Franklin who won four golds at the 2012 London Games before coming away with one in a largely disappointing 2016 Olympic campaign, told NBC Sports she made the decision in consultation with coach Dave Durden.
"If I had a deadline to try and get better by, we were really worried that that would rush things and that could really impact the quality of the therapy and the work that we were trying to do getting back," Franklin told NBC. "I think both of us were very concerned with quality and wanting to make sure that we're doing the best that we can right now."
The US selection meeting for the world championships is 27 June to 1 July at Indianapolis.
The world championships are 14-30 July.