FRANKLIN RESOURCES INC — Director's Dealing 2006

Nov 2, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: FRANKLIN RESOURCES INC (BEN)
CIK: 0000038777
Period of Report: 2006-10-31

Reporting Person: GIBSON HOLLY E (Vice President, Corp Comm)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-10-31	Common Stock, par value $.10	M	6156	$37.2700	Acquired	13199.7510	Direct
2006-10-31	Common Stock, par value $.10	S	6156	$114.3000	Disposed	7043.7510	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-10-31	Employee Stock Options (Right to Buy)	$37.2700	M	6156	Disposed	2010-11-16	Common Stock, par value $.10 (6156.0000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock, par value $.10	285.4850	Indirect

Footnotes

F1: Of the amount of securities beneficially owned, 2,051 shares represent unvested awards of restricted stock shares.

F2: Reporting person holds shares in Franklin Templeton Profit Sharing 401(k) Plan. Information is based on a plan statement as of September 15, 2006.

F3: Reflects adjustment in connection with the special cash dividend paid by Franklin Resources, Inc. on April 15, 2005.

F4: This report reflects the exercise of options orginally granted on November 16, 2000.