A Minimum Guarantee (MG) is a non-refundable upfront advance paid by a distributor to the film's licensor or producer to secure territorial rights. While the producer keeps this fee regardless of box office performance, the distributor negotiates a first-priority recoupment right. In the collection waterfall, every dollar of distributor net revenue (after theater/store splits and distribution fees) flows directly toward reimbursing the distributor for both their P&A marketing expenses and their original MG check. Only after both are fully repaid does the producer begin receiving "overages" (backend royalty shares).

Movie theaters generally retain 50% to 60% of the box office gross (referred to as the exhibitor split or house nut). For digital transactions on platforms like Apple TV or Amazon, the storefront keeps roughly 30%. The distributor then takes their contractual distribution fee (usually 20% to 35% for theatrical, and 15% to 25% for streaming/home video) off the remaining net receipts before applying any funds toward recouping marketing costs or paying out the producer.

An international sales agency acts as the producer's global broker, premiering the film at festivals (Cannes, Berlin, Sundance, Venice, Toronto) and licensing individual territories. The sales agency typically earns a 10% to 15% commission on all advances and future royalties, plus recovery of their authorized market and legal expenses, deducted directly from producer remittances.