Sure. It can mean that. But sometimes option agreements are signed so that a producer or production company can only present your work to one or two target parties. And if these target parts exist, your script remains in a workbook until your option expires (and this can range from one year to five years or more). In any case, you want the producer to set the conditions for exercising the option, including the purchase price, your author`s credit, the notification process and the exact rights he acquires (only film rights or also sequels, television and other auxiliary units). However, the compensation details are perhaps the most important and should be about bonuses, backend participation, and fees for sequels, spin-offs, and remakes, if any. If the final purchase price cannot yet be determined because the budget is still undecided, ask for a percentage of the budget with a lower limit (i.e. 2% of the budget with a minimum of $20,000). A big problem that many newcomers have after signing an option agreement is not recognizing that they sometimes guarantee the producer or production company a lot of free excess labor. You need to carefully review your option agreement, understand what rights you are granting and how the agreement will work.
Consult a close friend who understands such questions, or you can always use the punctual services of a lawyer. So if tomorrow the phone rings and someone wants to choose your script, it`s normal to be excited because now you know what to do. Just download the screenwriter contract template as an example of what to expect. It is not a breaking factor. In fact, it is very common. But there are many ways to check this language carefully to get a complete idea of what you are handing over and what you will get after the option period expires. The amount of option payments depends on the negotiation process and other factors such as the author`s background in the industry and the potential budget of the film or television project. Some industry insiders have stated that as a general rule, option payments are often equal to 10% of the purchase price, but these amounts are still negotiable and writers should be careful not to get caught up in the hustle and bustle of the excitement that surrounds interest in their script. .