Where? The State of Franklin is one of the least-known bits of American history.
The State of Franklin was set up in 1784 out of the westerly portion of the colonial state of North Carolina. While government officials in "the State of Franklin" claimed that Franklin was a state in the newly-formed United States of America, Franklin was never officially admitted into the Union of the United States and existed for only four years. Davy Crockett was born in the territory during those four years.
Shortly after the War of Independence, the original colonies were asked to pay for the war efforts and create a country with a sound financial policy. Since the taxing the population was difficult and cash was in short supply, North Carolina ceded the western portion of the state to the federal government as its payment. Before the Congress could accept the offer, North Carolina withdrew the offer.
The citizens of the region decided that federal rule in the meantime was probably a good idea since North Carolina as a state had given this remote region little support in its fight with the Indians or protection from criminal refugees. They saw other benefits as an independent state in terms of taxation, representation and an understanding attitude toward local problems. Representatives of the North Carolina counties of Sullivan, Washington, Greene, and Davidson accepted the offer of cessation to federal territory.
The "state" of Franklin existed for only four years and then merged with the new state of Tennessee.
You can read more about the State of Franklin (often spelled Frankland) in Wikipedia.org at http://en.wikipedia.org/wiki/State_of_Franklin