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Another Booking Question 19 Oct 2004 20:35 #9139

  • izod
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When submitting your house costs to the distribution companies for the percentage v.s. 90/10 calculation, can you include a predetermined monthly payback/mortgage for buildout costs?
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Re: Another Booking Question 19 Oct 2004 22:55 #9140

  • RoxyVaudeville
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Of course. You include everything that is part of the overhead of running the theatre including the mortgage or rent. The only thing you don't include is the cost of film and concession supplies.

They have a predetermined scale based on x dollars per seat per screen. As long as your house expense doesn't go over that figure, they will approve it. Let's say that their figure is $15.00 per seat and you have 200 seats. They would accept up to $3,000 for your deductable house expense. If your theatre is a new build or a house that has been closed and you remodel it and reopen it you will probably get the full figure. If you take over a theatre that someone else had been running you will probably inherit whatever existed prior. If it was previously run by a chain, the figure will probably be higher then the real overhead. If it was an independent and the theatre is quite old, it probably will be less then the real figure. You will then have to negotiate to have it raised, which may not be easy. Distributors are very reluctant to raise established theatre house expense figures more then 10% at any given time, and only once per year.
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