Green’s Dictionary of Slang

franzy house n.

[dial. franzy, SE frenzy, craziness, madness + house n.1 (1)/SE house as in madhouse]
(US)

1. a brothel.

[US]J.W. Carr ‘Words from Northwest Arkansas’ in DN III:ii 136: franzy house, n. house of ill fame.
[US]Randolph & Wilson Down in the Holler 109: A brothel is called a franzy-house.

2. a psychiatric institution.

C.H. Matschat Suwannee River 106: Lessen ye be keerful [...] an’ we-uns’ll hev to shut ye up in a franzy house.