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With the partition of Schwarzburg County in 1599, Frankenhausen became the capital of the ''Unterherrschaft'' subdivision of the County of [[Schwarzburg-Rudolstadt]], which in 1710 was raised to a [[principality]]. [[Günther Victor, Prince of Schwarzburg|Prince Günther Victor]] was the last German monarch to abdicate, on 23 November (as Prince of Schwarzburg-Rudolstadt) and 25 November 1918 (as Prince of [[Schwarzburg-Sondershausen]]). The succeeding short-lived Free State of Schwarzburg-Rudolstadt merged into the newly created Thuringia in 1920.
Since 1818 a [[saline water]] well that had been used for centuries to extract salt has been used for [[saline (medicine)|saline]] baths and medical purposes. Therefore in 1927 Frankenhausen received the official title of a spa town (''Bad''). In the 19th century the town was also famous for the manufacture of [[Nacre|pearl buttons]]. Today it mainly depends on tourism and spa vacation.
Since 1972 Frankenhausen has been a [[Garrison|garrison town]], formerly of a [[motorised infantry]] regiment of the [[National People's Army]], from 1990 on of the [[13th Mechanized Infantry Division (Germany)|13th Mechanized Infantry Division]] of the [[German Army]].