Franklin (downtown and Main Street)
$-$$County-seat main street with outfitters (Outdoor 76, Fish Tales, Three Eagles), Lazy Hiker Brewing, cafes and diners, the Little Tennessee River Greenway and Nikwasi Mound. Pickin' on the Square live music runs Saturday evenings May through September.
Stay here if: You want walkable food and gear, AT shuttle access and the easiest base for Wayah, Winding Stair and the waterfalls.
Otto
$-$$Small unincorporated community on US 23 about 8.4 miles south of Franklin at 2,070 ft, with a post office and community building. Quiet and rural, on the way toward Georgia and the Siler/Wayah side of the AT via the Little Tennessee valley.
Stay here if: You want a quiet rural base south of town, cabins or a rental with space, and a short drive into town.
Cowee
$-$$Historic Cherokee and gem-mining valley north of Franklin (West's Mill historic district is about six miles north). Known for ruby and sapphire fee-dig mines and the Cowee Valley rubies.
Stay here if: You want a rural valley setting, rockhounding with kids, and to be near the Little Tennessee River north of town.
Nantahala (Gorge, river and lake)
$-$$$Not a town center but the national-forest, river and lake area west of Franklin: the Nantahala Gorge ('Land of the Noonday Sun'), Nantahala Outdoor Center, Wesser, and 3,000-ft Nantahala Lake with Lands End Marina. Rafting, paddling and fishing.
Stay here if: Paddling and rafting are the point; you want to be on the river, at campgrounds or lodges in the gorge, 45-60 minutes from Franklin (estimate).
Highlands Road corridor (US 64 east)
$$-$$$The eastern leg of the Mountain Waters Scenic Byway, locally 'the road to Highlands': it climbs about 2,000 ft in 20 miles through the Cullasaja Gorge past Cullasaja Falls, Bust Your Butt Falls, Dry Falls and Bridal Veil Falls to Highlands.
Stay here if: You prefer waterfalls and a more upscale mountain-resort setting in Highlands, with Whiteside Mountain nearby.