That was hypothetical, I was really just pointing out that the use of the term "expected" for any legal agreement or contract seemed unusual and as it turns out, you really need to check a bit deeper as the full text at
Amateur is:
Quote:
Amateur royalty calculation formula for all shows: multiply your average expected audience per performance X average ticket price X number of performances x 10% and then round up to the nearest $10.
Please be conservative in your estimate about your average expected audience: this royalty is non-refundable, and you will have to report your gross income at the end of your run (and pay any overage, if due).
Free admissions should be calculated at $2.50 per person (ie, $0.25 royalty for each person expected to attend).
Example:75 (average expected audience per performance) x $11.00 (average ticket price) x 7 (performances) x 10% = $577.50, rounded up to nearest $10 = $580.
One-act plays: simply do the calculation above, but divide the result by the total number of one-acts being performed, and round up to the nearest $10.
The minimum per performance royalty for all plays is $10 per performance.
The license is not valid until we have checked for any conflicts with professional productions. In most cases the license is mailed by B P P I immediately. The license becomes valid when producer's check has cleared.
The license agreement requires a statement of your gross box office receipts at the end of the run. If your statement indicates greater gross box office receipts than calculated in the license agreement, then 10% of that overage is due.
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So you apparently initially pay based on the expected audience but you also apparently do have to submit a statement at the end of the run and pay additional if the actual gross is greater than expected. However it seems that there will be no refund if the actual gross is less than expected, so I believe they are saying be conservative to avoid paying too much but also be ready to pay later.
Thus in my example, you would apparently pay $20 upfront but then owe $1,980 after the run based on the actual gross.