GOF P10 04/22

SUPPLEMENT DATED APRIL 1, 2022

TO THE CURRENTLY EFFECTIVE PROSPECTUSES

OF EACH OF THE FUNDS LISTED BELOW

Franklin California Tax-Free Income Fund

Franklin Investors Securities Trust

Franklin Adjustable U.S. Government Securities Fund

Franklin Municipal Securities Trust

Franklin California High Yield Municipal Fund

Franklin New York Tax-Free Income Fund

Franklin New York Tax-Free Trust

Franklin New York Intermediate-Term Tax-Free Income Fund

Franklin Tax-Free Trust

Franklin Alabama Tax-Free Income Fund

Franklin Arizona Tax-Free Income Fund

Franklin Colorado Tax-Free Income Fund

Franklin Connecticut Tax-Free Income Fund

Franklin Georgia Tax-Free Income Fund

Franklin Louisiana Tax-Free Income Fund

Franklin Maryland Tax-Free Income Fund

Franklin Massachusetts Tax-Free Income Fund

Franklin Michigan Tax-Free Income Fund

Franklin Minnesota Tax-Free Income Fund

Franklin Missouri Tax-Free Income Fund

Franklin New Jersey Tax-Free Income Fund

Franklin North Carolina Tax-Free Income Fund

Franklin Ohio Tax-Free Income Fund

Franklin Oregon Tax-Free Income Fund

Franklin Pennsylvania Tax-Free Income Fund

Franklin Virginia Tax-Free Income Fund

Effective April 1, 2022, the prospectuses of the Funds are revised as follows:

I. The following replaces the “Annual Fund Operating Expenses” tables and “Example” in the “Fund Summaries – Fees and Expenses of the Fund” sections of each prospectus:

Franklin Alabama Tax-Free Income Fund

           

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Management fees

0.55%

 

0.55%

 

0.55%

 

0.55%

 

0.55%

Distribution and service (12b-1) fees

0.25%

 

0.10%

 

0.65%

 

None

 

None

Other expenses1

0.11%

 

0.11%

 

0.11%

 

0.10%

 

0.11%

Total annual Fund operating expenses

0.91%

 

0.76%

 

1.31%

 

0.65%

 

0.66%

Fee waiver and/or expense reimbursement1,2

-0.01%

 

-0.01%

 

-0.01%

 

-0.03%

 

-0.01%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement1,2

0.90%

 

0.75%

 

1.30%

 

0.62%

 

0.65%

1.

The transfer agent has contractually agreed to cap transfer agency fees for Class R6 shares of the Fund so that transfer agency fees for that class do not exceed 0.03% until June 30, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

2.

The investment manager has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses (excluding Rule 12b-1 fees; acquired fund fees and expenses and certain nonroutine expenses) for each class of the Fund do not exceed 0.65% until June 30, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The Example reflects adjustments made to the Fund's operating expenses due to the fee waivers and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

          

 

 

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

 

$463

 

$653

 

$859

 

$1,451

Class A1

 

$449

 

$608

 

$781

 

$1,282

Class C

 

$232

 

$413

 

$716

 

$1,467

Class R6

 

$63

 

$204

 

$358

 

$806

Advisor Class

 

$66

 

$209

 

$366

 

$821

If you do not sell your shares:

 

 

 

 

 

 

 

Class C

 

$132

 

$413

 

$716

 

$1,467

 

 

 

 

 

 

 

 

 

1

Franklin Connecticut Tax-Free Income Fund

           

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Management fees

0.56%

 

0.56%

 

0.56%

 

0.56%

 

0.56%

Distribution and service (12b-1) fees

0.25%

 

0.10%

 

0.65%

 

None

 

None

Other expenses1

0.13%

 

0.13%

 

0.13%

 

0.14%

 

0.13%

Total annual Fund operating expenses

0.94%

 

0.79%

 

1.34%

 

0.70%

 

0.69%

Fee waiver and/or expense reimbursement1,2

-0.04%

 

-0.04%

 

-0.04%

 

-0.11%

 

-0.04%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement1,2

0.90%

 

0.75%

 

1.30%

 

0.59%

 

0.65%

1.

The transfer agent has contractually agreed to cap transfer agency fees for Class R6 shares of the Fund so that transfer agency fees for that class do not exceed 0.03% until June 30, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

2.

The investment manager has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses (excluding Rule 12b-1 fees; acquired fund fees and expenses and certain nonroutine expenses) for each class of the Fund do not exceed 0.65% until June 30, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

  

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The Example reflects adjustments made to the Fund's operating expenses due to the fee waivers and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

          

 

 

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

 

$463

 

$659

 

$871

 

$1,482

Class A1

 

$449

 

$614

 

$794

 

$1,313

Class C

 

$232

 

$421

 

$731

 

$1,500

Class R6

 

$60

 

$209

 

$369

 

$839

Advisor Class

 

$60

 

$213

 

$379

 

$860

If you do not sell your shares:

 

 

 

 

 

 

 

Class C

 

$132

 

$421

 

$731

 

$1,500

 

 

 

 

 

 

 

 

 

Franklin Adjustable U.S. Government Securities Fund

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

          

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Management fees

0.50%

 

0.50%

 

0.50%

 

0.50%

 

0.50%

Distribution and service (12b-1) fees

0.25%

 

0.10%

 

0.65%

 

None

 

None

Other expenses1

0.22%

 

0.22%

 

0.22%

 

0.13%

 

0.22%

Total annual Fund operating expenses

0.97%

 

0.82%

 

1.37%

 

0.63%

 

0.72%

Fee waiver and/or expense reimbursement1,2

-0.12%

 

-0.12%

 

-0.12%

 

-0.14%

 

-0.12%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement1,2

0.85%

 

0.70%

 

1.25%

 

0.49%

 

0.60%

1. The transfer agent has contractually agreed to cap transfer agency fees for Class R6 shares for the Fund so that transfer agency fees for that class do not exceed 0.03% until February 28, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the fee waiver and expense limitation.

