FAQ - Contracting
MTI has updated and streamlined our Production Contract to make it even easier to do business with us! Here is a brief summary of the changes:
- Added a Contract Checklist outlining how to complete and return the contract
- Changed Sales Tax line on the Contract Confirmation page to clarify that sales tax now applies to ALL states
- Removed duplicate signature pages
- Removed the requirement to sign and return the Contract Rider regarding changes to the Play and use of replica elements, which is now incorporated by reference in the main contract
- Updated language throughout the contract, particularly in the Performance License sections, for greater clarity
If something happens and your group ends up selling fewer tickets than what you have contracted and paid for, you can apply for a royalty reduction. In order to do so, you would need to submit a notarized box office statement to MTI’s business office within seven days of your production’s closing performance date. The box office statement would simply need to be a written statement that details exactly how many tickets were sold and what the total gross income from the ticket sales was. With this information, we can recalculate the royalties based on how many tickets were actually sold for the production.
The royalties are based on how many tickets your group is making available for sale and what you are charging for tickets. On our applications, we ask for the house size as well as the expected attendance. When we calculate the royalties, we base it on the expected attendance because we do not charge a royalty on a seat that will not be made available. When you receive a contract offer, it will show what seating and ticket prices the quoted royalty rate is based on. The seating limitation that the royalty rate is based on is as an average. So, you may sell more at some performances and less at other performances as long as the average does not exceed the seating limitation. If you begin selling tickets and find that you would be able to sell more seats, you would be contractually obligated to contact us and let us know how many more seats you would like to make available for sale. We can then recalculate what the new royalty rate should be, based on the increased seating, and let you know. Once you have paid the adjusted royalty rate, you would then be able to begin selling the increased number of seats.
Please allow up to 10 business days for us to process your contract once it arrives in our office. It can often take less time, but during our busiest seasons it may take this long for a production to be booked.
Yes - any presentation of a musical from MTI that takes place in front of an assembly of people (no matter how few) is considered royalty-bearing under the law, whether or not admission is charged. These can include "invited" dress rehearsals, or contest excerpts. A valid performance license is required for all of these performances. If a group has any questions regarding whether or not a performance may require a royalty, they should contact their licensing representative at MTI.
Technically, the full and complete payment of the royalty fees, rental fees and security deposit is due at the time that the contract is sent in. However, for full-length shows, we do allow groups to reserve the rights and hold the contract offer open with a signed contract and payment of at least the $400 security deposit. We need the final payment before we can finalize the licensing and ship materials, but we can reserve the rights with the security deposit. We would hate for your group to find that a show you really wanted to do is no longer available. So, please be sure that MTI has received the completed contract and payment of at least the security deposit before the expiration date on the offer so that we can honor the contract for your group. There is not a security deposit that can be paid to hold the rights for a Broadway Junior title. Since the materials for these shows are not rented items, we need to receive the full payment before we can book the production.
The contract offers do have an expiration date on them for a reason. When MTI offers a contract, the offer is valid for six weeks from the date that it is issued. As long as you return the signed contract and payment within the six weeks, we can book the show and secure the rights at the rates offered. If we do not receive the contract and payment back before the expiration date, then the offer automatically becomes null and void and is deleted from our system. Once this has happened, you must reapply for a new license and the new application is subject to current availability and pricing. Restrictions change daily based on which groups have secured the rights within a certain geographical region for certain dates. Because of this we cannot offer an open-ended contract.