Hotel franchise owners get $500k bonus to take $1 billion of US profits

The owners of the world’s most popular hotel franchise have been given an unprecedented $500,000 bonus to reduce their tax bill by $1bn by the end of 2021.

The owners of The Sweetgreen franchise in Canada have been told they will receive an annual salary of $1m for the next five years, which they can then split between them.

The bonus, which comes on top of an earlier payment of $2.4m, will be paid to all franchisees who have already received a salary of more than $1 million.

The Sweetgreen owners will be entitled to a $50,000 signing bonus and $25,000 for each of their first five years in business.

The remaining $1.5m will be distributed to franchisees in line with the rest of the Canadian entertainment industry, with an average of about $3.4 million being paid out in the first five to six years.

A further $25m will come from an extra $500m the franchisees receive each year from the franchise fee.

The deal is expected to help reduce taxes by $100m in 2021, and the tax office has previously estimated that it would save about $1billion a year.

It follows a deal in October to split the profits of The Biggest Loser, the franchise that has been in operation since 1999.

The agreement was a key plank of the two-year deal negotiated between the two companies and the entertainment tax authority (ETA).

The deal allowed the owners to take a tax deduction of about 2% on the income generated from the television show.