<PAGE>

                                                                    EXHIBIT 10.1

                                                                  Execution Copy

          PURCHASE AGREEMENT dated as of December 1, 2001, between FRANKLIN
CAPITAL CORPORATION, a Utah corporation (the "Seller"), and FRANKLIN RECEIVABLES
LLC, a Delaware limited liability company (the "Purchaser").

          WHEREAS in the regular course of its business, the Seller has
purchased certain prime, non-prime and sub-prime motor vehicle retail
installment sale contracts secured by new and used automobiles and light trucks
from motor vehicle dealers;

          WHEREAS the Seller and the Purchaser wish to set forth the terms
pursuant to which the Receivables (as hereinafter defined) are to be sold by the
Seller to the Purchaser, which Receivables will be transferred by the Purchaser,
pursuant to the Sale and Servicing Agreement (as hereinafter defined), to
Franklin Auto Trust 2001-2 (the "Trust"), which Trust will issue four classes of
Asset Backed Notes (the "Notes"), which will be debt of the Trust and
Certificates representing the ownership interest in the Trust (the
"Certificates").

          NOW, THEREFORE, in consideration of the foregoing, other good and
valuable consideration and the mutual terms and covenants contained herein, the
parties hereto agree as follows:

                                    ARTICLE I

                               Certain Definitions
                               -------------------

          Terms not defined in this Agreement shall have the meaning set forth
in the Sale and Servicing Agreement. As used in this Agreement, the following
terms shall, unless the context otherwise requires, have the following meanings
(such meanings to be equally applicable to the singular and plural forms of the
terms defined):

          "Agreement" shall mean this Purchase Agreement, as the same may be
           ---------
amended and supplemented from time to time.

          "Assignment" shall mean the document of assignment attached to this
           ----------
Agreement as Exhibit A.

          "Certificateholder" means a holder of a Certificate.
           -----------------

          "Closing Date" shall mean December 13, 2001.
           ------------

          "Collections" shall mean all amounts collected by the Servicer (from
           -----------
whatever source) on or with respect to the Receivables.

<PAGE>

          "Computer Tape" means the computer tapes or other electronic media
           -------------
furnished by the Seller to the Purchaser describing certain characteristics of
the Receivables.

          "Lien" means a security interest, lien, charge, pledge, equity, or
           ----
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Receivable by operation of law as a result of any
act or omission by the related Obligor.

          "Noteholder" means a holder of a Note.
           ----------

          "Obligor" on a Receivable means the purchaser or co-purchasers of the
           -------
Financed Vehicle and any other Person who owes payments under the Receivable.

          "Prospectus" shall mean the Prospectus (as defined in the Underwriting
           ----------
Agreement).

     "Purchase Amount" means, with respect to any Receivable required to be
      ---------------
repurchased by the Seller pursuant to Section 6.02 of this Agreement, an amount
equal to the sum of (i) 100% of the Principal Balance thereof and (ii) all
accrued and unpaid interest thereon (including one month's interest thereon, in
the month of payment, at the APR less, so long as Franklin Capital is the
Servicer, the Base Servicing Fee).

          "Purchaser" shall mean Franklin Receivables LLC, a Delaware limited
           ---------
liability company, its successors and assigns.

          "Receivable" shall mean any Contract listed on Schedule A (which
           ----------
Schedule may be in the form of microfiche).

          "Repurchase Event" shall have the meaning specified in Section 6.02.
           ----------------

          "Sale and Servicing Agreement" shall mean the Sale and Servicing
           ----------------------------
Agreement dated as of December 1, 2001, among the Trust, as issuer, Franklin
Receivables LLC, as seller, Franklin Capital Corporation, as servicer and
Franklin Resources, Inc., as representative, as the same may be amended and
supplemented from time to time.

          "Schedule of Receivables" shall mean the list of Receivables annexed
           -----------------------
hereto as Schedule A.

