SUPPLEMENT DATED AUGUST 1, 1997
TO THE PROSPECTUS OF
Franklin California Tax-Free Income Fund
dated August 1, 1997
I. The section "Sales Charge Waivers" under "How Do I Buy Shares? - Sales
Charge Reductions and Waivers" is amended to add the following new category 4
to the list of sales charge waiver categories and to renumber the remaining
waiver categories accordingly:
4. Redemptions of Class A shares from any of the Templeton Global Strategy
Funds if you:
o Are a qualified investor, and
o Reinvest the money within 365 days of the redemption date.
The Fund's Contingent Deferred Sales Charge will not be waived if a
contingent deferred sales charge applied to the redemption of your Class A
shares of the Global Strategy Funds. The amount of the Global Strategy
Funds' contingent deferred sales charge that applied to your redemption
will be used to buy shares in the Fund, based on the amount of those
proceeds being reinvested, but the Contingency Period will start again.
If you immediately placed your redemption proceeds in a Franklin Templeton
money fund, you may reinvest them as described above. The proceeds must be
reinvested within 365 days from the date they are redeemed from the money
fund.
II. The following paragraph is added at the end of the section "How Do I Buy
Shares?":
For Investors Outside the U.S.
The distribution of this prospectus and the offering of Fund shares may be
limited in many jurisdictions. An investor who wishes to buy shares of the
Fund should determine, or have a broker-dealer determine, the applicable
laws and regulations of the relevant jurisdiction. Investors are
responsible for compliance with tax, currency exchange or other regulations
applicable to redemption and purchase transactions in any jurisdiction to
which they may be subject. Investors should consult appropriate tax and
legal advisors to obtain information on the rules applicable to these
transactions.
