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Franklin's go-ahead blast came in the sixth inning off rookie right-hander Nick Rumbelow, the second reliever to follow Adam Warren. J.P. Arencibia drove home two insurance runs in the eighth with a flare single to right field off Bryan Mitchell.
The defeat, coupled with the Blue Jays' 3-2 loss to the Braves at Turner Field, kept the Yankees three games behind Toronto in the American League East race.
"I don't want to give up runs in any outing," Rumbelow said.