          "Security Insurer" shall mean MBIA Insurance Corporation.
           ----------------

          "Seller" shall mean Franklin Capital Corporation, a Utah corporation,
           ------
its successors and assigns.

          "Underwriting Agreement" shall mean the Underwriting Agreement dated
           ----------------------
November 28, 2001 among Salomon Smith Barney Inc., the Purchaser and the Seller.

                                      -2-

<PAGE>

                                   ARTICLE II

                            Conveyance of Receivables
                            -------------------------

          SECTION 2.01. Conveyance of Receivables. In consideration of the
                        -------------------------
Purchaser's delivery to or upon the order of the Seller of $299,229,523.28 the
Seller does hereby sell, transfer, assign, set over and otherwise convey to the
Purchaser, without recourse (subject to the obligations herein), all right,
title and interest of the Seller in and to:

          (i)   the Receivables, and all monies representing interest payments
and principal payments received thereunder on and after the Cutoff Date;

          (ii)  an assignment of the security interests in the Financed Vehicles
granted by Obligors pursuant to the Receivables and any other interest of the
Seller in such Financed Vehicles;

          (iii) any proceeds with respect to the Receivables from claims on any
physical damage, credit life or disability insurance policies covering Financed
Vehicles or Obligors and any proceeds from the liquidation of the Receivables;

          (iv)  any proceeds from any Receivables repurchased by a Dealer,
pursuant to a Dealer Agreement, as a result of a breach of representation or
warranty in the related Dealer Agreement;

          (v)   all of the Seller's rights under any extended warranty service
contracts on the Financed Vehicles;

          (vi)  the related Receivables Files; and

          (vii) the proceeds of any and all of the foregoing.

          SECTION 2.02. RESERVED.

          SECTION 2.03. The Closing. The sale and purchase of the Receivables
                        -----------
shall take place at a closing (the "Closing") at the offices of Morrison &
Foerster LLP, 1290 Avenue of the Americas, 40th Floor, New York, New York 10104
on the Closing Date, simultaneously with the closings under the Sale and
Servicing Agreement.

                                      -3-

<PAGE>

                                   ARTICLE III

                         Representations and Warranties
                         ------------------------------

          SECTION 3.01. Representations and Warranties of the Purchaser. The
                        ------------------------------
Purchaser hereby represents and warrants to the Seller as of the date hereof and
as of the Closing Date:

          (a) Organization and Good Standing. The Purchaser has been duly
              ------------------------------
organized and is validly existing as a limited liability company in good
standing under the laws of the State of Utah, with the power and authority to
own its properties and to conduct its business as such properties are currently
owned and such business is presently conducted, and had at all relevant times,
and has, the power, authority and legal right to acquire and own the
Receivables.

          (b) Due Qualification. The Purchaser is duly qualified to do business
              -----------------
and is in good standing, and has obtained all necessary licenses and approvals,
in all jurisdictions in which the ownership or lease of property or the conduct
of its business shall require such qualifications.

          (c) Power and Authority. The Purchaser has the power and authority to
              -------------------
execute and deliver this Agreement and to carry out its terms and the execution,
delivery and performance of this Agreement has been duly authorized by the
Purchaser by all necessary action.

          (d) No Violation. The consummation of the transactions contemplated by
              ------------
this Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, nor constitute (with
or without notice or lapse of time or both) a default under, the certificate of
formation or limited liability company agreement of the Purchaser, or any
indenture, agreement or other instrument to which the Purchaser is a party or by
which it is bound; nor result in the creation or imposition of any Lien upon any
of its properties pursuant to the terms of any such indenture, agreement or
other instrument (other than the Sale and Servicing Agreement) nor violate any
law or, to the best of the Purchaser's knowledge, any order, rule or regulation
applicable to the Purchaser of any court or of any Federal or state regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Purchaser or its properties.

