Tennessee has such a unique flag. When I first got this as a custom order, I did a little research like I always do. It turns out the three stars represent the three "Grand Divisions" of the state, East Tennessee, Middle Tennessee, and West Tennessee. The blue circle around the stars represents the unity of the "Grand Divisions". And what about the blue bar on the right side? (The one that drives my wife crazy because it makes it not symmetrical). The blue bar at the edge of the flag was purely a design consideration. You can see the stars represented in many Tennessee business logos--like First Tennessee Bank.
Each piece is totally unique so the item may differ slightly from photos. It is equipped with a hanger on the back so it's ready to hang on the wall.