Established in 1872 and first named Morgan for a railroad official, Franklin stood on the right-of-way of the International Railway Company and in its first year had a depot and three stores. By 1879, it had 200 residents, and voters transferred the county seat from Calvert to Morgan. The community applied for a post office in 1880, but because another Texas post office was named Morgan, the town was renamed Franklin after the original county seat. A stone courthouse designed by R. E. Ruffini was completed in 1882, and the town's first newspaper, the Franklin Weekly, was published by J. A. Keigewin. By 1885, Franklin had three hotels, three churches, and two gristmills, while mineral springs drew visitors to the area for many years. A cemetery was formally established in 1880 at a site where several graves already existed. The community's first school building, a frame structure, burned in 1894 and was replaced. The First National Bank of Franklin was chartered in 1905, the First State Bank was established in 1913, and a Carnegie Library was built and equipped with an auditorium. By the 1970s, Franklin was an incorporated community with a mayor-council form of city government.