          (e) No Proceedings. There are no proceedings or investigations pending
              --------------
or, to the Purchaser's best knowledge, threatened, before any court, regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Purchaser or its properties: (i) asserting the invalidity
of this Agreement, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Agreement or (iii) seeking any determination
or ruling that might materially and adversely affect the performance by the
Purchaser of its obligations under, or the validity or enforceability of, this
Agreement.

          SECTION 3.02. Representations and Warranties of the Seller. (a) The
                        --------------------------------------------
Seller hereby represents and warrants to the Purchaser as of the date hereof and
as of the Closing Date:

                                      -4-

<PAGE>

          (i)   Organization and Good Standing. The Seller has been duly
                ------------------------------
     organized and is validly existing as a corporation in good standing under
     the laws of the State of Utah, with the power and authority to own its
     properties and to conduct its business as such properties are currently
     owned and such business is presently conducted, and had at all relevant
     times, and has, the power, authority and legal right to acquire and own the
     Receivables.

          (ii)  Due Qualification. The Seller is duly qualified to do business
                -----------------
     as a foreign corporation and is in good standing, and has obtained all
     necessary licenses and approvals, in all jurisdictions in which the
     ownership or lease of property or the conduct of its business shall require
     such qualifications.

          (iii) Power and Authority. The Seller has the power and authority to
                -------------------
     execute and deliver this Agreement and to carry out its terms; the Seller
     has full power and authority to sell and assign the property sold and
     assigned to the Purchaser hereby and has duly authorized such sale and
     assignment to the Purchaser by all necessary corporate action; and the
     execution, delivery and performance of this Agreement has been duly
     authorized by the Seller by all necessary corporate action.

          (iv)  No Violation. The consummation of the transactions contemplated
                ------------
     by this Agreement and the fulfillment of the terms hereof shall not
     conflict with, result in any breach of any of the terms and provisions of,
     nor constitute (with or without notice or lapse of time) or both a default
     under, the articles of incorporation or by-laws of the Seller, or any
     indenture, agreement or other instrument to which the Seller is a party or
     by which it is bound; nor result in the creation or imposition of any Lien
     upon any of its properties pursuant to the terms of any such indenture,
     agreement or other instrument (other than this Agreement); nor violate any
     law or, to the best of the Seller's knowledge, any order, rule or
     regulation applicable to the Seller of any court or of any Federal or state
     regulatory body, administrative agency or other governmental
     instrumentality having jurisdiction over the Seller or its properties.

          (v)   No Proceedings. To the Seller's best knowledge, there are no
                --------------
     proceedings or investigations pending, or threatened, before any court,
     regulatory body, administrative agency or other governmental
     instrumentality having jurisdiction over the Seller or its properties: (A)
     asserting the invalidity of this Agreement, (B) seeking to prevent the
     consummation of any of the transactions contemplated by this Agreement, or
     (C) seeking any determination or ruling that might materially and adversely
     affect the performance by the Seller of its obligations under, or the
     validity or enforceability of, this Agreement.

          (b)   The Seller represents to the Purchaser that, as of the date set
forth in Section 3.1 of the Sale and Servicing Agreement, each of the
representations set forth in said section is hereby made to the Purchaser and
the Security Insurer as if the same were fully set forth herein.

                                   ARTICLE IV

                                       -5-

<PAGE>

                                   Conditions
                                   ----------

          SECTION 4.01. Conditions to Obligation of the Purchaser. The
                        -----------------------------------------
obligation of the Purchaser to purchase the Receivables is subject to the
satisfaction of the following conditions:

          (a)   Representations and Warranties True. The representations and
                -----------------------------------
warranties of the Seller hereunder shall be true and correct on the Closing Date
with the same effect as if then made, and the Seller shall have performed all
obligations to be performed by it hereunder on or prior to the Closing Date.

          (b)   Computer Files Marked. The Seller shall, at its own expense, on
                ---------------------
or prior to the Closing Date, indicate in its computer files that receivables
created in connection with the Receivables have been sold to the Purchaser
pursuant to this Agreement, and deliver to the Purchaser the Schedule of
Receivables certified by the Chairman, the President, a Vice President or the
Treasurer to be true, correct and complete.

