Blackpool Pride has cancelled plans to hold a two-day festival at the town's Winter Gardens in June, three months before the US evangelist is due to speak at the complex.
Co-ordinator, Callum Gillies told the Blackpool Gazette: "The community was not happy with the event going ahead in the Winter Gardens because Franklin Graham goes totally against everything a gay pride event stands for.
"We can't be seen to be putting money into a venue that, eight weeks later, will support an event which is totally opposite to what we are doing."
An alternative location is being sought for Blackpool Pride.
Franklin Graham, the oldest son of late preacher Billy Graham, has spoken openly in support of traditional marriage and against homosexuality.
Nearly 8,000 have signed a petition which brands Franklin Graham a "hate preacher" and calls upon the UK Government to deny him a visa.
Responding to the petition, Mr Graham told Premier in January (video below): "I don't think I've been to any country where everybody was supportive - there's always churches or groups who don't like my theology or that we associate with this group or that group.
"I'm not coming to preach hate, I'm here to preach about a saviour - Jesus Christ who can make a difference in our lives if we put our faith and trust in him."
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