Shopping Agreement
Non-exclusive agreement to present material to potential buyers.
Definition
A Shopping Agreement allows someone (usually a producer or manager) to present a screenplay, book, or concept to potential buyers without exclusive rights or large upfront payment. Unlike options, shopping agreements are non-exclusive and don't obligate the shopper to purchase.
Shopping agreements typically limit the period and may specify minimum terms the shopper must negotiate. They protect both parties by defining the relationship and compensation structure.
Why It Matters
Shopping agreements let producers test market interest without significant financial risk, while allowing writers to have multiple people shopping their material simultaneously. This increases exposure and chances of sale.
For rights holders, shopping agreements provide access to industry contacts and expertise without giving up exclusive control. They can pursue other opportunities while the shopper works on their behalf.
Examples in Practice
A producer with strong studio relationships might shop a screenplay for 90 days, approaching buyers on the writer's behalf. If a buyer is interested, the producer negotiates a commission (typically 5-10% of the sale price).
Managers often use shopping agreements with new clients, introducing material to their industry contacts before pursuing more formal representation arrangements.