          (c)   Documents To Be Delivered by the Seller at the Closing.
                ------------------------------------------------------

          (i)   The Assignment. At the Closing, the Seller will execute and
                --------------
     deliver an Assignment. The Assignment shall be substantially in the form of
     Exhibit A hereto.

          (ii)  Evidence of UCC Filing. On or prior to the Closing Date, the
                ----------------------
     Seller shall record and file, at its own expense, a UCC-l financing
     statement with the Utah Department of Commerce, Division of Corporations
     and Commercial Code, authorized by the Seller, as seller or debtor, and
     naming the Purchaser, as purchaser or secured party, describing the
     Receivables and the other property included in the Trust Property as
     collateral, meeting the requirements of the laws of each such jurisdiction
     and in such manner as is necessary to perfect the sale, transfer,
     assignment and conveyance of such Receivables to the Purchaser. The Seller
     shall deliver a file-stamped copy, or other evidence satisfactory to the
     Purchaser of such filing, to the Purchaser on or prior to the Closing Date.

          (iii) Other Documents. Such other documents as the Purchaser may
                ---------------
     reasonably request.

          (d)   Other Transactions. The transactions contemplated by the Sale
                ------------------
and Servicing Agreement to be consummated on the Closing Date, shall be
consummated on such date.

          SECTION 4.02. Conditions to Obligation of the Seller. The obligation
                        --------------------------------------
of the Seller to sell the Receivables to the Purchaser is subject to the
satisfaction of the following conditions:

          (a)   Representations and Warranties True. The representations and
                -----------------------------------
warranties of the Purchaser hereunder shall be true and correct on the Closing
Date with the same effect as if

                                      -6-

<PAGE>

then made, and the Seller shall have performed all obligations to be performed
by it hereunder on or prior to the Closing Date.

          (b) Receivables Purchase Price. On the Closing Date, the Purchaser
              --------------------------
shall have delivered to the Seller the purchase price specified in Section 2.01
of this Agreement.


                                    ARTICLE V

                             Covenants of the Seller
                             -----------------------

          The Seller agrees with the Purchaser as follows; provided, however,
                                                           --------  -------
that to the extent that any provision of this Article conflicts with any
provision of the Sale and Servicing Agreement, the Sale and Servicing Agreement
shall govern:

          SECTION 5.01. Protection of Right, Title and Interest. (a) Filings.
                        ---------------------------------------      -------
The Seller shall cause all financing statements and continuation statements and
any other necessary documents covering the right, title and interest of the
Purchaser in and to the Receivables and the other property included in the Trust
Property to be promptly filed, and at all times to be kept recorded, registered
and filed, all in such manner and in such places as may be required by law fully
to preserve and protect the right, title and interest of the Purchaser hereunder
to the Receivables and the other property included in the Trust Property. The
Seller shall deliver to the Purchaser file stamped copies of, or filing receipts
for, any document recorded, registered or filed as provided above, as soon as
available following such recordation, registration or filing. The Purchaser
shall cooperate fully with the Seller in connection with the obligations set
forth above and will execute any and all documents reasonably required to
fulfill the intent of this paragraph.

          (b) Name Change. Within 15 days after the Seller makes any change in
              -----------
its name, identity or corporate structure which would make any financing
statement or continuation statement filed in accordance with paragraph (a) above
seriously misleading within the applicable provisions of the UCC or any title
statute, the Seller shall give the Purchaser notice of any such change, and no
later than 5 days after the effective date thereof, shall file such financing
statements or amendments as may be necessary to continue the perfection of the
Purchaser's interest in the property included in the Owner Trust Estate.

