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For Investors

The money we are seeking from investors for this film is $1,625,000 USD

Of all the movie genres, Horror Films are the most profitable.

A quick Google search shows us this:

I think I have put to bed the fact that you can make a lot of money in horror films.

In the first link above it compares horror to all other movie genres. According to this first slide, about 60% of all horror movies either break even or makes a profit. What that means is that about 40% lose money!

There are a number of ways to reduce your exposure to this risk;

How the investment works, $1,000,000 example:

How we have worked with investors in the past is as follows. The numbers are fictional and just used to illustrate the concept. Firstly, the investor owns 100% of the preferred shares. We own 100% of the common shares. The investor is basically a silent partner but is paid first from the receipt of any funds received for the film. This includes funds from distribution and from tax credits which the provincial and federal government gives to us simply for making the film here and amount to about 20% of the budget. Franky Films retains total control of the operational side of making the film: location, actors, script etc.
So let us assume that we have a movie where the budget is $1,000,000. There are essentially two ways that we can go. The first is that the film gets sold directly to Sony, Warner Brothers, Paramount, Netflix, or some other entity.
Assuming that we sell the film for $5,000,000, the investor is firstly repaid the original investment of $1,000,000. The remaining $4,000,000 is split evenly $2,000,000.each..
What also may happen is that we work with a distributor because we believe that the money that a buyer would make is better off in our hands. The distributor looks after all the advertising, the hype, the theatrical release, DVD sales, and streaming services. For this they generally take 50% and pay quarterly. This will go on for several years before sales fizzle out.

Let us assume that from the time of the theatrical release until sales fizzle out it takes 3 years of quarterly payments.

Total Sales from quarterly payments  $7,000,000
Cost of Distribution                             $3,500,000
Left for us                                            $3,500,000

Returned to investor                           $1,000,000
Profit to split evenly                            $2,500,000
Investor                                              $1,250,000
Franky Films                                       $1,250,000

Even though we say that sales fizzle out, they continue and smaller amounts come in quarterly so it is still likely that you would receive quarterly payments 10 years down the road.

This is how we normally work. We are always open to other ideas.

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