to any writer-agent representation agreement, whether that agreement is written or oral.

The franchise agreements permit writers and agents to negotiate for additional terms that do not conflict with Rider W.

We encourage you to contact the Agency Department. In addition, you may want to consult with your entertainment attorney.

Please contact the Agency Department.