          SECTION 5.02. Other Liens or Interests. Except for the conveyances
                        ------------------------
hereunder and pursuant to the Sale and Servicing Agreement, the Seller will not
sell, pledge, assign or transfer to any Person, or grant, create, incur, assume
or suffer to exist any Lien on, any interest in, to and under the Receivables,
and the Seller shall defend the right, title and interest of the Purchaser in,
to and under the Receivables against all claims of third parties claiming
through or under the Seller; provided, however, that the Seller's obligations
                             --------  -------
under this Section shall terminate upon the termination of the Trust pursuant to
the Sale and Servicing Agreement.

          SECTION 5.03. Chief Executive Office. During the term of the
                        ----------------------
Receivables, the Seller will maintain its chief executive office in Utah.

                                       -7-

<PAGE>

          SECTION 5.04. Costs and Expenses. The Seller agrees to pay all
                        ------------------
reasonable costs and disbursements in connection with the perfection, as against
all third parties, of the Purchaser's right, title and interest in and to the
Receivables.

                                   ARTICLE VI

                            Miscellaneous Provisions
                            ------------------------

          SECTION 6.01. Obligations of Seller. The obligations of the Seller
                        ---------------------
under this Agreement shall not be affected by reason of any invalidity,
illegality or irregularity of any Receivable.

          SECTION 6.02. Repurchase Events. The Seller hereby covenants and
                        -----------------
agrees with the Purchaser for the benefit of the Purchaser, the Trust, the
Trustee, the Noteholders, the Certificateholders and the Security Insurer that
the occurrence of a breach of any of the Seller's representations and warranties
contained in Section 3.02(b) shall constitute events obligating the Seller to
repurchase Receivables hereunder ("Repurchase Events"), at the Purchase Amount
from the Purchaser or from the Trustee. The repurchase obligation of the Seller
shall constitute the sole remedy to the Purchaser, the Trust, the Trustee, the
Noteholders or the Certificateholders against the Seller with respect to any
Repurchase Event.

          SECTION 6.03. Purchaser Assignment of Repurchased Receivables. With
                        -----------------------------------------------
respect to all Receivables repurchased by the Seller pursuant to this Agreement,
the Purchaser shall assign, without recourse, representation or warranty, to the
Seller all the Purchaser's right, title and interest in and to such Receivables,
and all security and documents relating thereto.

          SECTION 6.04. [Reserved]

          SECTION 6.05. Trust. The Seller acknowledges and agrees that (a) the
                        -----
Purchaser will, pursuant to the Sale and Servicing Agreement, sell the
Receivables to the Trust and assign its rights under this Agreement to the
Trust, and (b) the representations and warranties contained in this Agreement
and the rights of the Purchaser under this Agreement, including those under
Section 6.02, are intended to benefit the Trust, the Noteholders, the
Certificateholders and the Security Insurer. The Seller hereby consents to all
such sales and assignments.

          SECTION 6.06. Amendment. This Agreement may be amended from time to
                        ---------
time, with prior written notice to the Rating Agencies, by a written amendment
duly executed and delivered by the Seller and the Purchaser, without the consent
of the Noteholders, but with the consent of the Security Insurer, for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Noteholders; provided that such amendment will not, in the Opinion of
Counsel satisfactory to the Trustee, materially and adversely affect the
interest of any Noteholder. This Agreement may also be amended by the Seller and
the Purchaser, with prior written notice to the

                                      -8-

<PAGE>

Rating Agencies, with the consent of the holders of Notes evidencing at least a
majority of the outstanding principal amount of the Notes for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Noteholders and with the consent of the Security Insurer; provided, however,
                                                          --------  -------
that no such amendment may (i) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments on Receivables or
distributions that are required to be made for the benefit of the Noteholders or
(ii) reduce the aforesaid percentage of the Notes which are required to consent
to any such amendment, without the consent of the holders of all the outstanding
Notes.

