FRANKLIN RESOURCES INC - Director's Dealing 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: FRANKLIN RESOURCES INC (BEN)
CIK: 0000038777
Period of Report: 2006-08-31

Reporting Person: LUSK JOHN M (EVP-Portfolio Operations)

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-08-31	Common Stock, par value $.10	M	11253	$36.3000	Acquired	29493.1596	Direct
2006-08-31	Common Stock, par value $.10	S	11253	$98.0500	Disposed	18240.1596	Direct
2006-08-31	Common Stock, par value $.10	M	818	$31.6800	Acquired	19058.1596	Direct
2006-08-31	Common Stock, par value $.10	S	818	$98.0732	Disposed	18240.1596	Direct

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-08-31	Employee Stock Option (Right to Buy)	$31.6800	M	818	Disposed	2007-09-28	Common Stock, par value $.10 (818.0000)	Direct
2006-08-31	Employee Stock Option (Right to Buy)	$36.3000	M	11253	Disposed	2011-11-19	Common Stock, par value $.10 (11253.0000)	Direct

Security	Shares	Ownership
Common Stock, par value $.10	397.5140	Indirect

F1: Of the amount of securities beneficially owned, 11,550 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 June 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 15, 1999.

F5: This report reflects the exercise of options orginally granted on November 19, 2001.