There are some talent agencies that are no longer franchised by Screen Actors Guild. This means that those agents have no legal obligation to abide by the requirements of Rule 16(g), the SAG Agency Franchise Agreement, and that SAG cannot enforce the Agency Franchise Agreement against those agents. The Guild’s leadership will immediately engage in an active campaign to persuade agents to re-sign the Agency Franchise Agreement.
Although members are permitted during this interim period to be represented by an ATA/NATR Talent Agent, members are advised not to sign individual representation agreements if the terms provide less protection than Rule 16(g), the SAG Agency Franchise Agreement. Examples of agreements which provide less protection are those with: a term longer than 3 years, a commission rate of greater than 10% and payment of commission on compensation including penalties, residuals, per diem, etc.
ATA agents have no legal obligation to abide by the requirements of Rule 16(g), the SAG Agency Franchise Agreement, and many of them have chosen not to do so. SAG cannot enforce its agency rules against these agencies. Although members are permitted during this interim period to be represented by these formerly franchised agents, members are advised not to sign any individual representation agreements presented to them (e.g., “general service agreements,” or “GSAs” or “Stare approved agency contracts”) with these entities without first consulting with their Guild, especially if the terms contained therein provide less protection than the SAG Agency Franchise Agreement.
Most GSAs contain provisions which offer SAG members drastically fewer protections than those in the Agency franchise, including, but not limited to, the ability for the agent to commission previously non-commissionable residuals as well as other sources of revenue, and significant alterations in the performer’s ability to terminate his/her agency contract. Members will also note that SAG will not be able to offer its arbitration/mediation services to settle commission or other disputes with these agents since they are no longer under SAG jurisdiction.
What to do if an Actor is handed a General Services Agreements (GSA) to sign:
● Attempt to negotiate terms and conditions that are similar to, or better than, those in the standard SAG Agency Agreement.
● Seek independent legal advice prior to signing any contract that is NOT a SAG Contract.
● Immediately notify SAG’s Agency Department (in LA: 323-549-6745; in New York, 212-827-1444) and provide the Guild with a copy of the GSA so that the union may assist you in reviewing it.