2. The investment manager has contractually agreed to waive or assume certain expenses so that operating expenses (excluding Rule 12b-1 fees, acquired fund fees and expenses and certain non-routine expenses) for each class of the Fund do not exceed 60% until February 28, 2023. During its term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund's fees and expenses (which would result in lower fees for shareholders).

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The Example reflects adjustments made to the Fund's operating expenses due to the fee waivers and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

2

          

 

 

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

 

$310

 

$516

 

$738

 

$1,378

Class A1

 

$295

 

$469

 

$659

 

$1,206

Class C

 

$227

 

$422

 

$738

 

$1,526

Class R6

 

$50

 

$187

 

$336

 

$772

Advisor Class

 

$61

 

$218

 

$388

 

$883

If you do not sell your shares:

 

 

 

 

 

 

 

Class C

 

$127

 

$422

 

$738

 

$1,526

II.  For all funds except Franklin New York Tax-Free Income Fund, Franklin California High Yield Municipal Fund, Franklin California Tax-Free Income Fund, Franklin New York Intermediate-Term Tax-Free Income Fund and Franklin Adjustable U.S. Government Securities Fund, the following is added to the “Fund Details – Management” section of each prospectus:

Effective April 1, 2022, the investment manager has agreed to waive or limit its fees and to assume as its own certain expenses otherwise payable by the Fund so that total annual Fund operating expenses (i.e., a combination of investment management fees and other expenses, but excluding the Rule 12b-1 fees and acquired fund fees and expenses) for each class of the Fund do not exceed 0.65% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) until June 30, 2023.

III. For Franklin New York Tax-Free Income Fund and Franklin California High Yield Municipal Fund the following added to the “Fund Details – Management” section of each prospectus:

Effective April 1, 2022, the investment manager has agreed to waive or limit its fees and to assume as its own certain expenses otherwise payable by the Fund so that total annual Fund operating expenses (i.e., a combination of investment management fees and other expenses, but excluding the Rule 12b-1 fees and acquired fund fees and expenses) for each class of the Fund do not exceed 0.65% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) until September 30, 2023.

IV. For Franklin California Tax-Free Income Fund, the following is added to the “Fund Details – Management” section of the prospectus:

Effective April 1, 2022, the investment manager has agreed to waive or limit its fees and to assume as its own certain expenses otherwise payable by the Fund so that total annual Fund operating expenses (i.e., a combination of investment management fees and other expenses, but excluding the Rule 12b-1 fees and acquired fund fees and expenses) for each class of the Fund do not exceed 0.65% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) until July 31, 2023.

V. For Franklin New York Intermediate-Term Tax-Free Income Fund the following is added to the “Fund Details – Management” section of the prospectus:

Effective April 1, 2022, the investment manager has agreed to waive or limit its fees and to assume as its own certain expenses otherwise payable by the Fund so that total annual Fund operating expenses (i.e., a combination of investment management fees and other expenses, but excluding the Rule 12b-1 fees and acquired fund fees and expenses) for each class of the Fund do not exceed 0.65% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) until January 31, 2023.

VI. For Franklin Adjustable U.S. Government Securities Fund the following is added to the “Fund Details – Management” section of the prospectus:

Effective April 1, 2022, the investment manager has agreed to waive or limit its fees and to assume as its own certain expenses otherwise payable by the Fund so that total annual Fund operating expenses (i.e., a combination of investment management fees and other expenses, but excluding the Rule 12b-1 fees and acquired fund fees and expenses) for each class of the Fund do not exceed 0.60% (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations and liquidations) until February 28, 2023.

Please keep this supplement with your prospectus for future reference.

3

        
  

SUMMARY PROSPECTUS

   
    
  

FRANKLIN ADJUSTABLE U.S. GOVERNMENT SECURITIES FUND

 
    
    
  

March 1, 2022

as amended April 1, 2022

 
    
  

 
    
     
      
     

Class A

Class A1

Class C

Class R6

Advisor Class

FISAX

FAUGX

FCSCX

FAURX

FAUZX

Before you invest, you may want to review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s prospectus, statement of additional information, reports to shareholders and other information about the Fund online at www.franklintempleton.com/prospectus. You can also get this information at no cost by calling (800) DIAL BEN/342-5236 or by sending an e-mail request to prospectus@franklintempleton.com. The Fund’s prospectus and statement of additional information, both dated March 1, 2022, as may be supplemented, are all incorporated by reference into this Summary Prospectus.

Franklin Adjustable U.S. Government Securities Fund

Investment Goal

High level of current income, while providing lower volatility of principal than a fund that invests in fixed-rate securities.

Fees and Expenses of the Fund

These tables describe the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may qualify for sales charge discounts in Class A if you and your family invest, or agree to invest in the future, at least $100,000 in Franklin Templeton funds. More information about these and other discounts is available from your financial professional and under “Your Account” on page 153 in the Fund's Prospectus and under “Buying and Selling Shares” on page 92 of the Fund’s Statement of Additional Information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in Appendix A - "Intermediary Sales Charge Discounts and Waivers" to the Fund's prospectus.

Please note that the tables and examples below do not reflect any transaction fees that may be charged by financial intermediaries, or commissions that a shareholder may be required to pay directly to its financial intermediary when buying or selling Class R6 or Advisor Class shares.

Shareholder Fees

(fees paid directly from your investment)

           

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Maximum Sales Charge (Load)
Imposed on Purchases (as percentage of offering price)

2.25%

 

2.25%

 

None

 

None

 

None

Maximum Deferred Sales Charge
(Load) (as percentage of the lower of original purchase price or sale proceeds)

None

1 

None

1 

1.00%

 

None

 

None

           

1.

