The Oneida tribe of Iroquois Indians first used the land. The first white settler came to Franklin in 1784 and settled in Bartlett Hallow.

In 1787 Nathan Edgerton settled and started the village where it is presently located. He created the first businesses and encouraged other settlers to locate in Franklin.

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Industry centered mostly around agriculture- hog and sheep farms. Dairy farming became an important industry after the Civil War.

The Catskill Turnpike was established in 1800 which started in Catskill and went to Wattles Ferry (Unadilla) by way of Franklin. Along the turnpike, there were toll gates in which travelers had to pay five cents for every mile they traveled. This brought many travelers by foot and stagecoach to Franklin for overnight accommodations. With the establishment of The Catskill Turnpike, this brought along the establishment of more taverns inns and hotels in Franklin. These also served as social gathering spots for the residents of Franklin.

Delaware Literary Institute established in 1835 was an important part of the life in Franklin. Not only for its excellence in education but for revenue for stores and the community social life centered on DLI.

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In 1869, there was a fire in a room over the clothing store of Abram and J.C. Bush on Main Street. Also, in the building were Stilson and Borst Hardware and Bartlett Sign Shop. The fire continued down the street burning the Douglas and Stilson Hardware store, the Chamberlin Brothers Drug, Book and Jewelry Store, the Post Office, Hines Photography Studio, and several other businesses. As soon as the debris from the fire was removed in 1869, this structure was built of local bricks and trimmed with cast iron. Great care was taken to reduce the risk of another fire.

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After the creation of DLI, the village of Franklin enter a period of growth and prosperity. By 1880 there were 40 businesses located in Franklin. Businesses included stores for dry goods, hardware, furniture, groceries, drugs, jewelry. Professional offices included doctors, dentists, and lawyers. Skilled craft persons were numerous also: cabinet makers, carriage makers, printers and publishers, tailors, shoemakers, coopers, and many others.  Some of these businesses included a doctor's office, dentist office, bank, jeweler, a newspaper/printing office, insurance, marble works, creameries, grocery stores, millinery and clothing stores, and many others. As travel to larger commercial centers became easier and the decision of the railroad to bypass the village of Franklin the business district declined.

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After the turn of the century, Franklin became a much quieter village with less industry but maintained its charm with well-kept houses and yards. Farming has continued but it is not to the same scale as it was. DLI has now become Franklin Central School and is the largest employer and is the center of most community activities. Franklin has continued to have a quality education with a graduation rate of over 90%. Today the businesses of Franklin have increased. This includes a doctor’s office, insurance agency, eye care, theater group, multiple restaurants, and others.

Since 1984 Franklin has been recognized as part of the New York State and National Register of Historic Sites.

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