The ruling by U.S. District Judge Richard A
Jones is a victory for minimum wage workers, who will see their pay increase on April 1 to $11 from $9.47 an hour
The judge rejected the argument that franchise owners, who are required to raise wages at a faster pace than small businesses, are at risk of going out of business
"There is no actual evidence of the alleged negative impacts that plaintiffs fear will occur as a result of the faster phase-in schedule,"
the 43-page order states.
The International Franchise Association called the decision a "disappointment" and pledged to continue fighting for Seattle franchisees.
"The ordinance is clearly discriminatory and would harm hard-working small business owners who happen to be franchisees," said the franchise group's president Steve Caldeira. "It was never about Seattle raising the minimum wage to $15 wage, but rather the increase applied in a discriminatory way."
The group sued Seattle in June on behalf of five local franchises, including the owners of Comfort Inn and Holiday Inn hotel chains, as well as a local graphics business and a medical staffing agency
It asked the judge to temporarily reclassify franchises as small businesses. The order denies that request but doesn't mean the lawsuit is over.
The group says the ruling will impact 600 franchises with 19,000 workers in Seattle, including national chains such as McDonald's (MCD) and Subway, as well as franchises that have just one or two locations.