There is a 1% contingent deferred sales charge that applies to investments of $500,000 or more (see "Investment of $500,000 or More" under "Choosing a Share Class") and purchases by certain retirement plans without an initial sales charge on shares sold within 18 months of purchase.

As of June 18, 2014, Class A1 shares are only available to existing Class A1 shareholders. Class A1 shares are not available to new investors. If you are a Class A1 shareholder, you may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Franklin Templeton funds.

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

          

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Management fees

0.50%

 

0.50%

 

0.50%

 

0.50%

 

0.50%

Distribution and service (12b-1) fees

0.25%

 

0.10%

 

0.65%

 

None

 

None

Other expenses1

0.22%

 

0.22%

 

0.22%

 

0.13%

 

0.22%

Total annual Fund operating expenses

0.97%

 

0.82%

 

1.37%

 

0.63%

 

0.72%

Fee waiver and/or expense reimbursement1,2

-0.12%

 

-0.12%

 

-0.12%

 

-0.14%

 

-0.12%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement1,2

0.85%

 

0.70%

 

1.25%

 

0.49%

 

0.60%

1. The transfer agent has contractually agreed to cap transfer agency fees for Class R6 shares for the Fund so that transfer agency fees for that class do not exceed 0.03% until February 28, 2023. During this term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the fee waiver and expense limitation.

2. The investment manager has contractually agreed to waive or assume certain expenses so that operating expenses (excluding Rule 12b-1 fees, acquired fund fees and expenses and certain non-routine expenses) for each class of the Fund do not exceed 60% until February 28, 2023. During its term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund's fees and expenses (which would result in lower fees for shareholders).

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The Example reflects adjustments made to the Fund's operating expenses due to the fee waivers and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

          

 

 

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

 

$310

 

$516

 

$738

 

$1,378

Class A1

 

$295

 

$469

 

$659

 

$1,206

Class C

 

$227

 

$422

 

$738

 

$1,526

Class R6

 

$50

 

$187

 

$336

 

$772

Advisor Class

 

$61

 

$218

 

$388

 

$883

If you do not sell your shares:

 

 

 

 

 

 

 

Class C

 

$127

 

$422

 

$738

 

$1,526

 

 

 

 

 

 

 

 

 

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 68.61% of the average value of its portfolio.

Principal Investment Strategies

Under normal market conditions, the Fund invests at least 80% of its net assets in “adjustable-rate U.S. government mortgage securities.” “Adjustable-rate U.S. government mortgage securities” include adjustable-rate mortgage securities (ARMS) and other mortgage-backed securities, including collateralized mortgage obligations (CMOs), with interest rates that adjust periodically to reflect prevailing market interest rates, which are issued or guaranteed by the U.S. government, its agencies or instrumentalities, including government-sponsored entities.

Mortgage-backed securities represent an interest in a pool of mortgage loans made by banks and other financial institutions to finance purchases of homes, commercial buildings and other real estate. As the underlying mortgage loans are paid off, investors receive periodic principal and interest payments as well as any unscheduled principal prepayments on the underlying mortgage loans. The mortgage-backed

securities purchased by the Fund may include bonds and notes issued or guaranteed by U.S. government-sponsored entities, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) and by the Government National Mortgage Association (Ginnie Mae). The Fund currently focuses on mortgage-backed securities issued or guaranteed by Fannie Mae and Freddie Mac.

Government agency or instrumentality issues have different levels of credit support. Ginnie Mae pass-through mortgage certificates are backed by the full faith and credit of the U.S. government. U.S. government-sponsored entities, such as Fannie Mae and Freddie Mac, may be chartered by Acts of Congress, but their securities are neither issued nor guaranteed by the U.S. government. Although the U.S. government has provided financial support to Fannie Mae and Freddie Mac, no assurance can be given that the U.S. government will continue to do so. Accordingly, securities issued by Fannie Mae and Freddie Mac may involve a greater risk of non-payment of principal and interest. Investors should remember that guarantees of timely repayment of principal and interest do not apply to the market prices and yields of the securities or to the net asset value or performance of the Fund, which will vary with changes in interest rates and other market conditions.

Periodic interest rate adjustments may help keep the prices of ARMS relatively stable when compared with the prices of fixed-rate securities, which generally fall when interest rates rise. As a result, the Fund may participate in increases in interest rates resulting in higher current yields, but with less fluctuation in net asset value than a fund invested in comparable fixed-rate securities. Adjustable-rate securities, however, frequently limit the maximum amount by which the interest rate may change up or down. The Fund, therefore, may not benefit from increases in interest rates if prevailing interest rates exceed a security's maximum allowable periodic or lifetime limits. During periods of falling interest rates, the interest rates on these securities may reset downward, resulting in a lower yield for the Fund.

The Fund may invest up to 20% of its net assets in other securities, including fixed-rate mortgage-backed securities and mortgage-backed securities, including non-agency CMOs, issued by a private entity. The Fund may also invest in direct obligations of the U.S. government or of its agencies, instrumentalities or sponsored enterprises, such as Treasury bills, bonds or notes, and in repurchase agreements collateralized by U.S. government or government agency securities.

Principal Risks

You could lose money by investing in the Fund. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S. government.

Interest Rate When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes.

Prepayment Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.

Adjustable Rate Securities Because changes in interest rates on adjustable rate securities may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on adjustable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.

LIBOR Transition The Fund invests in financial instruments that may have floating or variable rate calculations for payment obligations or financing terms based on the London Interbank Offered Rate (LIBOR), which is the benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It was originally anticipated that LIBOR would be discontinued by the end of 2021 and would cease to be published after that time. Although many LIBOR rates were phased out at the end of 2021 as originally intended, a selection of widely used USD LIBOR rates will continue to be published until June 2023 in order to assist with the transition to an alternative rate. The impact of the discontinuation of LIBOR and the transition to an alternative rate on the Fund's portfolio remains uncertain. There can be no guarantee that financial instruments that transition to an alternative reference rate will retain the same value or liquidity as they would otherwise have had.