          SECTION 6.07. Accountants' Letters. (a) PricewaterhouseCoopers LLP
                        --------------------
will review the characteristics of the Receivables described in the Schedule of
Receivables set forth as Schedule A hereto and will compare those
characteristics to the information with respect to the Receivables contained in
the Prospectus Supplement dated November 28, 2001; (b) the Seller will cooperate
with the Purchaser and PricewaterhouseCoopers LLP in making available all
information and taking all steps reasonably necessary to permit such accountants
to complete the review set forth in clause (a) above and to deliver the letters
required of them under the Underwriting Agreement; (c) PricewaterhouseCoopers
LLP will deliver to the Purchaser a letter, dated the date of the Prospectus, in
the form previously agreed to by the Seller and the Purchaser, with respect to
the financial and statistical information contained in the Prospectus Supplement
dated November 28, 2001 and with respect to such other information as may be
agreed in the form of the letter.

          SECTION 6.08. Waivers. No failure or delay on the part of the
                        -------
Purchaser in exercising any power, right or remedy under this Agreement or any
Assignment shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or remedy preclude any other or further
exercise thereof or the exercise of any other power, right or remedy.

          SECTION 6.09. Notices. All demands, notices and communications under
                        -------
this Agreement shall be in writing, personally delivered, mailed by certified
mail, return receipt requested or delivered by overnight courier, and shall be
deemed to have been duly given upon receipt (a) in the case of the Seller, to 47
West 200 South, Suite 500, Salt lake City, UT 84101, Attention: Harold E.
Miller, Jr., with a copy to Franklin Resources, Inc., One Franklin Parkway, San
Mateo, CA 94403, (b) in the case of the Purchaser, to 47 West 200 South, Suite
500, Salt lake City, UT 84101, Attention: Harold E. Miller, Jr., with a copy to
Franklin Resources, Inc., One Franklin Parkway, San Mateo, CA 94403, (c) in the
case of Moody's, to Moody's Investors Service, Inc., ABS Monitoring Department,
99 Church Street, New York, New York 10007; (d) in the case of Standard &
Poor's, to Standard & Poor's Corporation, 55 Water Street, New York, New York
10041, Attention of Asset Backed Surveillance Department; (e) in the case of the
Security Insurer, to MBIA Insurance Corporation, 113 King Street, Armonk, New
York 10504, Attn: Insured Portfolio Management (IPM-SF), or as to each of the
foregoing, at such other address as shall be designated by written notice to the
other parties.

          SECTION 6.10. Costs and Expenses. The Seller will pay all expenses
                        ------------------
incident to the performance of its obligations under this Agreement and the
Seller agrees to pay all

                                       -9-

<PAGE>

reasonable out-of-pocket costs and expenses of the Purchaser, excluding fees and
expenses of counsel, in connection with the perfection as against third parties
of the Purchaser's right, title and interest in and to the Receivables and the
enforcement of any obligation of the Seller hereunder.

          SECTION 6.11. Representations of the Seller and the Purchaser. The
                        -----------------------------------------------
respective agreements, representations, warranties and other statements by the
Seller and the Purchaser set forth in or made pursuant to this Agreement shall
remain in full force and effect and will survive the closing under Section 2.03.

          SECTION 6.12. Confidential Information. The Purchaser agrees that it
                        ------------------------
will neither use nor disclose to any Person the names and addresses of the
Obligors under the Receivables, except in connection with the enforcement of the
Purchaser's rights hereunder, under the Sale and Servicing Agreement or as
required by any of the foregoing or by law.

          SECTION 6.13. Headings and Cross-References. The various headings in
                        -----------------------------
this Agreement are included for convenience only and shall not affect the
meaning or interpretation of any provision of this Agreement. References in this
Agreement to Section names or numbers are to such Sections of this Agreement.

          SECTION 6.14. GOVERNING LAW. THIS AGREEMENT AND THE ASSIGNMENTS SHALL
                        -------------
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER OR THEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

          SECTION 6.15. Counterparts. This Agreement may be executed in two or
                        ------------
more counterparts and by different parties on separate counterparts, each of
which shall be an original, but all of which together shall constitute one and
the same instrument.

