The area was not settled by European Americans until after the Revolutionary War, when pioneers came from New England, downstate, and as new immigrants.

The town of Franklin lies in the northern part of Delaware County, in an area of wooded hills, streams, ponds, historic homes, commercial buildings, and numerous winding roads.

The waterway was important to village development, not only for water supply but as transportation arteries for travel as well as shipment of lumber and goods to market.

The village of Franklin was platted in 1827 by John Edgerton, who had bought 100 acres (40 ha) for the site.

Before the Civil War, raising sheep and processing wool was more profitable than the cultivation of grain or rearing of cattle.

In 1835, the town gained approval by the state legislature for what it called the Delaware Literary Institute, for higher education.

The Civil War and growing tax support for public schools brought about a decline in attendance.

In the aftermath of the Civil War, dairying became more important; production of milk, butter, and cheese all increased.

In addition to licensed taverns, inns, and hotel, the business directory for the town included dry goods, hardware, furniture, grocery, druggists, carriagemakers, coopers, harness makers, shoemakers, foundry, cigar company, telegraph, ice cream parlor, marble works, doctors, dentists, lawyers, and other vocations.

Near the village, the Ouleout Valley Cemetery on Route 357, beginning in 1873, often draws attention for its handsome iron gate and well-manicured grounds.

An annual Franklin Day is held in August to raise funds for the preservation of Stone Hall, once part of the Delaware Literary Institute.

On July 25, 1992, dozens of groups marched along Main Street of the village in the bicentennial parade, which was videotaped for later viewing.

Since 1997, the Franklin Stage Company has done extensive renovations to the building and also raised money through foundations and government grants to support their work.

Since late 2001 the Greater Franklin Chamber of Commerce has maintained a website, which serves as a central community hub for information and news.