TEMPLETON FUNDS, INC.
TEMPLETON FOREIGN FUND
SUPPLEMENT TO THE CLASS I AND CLASS II
STATEMENT OF ADDITIONAL INFORMATION ("SAI")
SAI dated January 1, 1997
I. As of January 1, 1997 Foreign Fund offers a third class of shares, designated
"Advisor Class." This SAI describes the Class I and Class II shares of Foreign
Fund and World Fund.
All Fund shares outstanding before the offering of Advisor Class shares will
retain their previous rights and privileges.
Class I, Class II and Advisor Class shares differ as to sales charges, expenses
and services. Different fees and expenses will affect performance. Foreign
Fund's Advisor Class shares are described in a separate prospectus and SAI
relating only to that class. For more information concerning Advisor Class,
contact your investment representative or Distributors.
II. The discussion under "HOW DO I BUY, SELL AND EXCHANGE SHARES? - LETTER
OF INTENT" is amended by replacing the fifth sentence of the first paragraph
with the following text:
Your holdings in the Franklin Templeton Funds, acquired more than 90
days before the Letter is filed, will be counted towards completion
of the Letter but will not be entitled to a retroactive downward
adjustment in the sales charge.
III. The discussion under "THE FUNDS' UNDERWRITER - THE RULE 12B-1 PLANS"
is amended by replacing the first paragraph with the following text:
The Company has adopted a distribution plan or "Rule 12b-1 plan" with
respect to each Fund's Class I and Class II shares pursuant to Rule
12b-1 of the 1940 Act.
January 17, 1997
