Business Plans for Filmmakers

12. Miscellaneous Provisions

155 12. Miscellaneous Provisions In this section, which would typically appear at the end of the main body of the business plan, a filmmaker would include various items of information that might not otherwise be covered in the other sections of the document. Subsections of the “Miscellaneous Provisions” section may include “Reports to Active Investors and Others,” “Pending Legal Proceedings” and “Access to Additional Information.” Reports to active investors and others. In this subsection, the filmmaker will want to explain to his or her prospective investors how the filmmaker plans to keep them informed about the progress of the fund-raising activities and the production and distribution of the film. This may include information about the type of communication to be used (e.g., newsletter, e-mail, and the like) and how often the information will be provided. Of course, in any investor-financed business venture, it is extremely important to keep the investors informed. Pending legal proceedings. In this subsection, the filmmaker will want to make a statement regarding whether he or she is aware of any pending or threatened legal proceedings to which he or she or his or her company is or may be parties to and which may materially affect his or her proposed business activities. This subsection is required for a securities disclosure document, and although not required for a business plan, it is certainly information that prospective investors should know before they decide whether or not to invest. If there is some pending legal proceeding, add a brief summary statement of what is involved and provide the factual information so that prospective investors can find out more if they choose to. Access to additional information. In this subsection, the filmmaker will want to explain to his or her prospective investors that they should carefully read the business plan and its accompanying exhibits. In addition, he or she will want to advise them that they have the opportunity to ask whatever questions they may have. This subsection will also disclose that investors or their representatives can Miscellaneous Provisions 156 review the files and records of the business during reasonable business hours and with notice. Sample “Miscellaneous Provisions” Miscellaneous Provisions Reports to Active Investors and Others The Producer will prepare and distribute to any Investor who may participate in the financing of the development and/or production costs associated with the Picture a quarterly report regarding the status of the project including a breakdown on expenditures. Pending Legal Proceedings The Producers are not aware of any pending or threatened legal proceedings to which they or the Production Company or its owners are, or may be parties to, and which is materially relevant to this Business Plan or their participation herein. Access to Additional Information Any prospective Investor is urged to read this Business Plan and the attached Exhibits carefully and to have the documents reviewed by an investment adviser. To the extent possible, the Producer will answer any questions that a prospective Investor may have and will attempt to provide any additional documentation to verify the statements included herein. The Producer will keep at the principal place of business of the Production Company adequate books of account of the Production Company and for the Picture, and any Investor and his or her authorized representatives will have at all times, during reasonable business hours, free access to and the right to inspect and copy such books of account. ...