FCF P1 09/18

SUPPLEMENT DATED SEPTEMBER 10, 2018

TO THE PROSPECTUS DATED FEBRUARY 1, 2018

Franklin CUSTODIAN FundS

Franklin Dynatech Fund

Franklin Growth Fund

Franklin Income Fund

Franklin U.S. Government Securities Fund

Franklin Utilities Fund

The prospectus is amended as follows:

I. The Fund’s classes on the cover of the prospectus are replaced with the following:

	Class A	Class A1	Class C	Class R	Class R6	Advisor Class
Franklin Dynatech Fund	FKDNX	—	FDYNX	FDNRX	FDTRX	FDYZX
Franklin Growth Fund	FKGRX	—	FRGSX	FGSRX	FIFRX	FCGAX
Franklin Income Fund	FKIQX	FKINX	FCISX	FISRX	FNCFX	FRIAX
Franklin U.S. Government Securities Fund	FKFSX	FKUSX	FRUGX	FUSRX	FGORX	FUSAX
Franklin Utilities Fund	FKUQX	FKUTX	FRUSX	FRURX	FUFRX	FRUAX

II. The following replaces the “Shareholder Fees” and “Example” tables in the “Fund Summaries – Franklin Dynatech Fund – Fees and Expenses of the Fund” section of the prospectus:

Shareholder Fees

(fees paid directly from your investment)

	Class A¹	Class C²	Class R	Class R6	Advisor Class
Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)	5.50%	None	None	None	None
Maximum Deferred Sales Charge (Load) (as percentage of the lower of original purchase price or sale proceeds)	None	1.00%	None	None	None

1. There is a 1% contingent deferred sales charge that applies to investments of $1 million or more (see "Investments of $1 Million or More – Dynatech and Growth Funds" 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. Effective October 5, 2018, Class C shares that have been held for 10 years or more will convert automatically into Class A shares later in the month of October 2018 and will be subject to Class A shares’ lower Rule 12b-1 fees. Thereafter, Class C shares of the Fund will convert automatically to Class A shares of the Fund on a monthly basis in the month of, or the month following, the 10-year anniversary of the Class C shares’ purchase date. Such conversions will be on the basis of the relative net asset values of the two classes, will not be subject to Class A shares’ sales charges and are not expected to be a taxable event for federal income tax purposes. Certain shares that are invested through retirement plans, omnibus accounts or in certain other instances may not automatically convert if the financial intermediary does not have the ability to track purchases to credit individual shareholders’ holding periods. (See “Your Account – Choosing a Shares Class – Sales Charges – Class C – Automatic Conversion of Class C Shares to Class A Shares After 10-Year Holding Period” for more information.)

Example

	1 Year	3 Years	5 Years	10 Years
Class A	$ 636	$ 820	$ 1,020	$ 1,596
Class C	$ 267	$ 519	$ 896	$ 1,954
Class R	$ 116	$ 364	$ 632	$ 1,397
Class R6	$ 52	$ 166	$ 290	$ 652
Advisor Class	$ 65	$ 207	$ 361	$ 810
If you do not sell your shares:
Class C	$ 167	$ 519	$ 896	$ 1,954

III. The following is added to the “Fund Summaries – Franklin Dynatech Fund – Performance” section of the prospectus:

The figures in the average annual total returns table above reflect the Class A maximum front-end sales charge of 5.75% that was in effect prior to September 10, 2018. Class A shares, however, currently are subject to a maximum front-end sales charge of 5.50% effective on September 10, 2018. If the maximum front-end sales charge of 5.50% was reflected, performance for Class A in the average annual total returns table would be higher.

