Franktown is named in honour of Lieutenant Colonel (later General Sir) Francis Cockburn. Franktown was established sometimes after the settlement of Richmond in 1818, to serve as a major trading centre along with the other military settlements (Richmond, Perth, Lanark, etc.) that had been settled by disbanded British military personnel following the cessation of the War of 1812.

Lieutenant-Colonel Francis Cockburn had considerable success during the War of 1812 and by 1818 was made responsible for the military settlements in Upper Canada. He took great personnel interest in the military settlements and the potential prosperity of the district including the establishment of Franktown.