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PROSPECTUS SUPPLEMENT
DATED OCTOBER 1, 1996
FRANKLIN TAX-FREE TRUST
(Arizona, Colorado, Connecticut, Indiana, Michigan, New Jersey, Ohio, Oregon,
Pennsylvania, Puerto Rico and High Yield Tax-Free Income Funds)
Dated July 1, 1996
Effective October 1, 1996, the Board, on behalf of the Franklin Connecticut
Tax-Free Income Fund (the "Connecticut Fund"), approved a new investment
management agreement with Franklin Investment Advisory Services, Inc.
("Investment Advisory"), with offices located at 16 South Main Street, Suite
303, Norwalk, Connecticut 06854.
In approving the new agreement, the Board considered that Investment Advisory, a
registered investment advisor, is also a wholly-owned subsidiary of Franklin
Resources, Inc., the parent company of Franklin Advisers, Inc., the previous
investment manager of the Connecticut Fund, and will employ the same individuals
to be responsible for the day-to-day portfolio management of the Connecticut
Fund as the previous manager and that the terms and conditions of the management
services to the Connecticut Fund will remain substantially the same. Franklin
Advisers, Inc. will continue to perform the management services for the other
series.