Mortgage Securities Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.

Extension   Some debt securities, particularly mortgage-backed securities, are subject to the risk that the debt security’s effective maturity is extended because calls or prepayments are less or slower than anticipated, particularly when interest rates rise. The market value of such security may then decline and become more interest rate sensitive.

Market The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. The market value of a security or other investment may be reduced by market activity or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise.

The current global outbreak of the novel strain of coronavirus, COVID-19, has resulted in market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain the spread of COVID-19 have resulted in global travel restrictions and disruptions of healthcare systems, business operations and supply chains, layoffs, volatility in consumer demand for certain products, defaults and credit ratings downgrades, and other significant economic impacts. The effects of COVID-19 have impacted global economic activity across many industries and may heighten other pre-existing political, social and economic risks, locally or globally. The full impact of the COVID-19 pandemic is unpredictable and may adversely affect the Fund’s performance.

Income The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security.

Credit An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value.

While securities issued by Ginnie Mae are backed by the full faith and credit of the U.S. government, not all securities of the various U.S. government agencies are, including those of Fannie Mae and Freddie Mac. Accordingly, securities issued by Fannie Mae and Freddie Mac may involve a risk of non-payment of principal and interest.

Management The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund's investment manager applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results.

Performance

The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year for Class A shares. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You can obtain updated performance information at franklintempleton.com or by calling (800) DIAL BEN/342-5236.

Sales charges are not reflected in the bar chart, and if those charges were included, returns would be less than those shown.

Class A Annual Total Returns

PerformanceBarChartData(2012:1.42,2013:-0.16,2014:0.65,2015:-0.68,2016:0.09,2017:0,2018:0.77,2019:1.99,2020:1.14,2021:-0.25)

   

Best Quarter:

2020, Q2

2.42%

Worst Quarter:

2020, Q1

-1.51%

Average Annual Total Returns

(figures reflect sales charges)

For periods ended December 31, 2021

           

 

 

1 Year

 

5 Years

 

10 Years

 

Since Inception

 

Franklin Adjustable U.S. Government Securities Fund - Class A

 

 

 

 

 

 

 

 

 

 

Return before taxes

 

-2.46%

 

0.28%

 

0.27%

 

—

 

 

Return after taxes on distributions

 

-2.81%

 

-0.56%

 

-0.43%

 

—

 

 

Return after taxes on distributions and sale of Fund shares

 

-1.45%

 

-0.15%

 

-0.09%

 

—

 

Franklin Adjustable U.S. Government Securities Fund - Class A1

 

-2.44%

 

0.40%

 

0.37%

 

—

 

Franklin Adjustable U.S. Government Securities Fund - Class C

 

-1.76%

 

0.30%

 

0.09%

 

—

 

Franklin Adjustable U.S. Government Securities Fund - Class R6

 

-0.01%

 

1.10%

 

—

 

0.85%

1

Franklin Adjustable U.S. Government Securities Fund - Advisor Class 

 

-0.13%

 

0.96%

 

0.73%

 

—

 

Bloomberg US Government (1-2 Year) Index (index reflects no deduction for fees, expenses or taxes)

 

-0.32%

 

1.50%

 

0.98%

 

—

 

           

1.

Since inception September 20, 2013.

  

Historical performance for Class A1 shares prior to their inception is based on the performance of Class A shares.

The after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for Class A and after-tax returns for other classes will vary.

Investment Manager

Franklin Advisers, Inc. (Advisers)

Portfolio Manager

Paul Varunok
Senior Vice President of Advisers and portfolio manager of the Fund since 2003.

Purchase and Sale of Fund Shares

You may purchase or redeem shares of the Fund on any business day online through our website at franklintempleton.com, by mail (Franklin Templeton Investor Services, P.O. Box 997151, Sacramento, CA 95899-7151), or by telephone at (800) 632-2301. For Class A, A1 and C, the minimum initial purchase for most accounts is $1,000 (or $25 under an automatic investment plan). Class R6 and Advisor Class are only available to certain qualified investors and the minimum initial investment will vary depending on the type of qualified investor, as described under "Your Account — Choosing a Share Class — Qualified Investors — Class R6" and "— Advisor Class" in the Fund's prospectus. There is no minimum investment for subsequent purchases.

Taxes

The Fund’s distributions are generally taxable to you as ordinary income, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case your distributions would generally be taxed when withdrawn from the tax-deferred account.

Payments to Broker-Dealers and
Other Financial Intermediaries

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary's website for more information.

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Franklin Distributors, LLC

One Franklin Parkway

San Mateo, CA 94403-1906

franklintempleton.com

Franklin Adjustable U.S. Government Securities Fund

  
  

Investment Company Act file #811-04986

© 2022 Franklin Templeton. All rights reserved.

10% Total Recycled Fiber 00070381

138 PSUM 04/22

        
  

SUMMARY PROSPECTUS

   
    
  

FRANKLIN ALABAMA TAX-FREE INCOME FUND

 
    
  

Franklin Tax-Free Trust

 
  

July 1, 2021

as amended April 1, 2022

 
    
  

 
    
     
      
     

Class A

Class A1

Class C

Class R6

Advisor Class

FALQX

FRALX

FALEX

FALRX

FALZX

Before you invest, you may want to review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s prospectus, statement of additional information, reports to shareholders and other information about the Fund online at www.franklintempleton.com. You can also get this information at no cost by calling (800) DIAL BEN/342-5236 or by sending an e-mail request to prospectus@ franklintempleton.com. The Fund’s prospectus and statement of additional information, both dated July 1, 2021, as may be supplemented, are all incorporated by reference into this Summary Prospectus.

Investment Goal

To provide investors with as high a level of income exempt from federal income taxes as is consistent with prudent investment management and the preservation of shareholders’ capital. The Fund also tries to provide a maximum level of income exempt from personal income taxes, if any, for resident shareholders of Alabama.