IV. The following replaces the “Shareholder Fees” and “Example” tables in the “Fund Summaries – Franklin Growth Fund – Fees and Expenses of the Fund” section of the prospectus:

Shareholder Fees

(fees paid directly from your investment)

	Class A¹	Class C²	Class R	Class R6	Advisor Class
Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)	5.50%	None	None	None	None
Maximum Deferred Sales Charge (Load) (as percentage of the lower of original purchase price or sale proceeds)	None	1.00%	None	None	None

Example

	1 Year	3 Years	5 Years	10 Years
Class A	$ 634	$ 814	$ 1,010	$ 1,574
Class C	$ 265	$ 513	$ 886	$ 1,933
Class R	$ 114	$ 358	$ 621	$ 1,374
Class R6	$ 50	$ 159	$ 279	$ 628
Advisor Class	$ 63	$ 201	$ 350	$ 786
If you do not sell your shares:
Class C	$ 165	$ 513	$ 886	$ 1,933

V. The following is added to the “Fund Summaries – Franklin Growth Fund – Performance” section of the prospectus:

VI. The following replaces the first paragraph under the “Fund Summaries – Franklin Income Fund – Fees and Expenses of the Fund” section of the prospectus:

These tables describe the fees and expenses that you may pay if you buy and hold 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 111 in the Fund's Prospectus and under “Buying and Selling Shares” on page 77 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.

VII. The following replaces the “Shareholder Fees,” “Annual Fund Operating Expenses” and “Example” tables in the “Fund Summaries – Franklin Income Fund – Fees and Expenses of the Fund” section of the prospectus:

Shareholder Fees

(fees paid directly from your investment)

	Class A¹	Class A1	Class C²	Class R	Class R6	Advisor Class
Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)	4.25%	4.25%	None	None	None	None
Maximum Deferred Sales Charge (Load) (as percentage of the lower of original purchase price or sale proceeds)	None³	None³	1.00%	None	None	None

1. The Fund publicly began offering Class A shares (formerly Class M shares) on September 10, 2018.

2. Effective October 5, 2018, Class C shares that have been held for 10 years or more will convert automatically into Class A shares later in the month of October 2018 and will be subject to Class A shares’ lower Rule 12b-1 fees. Thereafter, Class C shares of the Fund will convert automatically to Class A shares of the Fund on a monthly basis in the month of, or the month following, the 10-year anniversary of the Class C shares’ purchase date. Such conversions will be on the basis of the relative net asset values of the two classes, will not be subject to Class A shares’ sales charges and are not expected to be a taxable event for federal income tax purposes. Certain shares that are invested through retirement plans, omnibus accounts or in certain other instances may not automatically convert if the financial intermediary does not have the ability to track purchases to credit individual shareholders’ holding periods. (See “Your Account – Choosing a Shares Class – Sales Charges - Class C – Automatic Conversion of Class C Shares to Class A Shares After 10-Year Holding Period” for more information.)

3. There is a 0.75% contingent deferred sales charge that applies to investments of $500,000 or more (see "Investments of $500,000 or More – Income, U.S. Government Securities and Utilities Funds" under "Choosing a Share Class") and purchases by certain retirement plans without an initial sales charge on shares sold within 18 months of purchase.

On September 10, 2018, all outstanding Class A shares were renamed Class A1 shares and all outstanding Class M shares were renamed Class A shares. As of September 7, 2018, Class A1 shares are no longer 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 A¹	Class A1	Class C	Class R	Class R6	Advisor Class
Management fees	0.37%	0.37%	0.37%	0.37%	0.37%	0.37%
Distribution and service (12b-1) fees	0.25%	0.15%	0.65%	0.50%	None	None
Other expenses	0.10%	0.10%	0.10%	0.10%	0.04%	0.10%
Acquired fund fees and expenses²	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Total annual Fund operating expenses²	0.73%	0.63%	1.13%	0.98%	0.42%	0.48%
Fee waiver and/or expense reimbursement³	-0.01%	-0.01%	-0.01%	-0.01%	-0.02%	-0.01%
Total annual Fund operating expenses after fee waiver and/or expense reimbursement^{2, 3}	0.72%	0.62%	1.12%	0.97%	0.40%	0.47%

1. The Fund publicly began offering Class A shares on September 10, 2018. Other expenses for Class A are based on estimated amounts for the current fiscal year.

2. Total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights, which reflect the operating expenses of the Fund and do not include acquired fund fees and expenses.

