SUPPLEMENT TO THE CLASS I AND CLASS II
STATEMENT OF ADDITIONAL INFORMATION
TEMPLETON FUNDS, INC.
TEMPLETON FOREIGN FUND
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 "LETTER OF INTENT - CLASS I" is amended to remove
the reference to Class II shares.
III. The discussion under "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"
pursuant to Rule 12b-1 under the 1940 Act, with respect to each
Fund's Class I and Class II shares.
January 1, 1997