Fees and Expenses of the Fund

These tables describe the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may qualify for sales charge discounts in Class A if you and your family invest, or agree to invest in the future, at least $100,000 in Franklin Templeton funds. More information about these and other discounts is available from your financial professional and under “Your Account” on page 138 in the Fund's Prospectus and under “Buying and Selling Shares” on page 53 of the Fund’s Statement of Additional Information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in Appendix A – "Intermediary Sales Charge Discounts and Waivers" to the Fund’s prospectus.

Please note that the tables and examples below do not reflect any transaction fees that may be charged by financial intermediaries, or commissions that a shareholder may be required to pay directly to its financial intermediary when buying or selling Class R6 or Advisor Class shares.

           

Shareholder Fees

 

 

 

 

 

 

 

 

 

(fees paid directly from your investment)

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor Class

Maximum Sales Charge (Load)
Imposed on Purchases (as percentage
of offering price)

3.75%

 

3.75%

 

None

 

None

 

None

Maximum Deferred Sales Charge
(Load) (as percentage of the lower
of original purchase price or sale
proceeds)

None

1 

None

1 

1.00%

 

None

 

None

1 There is a 1% contingent deferred sales charge that applies to investments of $250,000 or more (see "Investment of $250,000 or More" under "Choosing a Share Class") and purchases by certain retirement plans without an initial sales charge on shares sold within 18 months of purchase.

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

          

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Management fees

0.55%

 

0.55%

 

0.55%

 

0.55%

 

0.55%

Distribution and service (12b-1) fees

0.25%

 

0.10%

 

0.65%

 

None

 

None

Other expenses1

0.11%

 

0.11%

 

0.11%

 

0.10%

 

0.11%

Total annual Fund operating expenses

0.91%

 

0.76%

 

1.31%

 

0.65%

 

0.66%

Fee waiver and/or expense reimbursement1,2

-0.01%

 

-0.01%

 

-0.01%

 

-0.03%

 

-0.01%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement1,2

0.90%

 

0.75%

 

1.30%

 

0.62%

 

0.65%

1 The transfer agent has contractually agreed to cap transfer agency fees for Class R6 shares of the Fund so that transfer agency fees for that class do not exceed 0.03% until June 30, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

2 The investment manager has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses (excluding Rule 12b-1 fees; acquired fund fees and expenses and certain nonroutine expenses) for each class of the Fund do not exceed 0.65% until June 30, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The Example reflects adjustments made to the Fund's operating expenses due to the fee waivers and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

          

 

 

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

 

$463

 

$653

 

$859

 

$1,451

Class A1

 

$449

 

$608

 

$781

 

$1,282

Class C

 

$232

 

$413

 

$716

 

$1,467

Class R6

 

$63

 

$204

 

$358

 

$806

Advisor Class

 

$66

 

$209

 

$366

 

$821

If you do not sell your shares:

 

 

 

 

 

 

 

Class C

 

$132

 

$413

 

$716

 

$1,467

 

 

 

 

 

 

 

 

 

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 24.03% of the average value of its portfolio.

Principal Investment Strategies

Under normal market conditions, the Fund invests at least 80% of its total assets in securities whose interest is free from federal income taxes, including the federal alternative minimum tax. In addition, under normal market conditions, the Fund invests at least 80% of its total assets in securities that pay interest free from the personal income taxes, if any, of Alabama. Although the Fund tries to invest all of its assets in tax-free securities, it is possible that up to 20% of the Fund's total assets may be in securities that pay interest that may be subject to the federal alternative minimum tax and, although not anticipated, in securities that pay interest subject to other federal or state income taxes.

The Fund only buys municipal securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or unrated or short-term rated securities of comparable credit quality).

The Fund also may invest up to 35% of its total assets in municipal securities issued by U.S. territories.

Although the investment manager will search for investments across a large number of municipal securities that finance different types of projects, from time to time, based on economic conditions, the Fund may have significant positions in municipal securities that finance similar types of projects.

The investment manager selects securities that it believes will provide the best balance between risk and return within the Fund’s range of allowable investments and typically uses a buy and hold strategy. This means it generally holds securities in the Fund’s portfolio for income purposes, rather than trading securities for capital gains, although the investment manager may sell a security at any time if it believes it could help the Fund meet its goal.

Principal Risks

You could lose money by investing in the Fund. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S. government.

Interest Rate When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes.

Market The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. The market value of a security or other investment may be reduced by market activity or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise.

The current global outbreak of the novel strain of coronavirus, COVID-19, has resulted in market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain the spread of COVID-19 have resulted in global travel restrictions and disruptions of healthcare systems, business operations and supply chains, layoffs, reduced consumer demand, defaults and credit ratings downgrades, and other significant economic impacts. The effects of COVID-19 have impacted global economic activity across many industries and may heighten other pre-existing political, social and economic risks, locally or globally. The full impact of the COVID-19 pandemic is unpredictable and may adversely affect the Fund’s performance.

Credit An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value.

A change in the credit rating of a municipal bond insurer that insures securities in the Fund’s portfolio may affect the value of the securities it insures, the Fund’s share price and Fund performance. The Fund might also be adversely impacted by the inability of an insurer to meet its insurance obligations.

Alabama The Fund invests predominantly in Alabama municipal securities. Therefore, events in Alabama are likely to affect the Fund’s investment and its performance. These events may include economic or political policy changes, tax base erosion, unfunded pension and healthcare liabilities, constitutional limits on tax increases, budget deficits and other financial difficulties, and changes in the credit ratings assigned to municipal issuers of Alabama. The same is true of events in other states or U.S. territories, to the extent that the Fund has exposure to any other state or territory at any given time.

Focus The Fund may invest more than 25% of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project, or a declining need for the project, would likely affect all similar projects, thereby increasing market risk.

Tax-Exempt Securities Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.

Income The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security.

Prepayment Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.

