The King of France, Phillip the II, was enraged that England received the Holy Land. Petitioning his friend, the Pope, he was able to receive permission to attack Egypt and given the title of Crusader king. French forces landed on the Egyptian coast on March 5, 1189.
The Egyptian caliphate surrendered almost immediately. The Crusader reason was cowardice; the real reason was because to many Egyptian soldiers had gone to fight with Saladin.
Phillip, who accepted the surrender, was immediately dethroned by angry, propaganda filled Crusaders, who wanted to kill. One influential one, William de Bartholemew, said this;
"Who is it to say that Kings should declare our laws. It is only our Lord in Heaven who can truly declare our laws. We, being the Crusaders of His cause, should rule our nation, not petty kings."
With that, the French Republic was formed, with de Bartholemew the first Grand Master.
But, the Egyptians in Cairo still needed to pay. The French Army attacked and killed 85,000 citizens of the city. Then, they burned the entire thing to the ground, but was rebuilt by a new dynasty.