3. The investment manager has contractually agreed in advance to reduce its fee as a result of the Fund’s investment in other Franklin Templeton funds (acquired fund) for the next 12-month period. In addition, the transfer agent has contractually agreed to waive or limit its transfer agency fees for Class R6 shares of the Fund so that transfer agency fees for that Class do not exceed 0.01% until January 31, 2019. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the time periods set forth above.

Example

	1 Year	3 Years	5 Years	10 Years
Class A	$ 495	$ 647	$ 813	$ 1,292
Class A1	$ 486	$ 617	$ 760	$ 1,177
Class C	$ 214	$ 358	$ 621	$ 1,374
Class R	$ 99	$ 311	$ 541	$ 1,201
Class R6	$ 41	$ 133	$ 233	$ 528
Advisor Class	$ 48	$ 153	$ 268	$ 603
If you do not sell your shares:
Class C	$ 114	$ 358	$ 621	$ 1,374

VIII. In the “Fund Summaries – Franklin Income Fund – Performance” section of the prospectus, the “Average Annual Total Returns” table and the three paragraphs following the table are replaced with the following:

Average Annual Total Returns
(figures reflect sales charges)

For the periods ended December 31, 2017

	1 Year	5 Years	10 Years
Franklin Income Fund - Class A (formerly Class M)
Return Before Taxes	3.91%	5.76%	5.08%
Return After Taxes on Distributions	2.00%	3.78%	2.96%
Return After Taxes on Distributions and Sale of Fund Shares	2.52%	3.69%	3.11%
Franklin Income Fund - Class A1 (formerly Class A)	3.91%	5.76%	5.08%
Franklin Income Fund - Class C	7.22%	6.17%	5.02%
Franklin Income Fund - Class R	8.18%	6.33%	5.18%
Franklin Income Fund - Class R6	8.67%	5.80%¹	—
Franklin Income Fund - Advisor Class	8.62%	6.80%	5.71%
S&P 500® Index (index reflects no deduction for fees, expenses or taxes)	21.83%	15.79%	8.50%
Bloomberg Barclays U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes)	3.54%	2.10%	4.00%
Lipper Mixed-Asset Target Allocation Moderate Funds Classification Average (index reflects no deduction for fees, expenses or taxes)	12.75%	7.29%	4.95%

1. Since inception May 1, 2013.

No one index is representative of the Fund's portfolio.

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 not been adjusted to reflect differences in Rule 12b-1 fees between classes. If Class A shares’ performance was recalculated to reflect Class A shares’ Rule 12b-1 fees, the performance shown would be lower.

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.

IX. The “Fund Summaries – Franklin Income Fund – Purchase and Sale of Fund Shares” section is replaced with the following:

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, C and R, 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.

X. The following replaces the first paragraph under the “Fund Summaries – Franklin U.S. Government Securities Fund – Fees and Expenses of the Fund” section of the prospectus:

XI. The following replaces the “Shareholder Fees,” “Annual Fund Operating Expenses” and “Example” tables in the “Fund Summaries – Franklin U.S. Government Securities Fund – Fees and Expenses of the Fund” section of the prospectus:

Shareholder Fees

(fees paid directly from your investment)

	Class A¹	Class A1	Class C²	Class R	Class R6	Advisor Class
Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)	4.25%	4.25%	None	None	None	None
Maximum Deferred Sales Charge (Load) (as percentage of the lower of original purchase price or sale proceeds)	None³	None³	1.00%	None	None	None

1. The Fund publicly began offering Class A shares (formerly Class M shares) on September 10, 2018.

2. Effective October 5, 2018, Class C shares that have been held for 10 years or more will convert automatically into Class A shares later in the month of October 2018 and will be subject to Class A shares’ lower Rule 12b-1 fees. Thereafter, Class C shares of the Fund will convert automatically to Class A shares of the Fund on a monthly basis in the month of, or the month following, the 10-year anniversary of the Class C shares’ purchase date. Such conversions will be on the basis of the relative net asset values of the two classes, will not be subject to Class A shares’ sales charges and are not expected to be a taxable event for federal income tax purposes. Certain shares that are invested through retirement plans, omnibus accounts or in certain other instances may not automatically convert if the financial intermediary does not have the ability to track purchases to credit individual shareholders’ holding periods. (See “Your Account – Choosing a Shares Class – Sales Charges - Class C – Automatic Conversion of Class C Shares to Class A Shares After 10-Year Holding Period” for more information.)

