Film Accounting Glossary
Signatory
What is a signatory?
Also called union signatory, or signatory company.
A signatory is a production entity that has signed a union or guild agreement and is therefore bound by its wage scales, fringe contributions, working conditions, and residuals obligations.
Productions often form a single-purpose signatory entity so the obligations attach to that entity rather than to the parent company. Which agreement and tier an entity signs determines the entire labor and fringe cost structure of the budget.
Example
The production forms a single-purpose entity to sign the union agreement, so the wage scales, fringe contributions, and residuals obligations attach to that entity rather than the parent company. Which agreement and tier it signs sets the entire labor cost structure.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Decided before budgeting, because the choice of agreement determines the rates every labor line is built from.
Common mistake
Budgeting before deciding which agreement to sign. The agreement and tier set every wage scale and fringe rate, so the choice precedes the budget.
Related questions
- What does it mean to be a union signatory?
- The entity has signed a union or guild agreement and is bound by its wage scales, fringe contributions, working conditions, and residuals obligations.
- Why do productions use a separate signatory entity?
- So the obligations attach to a single-purpose entity for that picture rather than to the parent company and its other projects.