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the southwest of Germany, do you mean near the Alsace? Because that explains why it is used in France too, because these areas were subject of long conflicts and under rule of both Germany and France.

I couldn't find the meaning, but maybe it's a variant of Kahn. In the south of Germany they speak dialects (well, everywhere in Germany, actually) and maybe that's why the 'n' fell away. Kahn means 'rowing boat' and is a much more common surname in Germany.