Wga Franchise Agreement
“Over the past few months, according to the Guild, the WGA, the CAA and its private equity owner TPG have negotiated the steps the agency must take to obtain the franchise agreement (i.e. the sale of Wiip) and the safeguards to address the unique conflicts of interest that constitute TPG`s ownership of CAA. There are three layers of additional protection for writers that were negotiated in the letter (read the full here). By signing this agreement, we hope to immediately begin a new relationship with the guild and its leadership. We want to represent again the authors who choose to be our customers. However, CAA also sent a statement to the press and contacted former customers who said they had signed the franchise agreement. That is not correct. CAA has proposed amendments to the agreement that the WGA has not accepted – and cannot approve. The agreement also depends on whether the remedies should be settled. This morning, CAA sent a letter to the WGA law firm with a new WGA franchise contract proposal. Although we have had some cordial discussions over the past few months, this is the first time CAA has sent a written proposal. CAA has approved many of the current contractual terms (MIC), including sunset time for packaging and information exchange. The Guild has characterized these ownership structures as a conflict of interest for agencies and has worked for the past year and a half to register more than 100 small and medium-sized businesses on franchise agreements.
New rules in the 2019 agreement have notably prohibited agencies from accepting packaging fees for projects by their customers. The WGA told the authors to lay off their agents from agencies that refused to sign an agreement. “The WGA will evaluate CAA`s offer, but not through the press,” the email said. “CAA is not allowed. Work rule 23 remains in effect for CAA until the WGA formally informs members. We will keep you informed of new developments. The full email can be read below. That means the WGA is on the verge of winning a battle that began in April 2019, when WGA West President David Goodman told guild members to fire their agents if they did not sign a code of conduct banning packaging and other practices. It remains to be seen whether the WME will reach a similar agreement. WGA executives announced in September that they would not offer CAA or WME better terms than those agreed with other agencies. Rider W contains standard contractual clauses that are contained in all written or oral replacement contracts between WGA authors and signatory agencies. The WGA confirmed Wednesday that it has reached an agreement with CAA for a new franchise agreement that will allow guild members to return to the agency.