<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff">

<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>UNITED STATES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>FORM 8-K</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>CURRENT REPORT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Date of Report (Date of earliest event reported):  June 5, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>FRANKLIN RESOURCES, INC.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="617" style=' margin-left:14.25pt;border-collapse:collapse'>
    <tr >
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Delaware</font></b></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>001-09318</font></b></p> </td>
        <td width="92" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>13-2670991</font></b></p> </td>
        <td  width="49">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td  colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(State&nbsp;or&nbsp;other&nbsp;jurisdiction&nbsp;</font></p> </td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Commission&nbsp;File&nbsp;Number)&nbsp;&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(IRS&nbsp;Employer&nbsp;Identification&nbsp;No.)</font></p> </td> </tr>
    <tr >
        <td  width="27">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>of&nbsp;incorporation)</font></p> </td>
        <td   colspan="6">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="32" ></td>

        <td width="20" ></td>

        <td width="110" ></td>

        <td width="86" ></td>

        <td width="53" ></td>

        <td width="182" ></td>

        <td width="73" ></td>

        <td width="107" ></td>

        <td width="57" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="567" style=' border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>One</font></b><font size=2>&nbsp;</font><b><font size=2>Franklin</font></b><font size=2>&nbsp;</font><b><font size=2>Parkway,</font></b><font size=2>&nbsp;</font><b><font size=2>San</font></b><font size=2>&nbsp;</font><b><font size=2>Mateo,</font></b><font size=2>&nbsp;</font><b><font size=2>California</font></b><font size=2>&nbsp;&nbsp;</font></p> </td>
        <td width="59" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>94403</font></b></p> </td>
        <td  width="12">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="19">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="469" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Address&nbsp;of&nbsp;principal&nbsp;executive&nbsp;offices)&nbsp;&nbsp;</font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Zip&nbsp;Code)</font></p> </td> </tr>
    <tr>
        <td width="22" ></td>

        <td width="548" ></td>

        <td width="9" ></td>

        <td width="68" ></td>

        <td width="14" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Registrant&#146;s telephone number, including area code: (650) 312-3000</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2> (Former name or former address, if changed since last report.)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="638" style=' border-collapse:collapse'>
    <tr>
        <td width="31" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2><font face=Wingdings>o</font></font></p></td>
        <td width="607" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p></td> </tr>
    <tr>
        <td width="31" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2><font face=Wingdings>o</font></font></p></td>
        <td width="607" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p></td> </tr>
    <tr>
        <td width="31" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2><font face=Wingdings>o</font></font></p></td>
        <td width="607" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p></td> </tr>
    <tr>
        <td width="31" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2><font face=Wingdings>o</font></font></p></td>
        <td width="607" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-bottom:6.0pt'><font size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="475" style=' border-collapse:collapse'>
    <tr>
        <td width="122" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1.02</font></b></p> </td>
        <td width="353" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Termination of a Material Definitive Agreement.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>In accordance with the Indenture, dated as of May 11, 2001 (the &#147;Indenture&#148;), between Franklin Resources, Inc. (the &#147;Company&#148;) and The Bank of New York (the &#147;Bank&#148;), the Company redeemed on June 5, 2006 all of its outstanding Liquid Yield Option &#153; Notes due 2031 (Zero Coupon-Senior) (the &#147;LYONs&#148;) for cash in the aggregate amount of $360,431.82.  Because the Company paid all sums payable under the Indenture in connection with its redemption of the LYONs, the Indenture ceased, by its terms, to be of any further effect on June 5, 2006.  The Company did not incur any material early termination penalties in connection with its termination of the Indenture.  The Bank also serves as the Company&#146;s transfer agent, registrar and dividend disbursing agent with respect to the Company&#146;s common stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="295" style=' border-collapse:collapse'>
    <tr>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 7.01</font></b></p> </td>
        <td width="199" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Regulation FD Disclosure.  </font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Company issued a press release dated June 5, 2006 regarding the completion of the redemption of the LYONs.  A copy of that press release is attached hereto as Exhibit 99.1.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="354" style=' border-collapse:collapse'>
    <tr>
        <td width="96" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 9.01</font></b></p> </td>
        <td width="258" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financial Statements and Exhibits.  </font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="124" style=' margin-left:1.0in;border-collapse:collapse'>
    <tr>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td width="76" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exhibits.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="523" style=' margin-left:1.0in;border-collapse:collapse'>
    <tr>
        <td width="151" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><u><font SIZE=2>EXHIBIT NO.</font></u></p></td>
        <td width="372" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><u><font SIZE=2>DESCRIPTION</font></u></p></td> </tr>
    <tr>
        <td width="151" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><font size=2>99.1</font></p></td>
        <td width="372" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><font size=2>Press Release, dated June 5, 2006, issued by Franklin Resources, Inc.</font></p></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>SIGNATURES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="619" style=' border-collapse:collapse'>
    <tr>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p><font size=1>&nbsp;</font></p></td>
        <td width="300" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p ><font SIZE=2>FRANKLIN RESOURCES, INC.</font></p></td> </tr>
    <tr>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p><font size=1>&nbsp;</font></p></td>
        <td width="300" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p><font size=1>&nbsp;</font></p></td> </tr>
    <tr>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p><font size=1>&nbsp;</font></p></td>
        <td width="300" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p><font size=1>&nbsp;</font></p></td> </tr>
    <tr>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:1.0pt'><font size=2>Date: June 5, 2006</font></p></td>
        <td width="300" valign=top style='border-bottom:solid black .5pt; padding:0in 5.4pt 0in 5.4pt'>
            <p ><font size=2>/s/ Barbara J. Green</font></p></td> </tr>
    <tr>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p><font size=1>&nbsp;</font></p></td>
        <td width="300" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p ><font size=2>Name:  Barbara J. Green</font></p></td> </tr>
    <tr>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p><font size=1>&nbsp;</font></p></td>
        <td width="300" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p ><font size=2>Title:  Vice President, Deputy General</font><br> <font size=2>           Counsel and Secretary</font></p></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>EXHIBIT INDEX</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="619" style=' border-collapse:collapse'>
    <tr>
        <td width="151" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><u><font SIZE=2>EXHIBIT NO.</font></u></p></td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><u><font SIZE=2>DESCRIPTION</font></u></p></td> </tr>
    <tr>
        <td width="151" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><font size=2>99.1</font></p></td>
        <td width="468" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left: 0in'><font size=2>Press Release, dated June 5, 2006, issued by Franklin Resources, Inc.</font></p></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