Liquidity From time to time, the trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs, which may arise or increase in response to a specific economic event or because the investment manager wishes to purchase particular investments or believes that a higher level of liquidity would be

advantageous. Reduced liquidity will also generally lower the value of such securities or other investments. Market prices for such securities or other investments may be relatively volatile.

Management The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund's investment manager applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results.

Performance

The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year for Class A shares. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You can obtain updated performance information at franklintempleton.com or by calling (800) DIAL BEN/342-5236.

Sales charges are not reflected in the bar chart, and if those charges were included, returns would be less than those shown.

Class A Annual Total Returns

PerformanceBarChartData(2011:12.33,2012:7.49,2013:-4.87,2014:10.55,2015:1.21,2016:1.87,2017:2.97,2018:0.59,2019:6.27,2020:4.57)

   

Best Quarter:

2011, Q2

5.23%

Worst Quarter:

2013, Q2

-2.71%

 

As of March 31, 2021, the Fund’s year-to-date return was -0.53%.

        

Average Annual Total Returns

 

 

 

 

 

 

(figures reflect sales charges)

 

 

 

 

 

 

For the periods ended December 31, 2020

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

Franklin Alabama Tax-Free Income Fund - Class A

 

 

 

 

 

 

 

Return Before Taxes

 

0.65%

 

2.45%

 

3.79%

 

Return After Taxes on Distributions

 

0.65%

 

2.45%

 

3.79%

 

Return After Taxes on Distributions and Sale of Fund Shares

 

1.39%

 

2.56%

 

3.74%

Franklin Alabama Tax-Free Income Fund - Class A1

 

0.84%

 

2.51%

 

3.81%

Franklin Alabama Tax-Free Income Fund - Class C

 

3.11%

 

2.71%

 

3.64%

Franklin Alabama Tax-Free Income Fund - Class R6

 

4.86%

 

3.76%

1

—

Franklin Alabama Tax-Free Income Fund - Advisor Class 

 

4.83%

 

3.38%

 

4.25%

Bloomberg Barclays Municipal Bond Index (index reflects no deduction for fees, expenses or taxes)

 

5.21%

 

3.91%

 

4.63%

1 Since inception August 1, 2017.

The figures in the average annual total returns table above reflect the Class A and Class A1 maximum front-end sales charge of 3.75%. Prior to March 1, 2019, Class A and A1 shares were subject to a maximum front-end sales charge of 4.25%. If the maximum front-end sales charge of 4.25% was reflected, performance for Class A and Class A1 in the average annual total returns table would be lower.

Historical performance for Class A shares in the bar chart and table above prior to their inception is based on the performance of Class A1 shares and has been adjusted to reflect differences in Rule 12b-1 fees between classes.

Historical performance for Advisor Class shares prior to their inception is based on the performance of Class A1 shares. Advisor Class performance has been adjusted to reflect differences in sales charges between classes.

The after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns are shown only for Class A and after-tax returns for other classes will vary.

Investment Manager

Franklin Advisers, Inc. (Advisers)

Portfolio Managers

John Wiley

Senior Vice President of Advisers and portfolio manager of the Fund since November 2020.

Christopher Sperry, CFA

Vice President of Advisers and portfolio manager of the Fund since November 2020.

John Bonelli

Vice President of Advisers and portfolio manager of the Fund since 2013.

Michael Conn

Vice President of Advisers and portfolio manager of the Fund since November 2020.

Purchase and Sale of Fund Shares

You may purchase or redeem shares of the Fund on any business day online through our website at franklintempleton.com, by mail (Franklin Templeton Investor Services, P.O. Box 997151, Sacramento, CA 95899-7151), or by telephone at (800) 632-2301. For Class A, A1 and C, the minimum initial purchase for most accounts is $1,000 (or $25 under an automatic investment plan). Class R6 and Advisor Class are only available to certain qualified investors and the minimum initial investment will vary depending on the type of qualified investor, as described under "Your Account — Choosing a Share Class — Qualified Investors — Class R6" and "— Advisor Class" in the Fund's prospectus. There is no minimum investment for subsequent purchases.

Taxes

The Fund’s distributions are primarily exempt from regular federal and state income tax for individual residents of Alabama. A portion of these distributions, however, may be subject to federal alternative minimum tax. The Fund may also make distributions that are taxable to you as ordinary income or capital gains.

Payments to Broker-Dealers and
Other Financial Intermediaries

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary's website for more information.

This page intentionally left blank

  

 
 

Franklin Distributors, LLC

One Franklin Parkway

San Mateo, CA 94403-1906

franklintempleton.com

Franklin Alabama Tax-Free Income Fund

  
  

Investment Company Act file #811-04149

© 2021 Franklin Templeton. All rights reserved.

10% Total Recycled Fiber 00070419

1164 PSUM 04/22

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

        
  

SUMMARY PROSPECTUS

   
    
  

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND

 
    
  

Franklin Tax-Free Trust

 
  

July 1, 2021

as amended April 1, 2022

 
    
  

 
    
     
      
     

Class A

Class A1

Class C

Class R6

Advisor Class

FALQX

FRALX

FALEX

FALRX

FALZX

Before you invest, you may want to review the Fund’s prospectus, which contains more information about the Fund and its risks. You can find the Fund’s prospectus, statement of additional information, reports to shareholders and other information about the Fund online at www.franklintempleton.com. You can also get this information at no cost by calling (800) DIAL BEN®/342-5236 or by sending an e-mail request to prospectus@ franklintempleton.com. The Fund’s prospectus and statement of additional information, both dated July 1, 2021, as may be supplemented, are all incorporated by reference into this Summary Prospectus.

   

franklintempleton.com

Prospectus

1

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

Franklin Connecticut Tax-Free Income Fund

Investment Goal

To provide investors with as high a level of income exempt from federal income taxes and from personal income taxes, if any, for resident shareholders of Connecticut as is consistent with prudent investment management and the preservation of shareholders’ capital.

