But he eventually owned up to his romantic encounter with the actress during an appearance on shock jock Howard Stern's satellite radio show, although he still maintains there was no sex involved.
"All right, we maybe kissed," he admitted.
"It was lame. When we made out it was so long ago.
"I was, like, a nice guy. The kiss is enough. It was also like, 'What the hell am I doing?' She was young."
Franco said was in the middle of shooting Spider-Man 2 when he and Lohan hooked up.
The actress would have been 17 at the time.
They had another bedroom encounter years later when Franco was staying at the same hotel as the actress while studying at UCLA (University of California, Los Angeles).
"We were at this hotel during a very dark period of her history and ... it seemed pretty damn clear that she liked me.
"She even broke into my room one time.
"I was on the couch and opened my eyes and there's Lindsay in my room at 3am!"
- Bang! Showbiz