Image of paparazzi taking photos of a celebrity.

The Legal Effects of the ‘Bethenny Clause’

How One Contract Revolutionized Reality TV:

When Bethenny Frankel joined the glamorous world of ‘The Real Housewives of New York City’ in 2008, she, ironically, wasn’t even a rich housewife.

Instead, she was a single, hardworking entrepreneur in the food and beverage industry, willingly signing up for an entire season for merely $7,250 total, as she deemed this amount enough at the time.

Fast forward to today. She now holds a fortune of roughly $80 million, largely thanks to the $120 million sale of her company, Skinnygirl Cocktails, in 2011. Not to mention her salary upgraded to $1 million per season.

So, how did she manage to attain such extraordinary financial success?

The Bethenny Clause

Upon receiving her contract for The Real Housewives of New York City, Bethenny astutely eliminated a clause that would have entitled the TV network, Bravo, to a portion of any earnings resulting from her television exposure.

In her words, “I was a nobody… The only thing I did cross out was the thing that said Bravo would take a percentage of anything I made… I understood conceptually that that was wrong, that I was going places and I was going to do something and no one was going to own any part of it.”

Although it is not officially recognized as a legal term, a “Bethenny Clause” represents a provision in contracts that allows networks to receive a share of profits from a reality star’s personal businesses, potentially popularized by the show.

Lessons for Entrepreneurs, Content Creators and You

The “Bethenny Clause” is more than just a contractual term—it serves as a reminder of the importance of understanding and advocating for one’s own interests. Here are some valuable lessons to take note of:

  1. Know Your Worth in Legal Contracts

Bethenny’s journey emphasizes the importance of self assurance. Even when she was not widely recognized, she believed in her potential for success.

  1. Read the Fine Print: Legal Terms Matter

In every contract, the nuances can have a big impact. It is crucial to comprehend the terms and conditions— especially those related to earnings and business rights.

  1. Seek Professional Legal Advice

If you have any uncertainties regarding a contract, it is advisable to seek advice from experts. They can offer unique perspectives and assist in negotiating terms that safeguard your interests.

  1. Trust Your Instincts in Contract Negotiations

If something doesn’t sit right with you, trust your gut instinct. Don’t hesitate to raise concerns about terms that appear unfair or disadvantageous.

  1. Plan for the Future: Legal Protection

Thinking ahead is key; think about how your current choices could influence your long-term objectives. Safeguarding your future income can greatly impact your career and financial stability.

Don’t Leave Your Contracts to Chance:

Bethenny understood the importance of negotiating contracts. Ensure you do too.

Freeman Harris Solicitors are here to help you spot traps and discover hidden opportunities in your entertainment contracts.

If you have any concerns or need expert guidance, reach out to us to review your agreements and secure the best terms for your future. Contact Freeman Harris today to discuss how we can assist you.

Contact our legal team
If you would like to discuss this matter, please get in touch with our team for a consultation.