Most Favored Nations (MFN) in Acting Contracts

In an acting deal, most favored nations (MFN, or "favored nations") means you get terms at least as good as everyone else in a named group, usually the rest of the cast. SAG-AFTRA calls it equal contractual treatment and says it isn't a union requirement: it has to be negotiated. Here is how MFN works, when productions use it, and what to check before you agree, with what our experts told us.

What does MFN mean in an acting contract?

It's a promise of equal treatment. SAG-AFTRA's definition of favored nations calls it "an industry term which means that you are getting equal contractual treatment to others on the project". If the deal says you're MFN with the rest of the cast, nobody in that group gets better terms than you on the points the clause covers.

The idea is borrowed from trade and contract law. Cornell Law School's legal dictionary describes a most favored nation status as a promise to treat one party as well as the best-treated party, and notes that the same kind of clause appears in ordinary commercial contracts.

One thing to know up front: SAG-AFTRA says favored nations "is not required by SAG-AFTRA and must be separately negotiated between Performer and Producer". It isn't a union rule.

Favored nations, most favored nations or MFN?

In casting and deal-making the three phrases are used for the same idea, and actors and reps often shorten it to "MFN" or say a role is "favored nations". What matters isn't the label but the wording of your clause: who you're being compared with, and which terms are being matched.

Producer Shaked Berenson uses the phrase in our library when he describes indie films that "divide what's called favored nation", giving everyone a similar share of points and salary.

How does an MFN clause work?

In plain terms: if anyone in the comparison group gets a better deal on a covered term, yours is raised to match. A clause usually names three things:

• The group. All cast, all series regulars, all guest stars this season, or all actors at your billing level.
• The terms. Pay only, or also billing, backend, perks such as trailers and travel, or approvals.
• The direction. Whether you're matched upwards only, or simply guaranteed nobody in the group is ahead of you.

Read narrowly, an MFN on pay says nothing about billing, and an MFN on billing says nothing about pay. That's why reps ask exactly what the clause covers.

When is MFN used?

Mostly where a production wants everyone on equal footing:

• Ensemble casts, where several actors share the lead and the producers would rather not negotiate a pecking order.
• Independent films on tight budgets, where everyone takes the same reduced fee or the same slice of points, as Shaked describes.
• Episodic guest roles, where a show may pay every guest at the same level for the same kind of role.

It also appears with name actors who've agreed to work below their usual quote. Shaked says a star making a passion project might take a much smaller salary in return for a bigger backend or a producer credit.

MFN on billing and perks

Pay isn't the only thing an MFN can cover. Shaked lists credit as one of the four ways actors are compensated on a feature, alongside salary, backend and residuals: first billing, or appearing on posters and trailers, has real value.

So a clause might promise favored nations on billing (your name in the same size and position as the others), on perks (the same trailer, travel class or per diem), or on everything. If the clause only mentions money, assume it only covers money.

The pros for actors

• Protection. You won't discover later that someone doing the same job was paid more.
• Automatic upgrades. If the producers improve a co-star's deal, yours rises with it on the covered terms.
• Less awkwardness. On an ensemble, it takes the comparisons out of the room.

The cons

• It can act as a ceiling. If a producer can't pay you more without paying everyone more, there's little room to negotiate up.
• It ties you to the weakest deal in the group if the whole group has agreed to a low fee.
• It's only as good as its wording. A vague clause can leave out the very term you cared about.

An MFN offer isn't automatically a lowball. On a small film it's often how the budget works for everyone. But it's worth asking who else is in the group and what they're getting.

Does MFN replace union scale?

No. On a union job the SAG-AFTRA minimum still applies, and an MFN clause sits on top of it. Everyone in the group could be at scale and favored nations at the same time.

Kym's explanation of co-star and guest star contracts shows why the role category matters too: those are contract terms with different pay structures, so check that "equal treatment" compares like with like. Our co-star vs guest star page explains the difference.

How should you handle an MFN offer?

Let your team do it, and read before you sign. Ben Whitehair, a former SAG-AFTRA vice president, says deal terms should be negotiated before you arrive on set, by your agent or entertainment attorney. If the contract on set doesn't match what was agreed, call your agent before you sign.

That applies to small jobs too. Manager Chris Roe says even a low budget job you booked yourself should go through your reps, because a deal described as straightforward isn't always. And if your role grows during production, Pete Malicki suggests raising the credit question then, rather than after everything is signed.

This page is general information, not legal advice. Have your agent or an entertainment lawyer read any MFN clause before you agree to it.

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