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Former unrecognized proposed US state
the historical proposed US state

The State of Franklin (also the Free Republic of Franklin, Lost State of Franklin, or the State of Frankland) was an unrecognized proposed state located in present day East Tennessee, in the United States. Franklin was created in 1784 from part of the territory west of the Appalachian Mountains that had been offered by North Carolina as a cession to Congress to help pay off debts related to the American War for Independence. It was founded with the intent of becoming the 14th state of the new United States. Franklin's first capital was Jonesborough. After the summer of 1785, the government of Franklin (which was by then based in Greeneville), ruled as a "parallel government" running alongside (but not harmoniously with) a re established North Carolina bureaucracy. Franklin was never admitted into the union. The extra legal state existed for only about four and a half years, ostensibly as a republic, after which North Carolina reassumed full control of the area. The creation of Franklin is novel, in that it resulted from both a cession (an offering from North Carolina to Congress) and a secession (seceding from North Carolina, when its offer to Congress was not acted upon and the original cession was rescinded).

The concept of a new western state came from Arthur Campbell of Washington County, Virginia, and John Sevier. After Virginia Gov. Henry stopped Campbell, Sevier and his followers renamed their proposed state Franklin and sought support for their cause from Benjamin Franklin. The Frankland movement had little success on the Kentucky frontier, as settlers there wanted their own state (which they achieved in 1792).

The United States Congress was heavily in debt at the close of the American War for Independence. In April 1784, the state of North Carolina voted "to give Congress the lying between the Allegheny Mountains" (as the entire Appalachian range was then called) "and the Mississippi River" to help offset its war debts. This area was a large part of what had been the Washington District (usually referred to simply as the Western Counties). These western counties had originally been acquired by lease from the Overhill Cherokee, out of which the Watauga Republic had arisen. The North Carolina cession to the federal government had a stipulation that Congress would have to accept responsibility for the area within two years, which, for various reasons, it was reluctant to do. The cession effectively left the western settlements of North Carolina alone in dealing with the Cherokee of the area, many of whom had not yet made peace with the new nation. These developments were not welcomed by the frontiersmen, who had pushed even further westward, gaining a foothold on the western Cumberland River at Fort Nashborough (now Nashville), or the Overmountain Men, many of whom had settled in the area during the days of the old Watauga Republic. Inhabitants of the region feared that the cash starved federal Congress might even be desperate enough to sell the frontier territory to a competing foreign power (such as France or Spain). Leaders were duly elected. John Sevier reluctantly became governor; Landon Carter, speaker of the Senate; William Cage, first speaker of the House of Representatives; and David Campbell, judge of the Superior Court. Thomas Talbot served as Senate clerk, while Thomas Chapman served as clerk of the House. The delegates were called to a constitutional convention held at Jonesborough in December of that year. There, they drafted a constitution that excluded lawyers, doctors, and preachers as candidates for election to the legislature. The constitution was defeated in referendum. Afterward, the area continued to operate under tenets of the North Carolina state constitution.

On May 16, 1785, a delegation submitted a petition for statehood to Congress. Eventually, seven states voted to admit what would have been the 14th federal state under the proposed name of "Frankland". This was, however, less than the two thirds majority required under the Articles of Confederation to add additional states to the confederation. The following month, the Franklin government convened to address their options and to replace the vacancy at speaker of the House, to which position they elected Joseph Hardin. In an attempt to curry favor for their cause, delegation leaders changed the "official" name of the area to "Franklin" (ostensibly after Benjamin Franklin). Sevier even tried to persuade Franklin to support their cause by letter, but he declined, writing:

Franklin, still at odds with North Carolina over taxation, protection, and other issues, began operating as a de facto independent republic after the failed statehood attempt. and even then, hostilities continued in the area for years afterward.

The small state began its demise in 1786, with several key residents and supporters of Franklin withdrawing their support in favor of a newly reinterested North Carolina.

In late March 1788, the Chickamauga, Chickasaw, and other tribes collectively began to attack American frontier settlements in Franklin. A desperate Sevier sought a loan from the Spanish government. With help from James White (who was later found to be a paid agent of Spain), he attempted to place Franklin under Spanish rule. Opposed to any foreign nation gaining a foothold in Franklin, North Carolina officials arrested Sevier in August 1788. Sevier's supporters quickly freed him from the local jail and retreated to "Lesser Franklin". In February 1789, Sevier and the last holdouts of the "Lost State" swore oaths of allegiance to North Carolina after turning themselves in. The Lesser Franklin government finally ended in 1791, when Governor William Blount, of the newly formed Southwest Territory, met the Cherokee chieftains on the site of the future Knoxville, and they made the Treaty of Holston. The Overhill Cherokee now acknowledged the authority of the United States government, and ceded to the federal government all of their lands south of the French Broad, almost as far as the Little Tennessee River. Samuel Doak (1749–1830); Presbyterian minister, pioneer, founded earliest schools and churches in East Tennessee; delegate to the "Lost State" of Franklin which convened in Greeneville. Col. Joseph Hardin (1734–1801); Speaker of the House for the State of Franklin; trustee of Greeneville (now Tusculum) College. John Sevier (1745–1815); Governor of Franklin; first governor of Tennessee. Lt. Samuel Wear (1753–April 3, 1817); co founder of Franklin; veteran of the Revolutionary War, War of 1812, and the Indian wars; fought at the Battle of Kings Mountain. Gen. James White (1747–August 14, 1821); American pioneer and soldier who founded Knoxville, Tennessee.

The Washington County farm of Col. John Tipton, where the 1788 Battle of Franklin was fought, has been preserved by the State of Tennessee as the Tipton Haynes State Historic Site in southeastern Johnson City, Tennessee. Samuel Tipton, a son of Col. John Tipton, donated land for a town to be located along the east side of the Doe River near its confluence with the Watauga River in what was then known as Wayne County, and the town was named in his honor as Tiptonville (not to be confused with present day Tiptonville, in West Tennessee). The losers of the Battle of Franklin (1788) later regained political power and renamed Wayne County as Carter County (after the former State of Franklin Senate Speaker Landon Carter), and also renamed Tiptonville as Elizabethton (after the wife of Landon Carter, Elizabeth Carter) when Tennessee was first admitted to the Union in 1796 and John Sevier became the first governor of Tennessee. The Franklin area also played a role in the Southern Unionist East Tennessee Convention. Throughout the first half of the 19th century, East Tennessee was frequently at odds with Tennessee's two other grand divisions, Middle Tennessee and West Tennessee. Many East Tennesseans felt the state legislature showed persistent favoritism toward the other two divisions, especially over funding for internal improvements. In the early 1840s, several East Tennessee leaders, among them Congressman (and future President) Andrew Johnson, led a movement to form a separate state in East Tennessee known as "Frankland". Though this movement was unsuccessful, the idea that East Tennessee should be a separate state periodically resurfaced over the subsequent two decades. Many businesses in the State of Franklin use that name to keep the legacy alive, such as the "State of Franklin Bank", based in Johnson City, Tennessee. One of the main thoroughfares in Johnson City is named "State of Franklin Road" and passes by East Tennessee State University. In law school examinations in the U. S., a fictional "State of Franklin" is used as a placeholder name for a generic state, often the one in which the property of Blackacre is located. This way, variations in existing state law do not complicate the theoretical legal issues arising from the property disputes. By convention, Blackacre is located in Acre County, Franklin. The combined present day (as of 2015 census) population of the counties that would have made up the State of Franklin is 540,000, which would have made the state have about 40,000 people fewer than Wyoming, the current least populous state.