          SECTION 6.16. Third Party Beneficiary. The Security Insurer is an
                        -----------------------
express third party beneficiary of this Agreement.

          SECTION 6.17. No Proceedings. So long as this Agreement is in effect,
                        --------------
and for one year and one day following its termination, the Seller agrees that
it will not file any involuntary petition or otherwise institute any bankruptcy,
reorganization arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy law or similar law against the
Purchaser.

                                      -10-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers duly authorized as of the date and year
first above written.

                              FRANKLIN RECEIVABLES LLC,
                                  as Purchaser, by Franklin Capital Corporation,
                                  its managing member



                              By:  /s/ Harold Miller
                                  -------------------------------------
                                 Name: Harold E. Miller
                                 Title: President / CEO



                              FRANKLIN CAPITAL CORPORATION
                                as Seller

                              By:  /s/ Harold Miller
                                  -------------------------------------
                                 Name: Harold E. Miller
                                 Title: President / CEO

                                      -11-

<PAGE>

                                                                       EXHIBIT A

                                   ASSIGNMENT

     For value received, in accordance with the Purchase Agreement (the
"Purchase Agreement") dated as of December 1, 2001, between the undersigned and
Franklin Receivables LLC (the "Purchaser"), the undersigned does hereby sell,
assign, transfer and otherwise convey unto the Purchaser, without recourse, all
right, title and interest of the undersigned in and to (i) the Receivables, and
all monies representing interest and principal payments received thereon on and
after the Cutoff Date; (ii) the security interest of the Seller in the Financed
Vehicles granted by the Obligors pursuant thereto and any other interest of the
Seller in such Financed Vehicles; (iii) the interest of the Seller in any
proceeds with respect to the Receivables from claims on any physical damage,
credit life or disability insurance policies relating to the Financed Vehicles
or Obligors and any proceeds from the liquidation of the Receivables; (iv) the
interest of the Seller in any proceeds from any Receivables repurchased by a
Dealer pursuant to a Dealer Agreement as a result of a breach of a
representation or warranty in the related Dealer Agreement; (v) all rights under
any extended warranty service contracts on the related Financed Vehicles; (vi)
the related Receivables Files; and (vii) the proceeds of any and all of the
foregoing. The foregoing sale does not constitute and is not intended to result
in any assumption by the Purchaser of any obligation of the undersigned to the
Obligors, insurers or any other person in connection with the Receivables,
Receivable Files, any insurance policies or any agreement or instrument relating
to any of them.

     This Assignment is made pursuant to and upon the representations,
warranties and agreements on the part of the undersigned contained in the
Purchase Agreement and is to be

                                      A-1

<PAGE>

governed by the Purchase Agreement. The undersigned acknowledges and agrees that
the Purchaser may further assign the items enumerated in clauses (i) through
(vii) above to Franklin Auto Trust 2001-2 which may in turn assign its interests
in the items in (i) through (vii) to The Bank of New York, as trustee (the
"Trustee") for the benefit of the Noteholders and the Security Insurer and that
the Trustee will have the right to enforce any of the rights of the Purchaser
under the Purchase Agreement.

     Capitalized terms used herein and not otherwise defined shall have the
meaning assigned to them in the Purchase Agreement.

                                      A-2

<PAGE>

     IN WITNESS WHEREOF, the undersigned has caused this Assignment to be duly
executed as of December 1, 2001.

                                  FRANKLIN CAPITAL CORPORATION

                                  By: /s/ Harold Miller
                                      ----------------------------------
                                     Name: Harold Miller
                                     Title: President and CEO

                                      A-3

<PAGE>

                                                                      SCHEDULE A


                             Schedule of Receivables
                             -----------------------

                      [Delivered to the Trustee at Closing]

<PAGE>

                                                                      SCHEDULE I

                          Location of Receivable Files

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