Fees and Expenses of the Fund

These tables describe the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may qualify for sales charge discounts in Class A if you and your family invest, or agree to invest in the future, at least $100,000 in Franklin Templeton funds. More information about these and other discounts is available from your financial professional and under “Your Account” on page 127 in the Fund's Prospectus and under “Buying and Selling Shares” on page 53 of the Fund’s Statement of Additional Information. In addition, more information about sales charge discounts and waivers for purchases of shares through specific financial intermediaries is set forth in Appendix A – "Intermediary Sales Charge Discounts and Waivers" to the Fund’s prospectus.

Please note that the tables and examples below do not reflect any transaction fees that may be charged by financial intermediaries, or commissions that a shareholder may be required to pay directly to its financial intermediary when buying or selling Class R6 or Advisor Class shares.

Shareholder Fees

(fees paid directly from your investment)

           

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Maximum Sales Charge (Load)
Imposed on Purchases (as percentage of offering price)

3.75%

 

3.75%

 

None

 

None

 

None

Maximum Deferred Sales Charge
(Load) (as percentage of the lower of original purchase price or sale proceeds)

None

1 

None

1 

1.00%

 

None

 

None

           

1.

There is a 1% contingent deferred sales charge that applies to investments of $250,000 or more (see "Investment of $250,000 or More" under "Choosing a Share Class") and purchases by certain retirement plans without an initial sales charge on shares sold within 18 months of purchase.

   

2

Prospectus

franklintempleton.com

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

          

 

Class A

 

Class A1

 

Class C

 

Class R6

 

Advisor
Class

Management fees

0.56%

 

0.56%

 

0.56%

 

0.56%

 

0.56%

Distribution and service (12b-1) fees

0.25%

 

0.10%

 

0.65%

 

None

 

None

Other expenses1

0.13%

 

0.13%

 

0.13%

 

0.14%

 

0.13%

Total annual Fund operating expenses

0.94%

 

0.79%

 

1.34%

 

0.70%

 

0.69%

Fee waiver and/or expense reimbursement1,2

-0.04%

 

-0.04%

 

-0.04%

 

-0.11%

 

-0.04%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement1,2

0.90%

 

0.75%

 

1.30%

 

0.59%

 

0.65%

1. The transfer agent has contractually agreed to cap transfer agency fees for Class R6 shares of the Fund so that transfer agency fees for that class do not exceed 0.03% until June 30, 2023. During the term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

2. The investment manager has contractually agreed to waive or assume certain expenses so that operating expenses (excluding Rule 12b-1 fees, acquired fund fees and expenses and certain non-routine expenses) for each class of the Fund do not exceed 0.65% until June 30, 2023. During its term, this fee waiver and expense reimbursement agreement may not be terminated or amended without approval of the board of trustees except to add series and classes, to reflect the extension of termination dates or to lower the cap on Fund’s fees and expenses (which would result in lower fees for shareholders).

Example

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The Example reflects adjustments made to the Fund's operating expenses due to the fee waivers and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

          

 

 

 

1 Year

 

3 Years

 

5 Years

 

10 Years

Class A

 

$463

 

$659

 

$871

 

$1,482

Class A1

 

$449

 

$614

 

$794

 

$1,313

Class C

 

$232

 

$421

 

$731

 

$1,500

Class R6

 

$60

 

$213

 

$379

 

$860

Advisor Class

 

$66

 

$217

 

$380

 

$855

If you do not sell your shares:

 

 

 

 

 

 

 

Class C

 

$132

 

$421

 

$731

 

$1,500

 

 

 

 

 

 

 

 

 

   

franklintempleton.com

Prospectus

3

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 20.73% of the average value of its portfolio.

Principal Investment Strategies

Under normal market conditions, the Fund invests at least 80% of its net assets in securities whose interest is free from federal income taxes, including the federal alternative minimum tax. In addition, under normal market conditions, the Fund invests at least 80% of its total assets in securities that pay interest free from the personal income taxes, if any, of Connecticut. Although the Fund tries to invest all of its assets in tax-free securities, it is possible that up to 20% of the Fund's net assets may be in securities that pay interest that may be subject to the federal alternative minimum tax and, although not anticipated, in securities that pay interest subject to other federal or state income taxes.

The Fund only buys municipal securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or unrated or short-term rated securities of comparable credit quality).

The Fund also may invest up to 35% of its total assets in municipal securities issued by U.S. territories.

The Fund is a "non-diversified" fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.

Although the investment manager will search for investments across a large number of municipal securities that finance different types of projects, from time to time, based on economic conditions, the Fund may have significant positions in municipal securities that finance similar types of projects.

The investment manager selects securities that it believes will provide the best balance between risk and return within the Fund’s range of allowable investments and typically uses a buy and hold strategy. This means it generally holds securities in the Fund’s portfolio for income purposes, rather than trading securities for capital gains, although the investment manager may sell a security at any time if it believes it could help the Fund meet its goal.

   

4

Prospectus

franklintempleton.com

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

Principal Risks

You could lose money by investing in the Fund. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S. government.

Interest Rate When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes.

Market The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. The market value of a security or other investment may be reduced by market activity or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise.

The current global outbreak of the novel strain of coronavirus, COVID-19, has resulted in market closures and dislocations, extreme volatility, liquidity constraints and increased trading costs. Efforts to contain the spread of COVID-19 have resulted in global travel restrictions and disruptions of healthcare systems, business operations and supply chains, layoffs, reduced consumer demand, defaults and credit ratings downgrades, and other significant economic impacts. The effects of COVID-19 have impacted global economic activity across many industries and may heighten other pre-existing political, social and economic risks, locally or globally. The full impact of the COVID-19 pandemic is unpredictable and may adversely affect the Fund’s performance.

Credit An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value.

