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The State of Franklin (also the Free Republic of Franklin or the State of Frankland was an unrecognized, autonomous "territory" located in what is today eastern Tennessee. 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 fourteenth 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 re-assumed 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a secession (seceding from North Carolina, when its offer to Congress was not acted upon, and the original cession was rescinded).