</div>
</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "form8k_060506.htm", "secsgml_size_bytes": 19816}]
{"company-data": {"conformed-name": "FRANKLIN RESOURCES INC", "cik": "0000038777", "assigned-sic": "6282", "irs-number": "132670991", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09318", "film-number": "06887015"}, "business-address": {"street1": "ONE FRANKLIN PARKWAY", "street2": "BUILDING 920", "city": "SAN MATEO", "state": "CA", "zip": "94403", "phone": "650-312-2000"}, "mail-address": {"street1": "FRANKLIN RESOURCES INC", "street2": "ONE FRANKLIN PARKWAY", "city": "SAN MATEO", "state": "CA", "zip": "94403"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  June 5, 2006
FRANKLIN RESOURCES, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-09318
13-2670991
(State or other jurisdiction
(Commission File Number)
(IRS Employer Identification No.)
of incorporation)
One
Franklin
Parkway,
San
Mateo,
California
94403
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (650) 312-3000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.02
Termination of a Material Definitive Agreement.
In accordance with the Indenture, dated as of May 11, 2001 (the "Indenture"), between Franklin Resources, Inc. (the "Company") and The Bank of New York (the "Bank"), the Company redeemed on June 5, 2006 all of its outstanding Liquid Yield Option ™ Notes due 2031 (Zero Coupon-Senior) (the "LYONs") for cash in the aggregate amount of $360,431.82.  Because the Company paid all sums payable under the Indenture in connection with its redemption of the LYONs, the Indenture ceased, by its terms, to be of any further effect on June 5, 2006.  The Company did not incur any material early termination penalties in connection with its termination of the Indenture.  The Bank also serves as the Company's transfer agent, registrar and dividend disbursing agent with respect to the Company's common stock.
Item 7.01
Regulation FD Disclosure.
The Company issued a press release dated June 5, 2006 regarding the completion of the redemption of the LYONs.  A copy of that press release is attached hereto as Exhibit 99.1.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits.
EXHIBIT NO.
DESCRIPTION
99.1
Press Release, dated June 5, 2006, issued by Franklin Resources, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FRANKLIN RESOURCES, INC.
Date: June 5, 2006
/s/ Barbara J. Green
Name:  Barbara J. Green
Title:  Vice President, Deputy General
Counsel and Secretary
EXHIBIT INDEX
EXHIBIT NO.
DESCRIPTION
99.1
Press Release, dated June 5, 2006, issued by Franklin Resources, Inc.