A change in the credit rating of a municipal bond insurer that insures securities in the Fund’s portfolio may affect the value of the securities it insures, the Fund’s share price and Fund performance. The Fund might also be adversely impacted by the inability of an insurer to meet its insurance obligations.

Connecticut The Fund invests predominantly in Connecticut municipal securities. Therefore, events in Connecticut are likely to affect the Fund’s investment and its performance. These events may include economic or political policy changes, tax base erosion, unfunded pension and healthcare liabilities, constitutional limits on tax increases, budget deficits and other financial difficulties, and changes in the

   

franklintempleton.com

Prospectus

5

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

credit ratings assigned to municipal issuers of Connecticut. The same is true of events in other states or U.S. territories, to the extent that the Fund has exposure to any other state or territory at any given time.

Focus The Fund may invest more than 25% of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project, or a declining need for the project, would likely affect all similar projects, thereby increasing market risk.

Tax-Exempt Securities Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.

Income The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security.

Prepayment Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.

Liquidity From time to time, the trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs, which may arise or increase in response to a specific economic event or because the investment manager wishes to purchase particular investments or believes that a higher level of liquidity would be advantageous. Reduced liquidity will also generally lower the value of such securities or other investments. Market prices for such securities or other investments may be relatively volatile.

Non-Diversification Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.

   

6

Prospectus

franklintempleton.com

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

Management The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund's investment manager applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results.

Performance

The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year for Class A shares. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You can obtain updated performance information at franklintempleton.com or by calling (800) DIAL BEN/342-5236.

Sales charges are not reflected in the bar chart, and if those charges were included, returns would be less than those shown.

Class A Annual Total Returns

PerformanceBarChartData(2011:10.43,2012:6.27,2013:-6.12,2014:9.49,2015:1.06,2016:1.12,2017:1.93,2018:0.92,2019:4.97,2020:3.86)

   

Best Quarter:

2011, Q2

5.07%

Worst Quarter:

2013, Q2

-3.65%

 

As of March 31, 2021, the Fund’s year-to-date return was -0.39%.
   

franklintempleton.com

Prospectus

7

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

           

Average Annual Total Returns

 

 

 

 

 

 

 

 

 

(figures reflect sales charges)

 

 

 

 

 

 

 

 

 

For periods ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

1 Year

 

5 Years

 

10 Years

 

Since Inception

 

Franklin Connecticut Tax-Free Income Fund - Class A

 

 

 

 

 

 

 

 

 

 

Return before taxes

 

-0.03%

 

1.77%

 

2.90%

 

—

 

 

Return after taxes on distributions

 

-0.03%

 

1.77%

 

2.90%

 

—

 

 

Return after taxes on distributions and sale of Fund shares

 

1.02%

 

2.06%

 

3.02%

 

—

 

Franklin Connecticut Tax-Free Income Fund - Class A1

 

0.09%

 

1.83%

 

2.92%

 

—

 

Franklin Connecticut Tax-Free Income Fund - Class C

 

2.33%

 

2.02%

 

2.74%

 

—

 

Franklin Connecticut Tax-Free Income Fund - Class R6

 

4.16%

 

—

 

—

 

3.28%

1

Franklin Connecticut Tax-Free Income Fund - Advisor Class 

 

4.02%

 

2.71%

 

3.42%

 

—

 

Bloomberg Barclays Municipal Bond Index (index reflects no deduction for fees, expenses or taxes)

 

5.21%

 

3.91%

 

4.63%

 

—

 

           

1.

Since inception August 1, 2017.

  

The figures in the average annual total returns table above reflect the Class A and Class A1 maximum front-end sales charge of 3.75%. Prior to March 1, 2019, Class A and Class A1 were subject to a maximum front-end sales charge of 4.25%. If the maximum front-end sales charge of 4.25% was reflected, performance for Class A and Class A1 in the average annual total returns table would be lower.

Historical performance for Class A shares in the bar chart and table above prior to their inception is based on the performance of Class A1 shares and has been adjusted to reflect differences in Rule 12b-1 fees between classes.

The after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns are shown only for Class A and after-tax returns for other classes will vary.

Investment Manager

Franklin Advisers, Inc. (Advisers)

Portfolio Managers

John Wiley

Senior Vice President of Advisers and portfolio manager of the Fund since November 2020.

   

8

Prospectus

franklintempleton.com

FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

Christopher Sperry, CFA

Vice President of Advisers and portfolio manager of the Fund since November 2020.

John Bonelli

Vice President of Advisers and portfolio manager of the Fund since November 2020.

Michael Conn

Vice President of Advisers and portfolio manager of the Fund since November 2020.

Purchase and Sale of Fund Shares

You may purchase or redeem shares of the Fund on any business day online through our website at franklintempleton.com, by mail (Franklin Templeton Investor Services, P.O. Box 997151, Sacramento, CA 95899-7151), or by telephone at (800) 632-2301. For Class A, A1 and C, the minimum initial purchase for most accounts is $1,000 (or $25 under an automatic investment plan). Class R6 and Advisor Class are only available to certain qualified investors and the minimum initial investment will vary depending on the type of qualified investor, as described under "Your Account — Choosing a Share Class — Qualified Investors — Class R6" and "— Advisor Class" in the Fund's prospectus. There is no minimum investment for subsequent purchases.

Taxes

The Fund’s distributions are primarily exempt from regular federal and state income tax for individual residents of Connecticut. A portion of these distributions, however, may be subject to federal alternative minimum tax. The Fund may also make distributions that are taxable to you as ordinary income or capital gains.

Payments to Broker-Dealers and
Other Financial Intermediaries

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary's website for more information.

   

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Prospectus

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FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
FUND SUMMARIES

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FUND SUMMARIES

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Franklin Distributors, LLC

One Franklin Parkway

San Mateo, CA 94403-1906

franklintempleton.com

Franklin Connecticut Tax-Free Income Fund

  
  

Investment Company Act file #811-04149

© 2021 Franklin Templeton. All rights reserved.

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