Annual Fund Operating Expenses

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

	Class A¹	Class A1	Class C	Class R	Class R6	Advisor Class
Management fees	0.45%	0.45%	0.45%	0.45%	0.45%	0.45%
Distribution and service (12b-1) fees²	0.25%	0.15%	0.65%	0.50%	None	None
Other expenses³	0.17%	0.17%	0.17%	0.17%	0.05%	0.17%
Total annual Fund operating expenses	0.87%	0.77%	1.27%	1.12%	0.50%	0.62%

1. The Fund publicly began offering Class A shares on September 10, 2018. Other expenses for Class A are based on estimated amounts for the current fiscal year.

2. Class R distribution and service (12b-1) fees have been restated to reflect the current fiscal year's distribution and service (12b-1) fees.

3. Other expenses of the Fund have been restated to exclude non-recurring period expenses and for Class R6 shares, to reflect current fiscal year expenses. If non-recurring prior period expenses were included in the table above, the amounts stated would have been greater. Consequently, the total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Example

	1 Year	3 Years	5 Years	10 Years
Class A	$ 510	$ 691	$ 887	$ 1,452
Class A1	$ 500	$ 661	$ 835	$ 1,339
Class C	$ 229	$ 403	$ 697	$ 1,534
Class R	$ 114	$ 356	$ 617	$ 1,363
Class R6	$ 51	$ 160	$ 280	$ 628
Advisor Class	$ 63	$ 199	$ 346	$ 774
If you do not sell your shares:
Class C	$ 129	$ 403	$ 697	$ 1,534

XII. In the “Fund Summaries – Franklin U.S. Government Securities Fund – Performance” section of the prospectus, the “Average Annual Total Returns” table and the three paragraphs following the table are replaced with the following:

Average Annual Total Returns
(figures reflect sales charges)

For the periods ended December 31, 2017

	1 Year	5 Years	10 Years
Franklin U.S. Government Securities Fund - Class A (formerly Class M)
Return Before Taxes	-3.60%	0.11%	2.62%
Return After Taxes on Distributions	-4.86%	-1.30%	1.15%
Return After Taxes on Distributions and Sale of Fund Shares	-2.04%	-0.55%	1.42%
Franklin U.S. Government Securities Fund - Class A1 (formerly Class A)	-3.60%	0.11%	2.62%
Franklin U.S. Government Securities Fund - Class C	-0.73%	0.48%	2.56%
Franklin U.S. Government Securities Fund - Class R	0.39%	0.63%	2.71%
Franklin U.S. Government Securities Fund - Class R6	1.04%	1.27%¹	—
Franklin U.S. Government Securities Fund - Advisor Class	0.90%	1.13%	3.22%
Bloomberg Barclays U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes)	1.14%	0.92%	2.70%
Lipper GNMA Funds Classification Average (index reflects no deduction for fees, expenses or taxes)	1.05%	1.03%	3.42%

1. Since inception May 1, 2013.

No one index is representative of the Fund's portfolio.

XIII. The “Fund Summaries – Franklin U.S. Government Securities Fund – Purchase and Sale of Fund Shares” section is replaced with the following:

Purchase and Sale of Fund Shares

XIV. The following replaces the first paragraph under the “Fund Summaries – Franklin Utilities Fund – Fees and Expenses of the Fund” section of the prospectus:

XV. The following replaces the “Shareholder Fees,” “Annual Fund Operating Expenses” and “Example” tables in the “Fund Summaries – Franklin Utilities Fund – Fees and Expenses of the Fund” section of the prospectus:

Shareholder Fees

(fees paid directly from your investment)

	Class A¹	Class A1	Class C²	Class R	Class R6	Advisor Class
Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)	4.25%	4.25%	None	None	None	None
Maximum Deferred Sales Charge (Load) (as percentage of the lower of original purchase price or sale proceeds)	None³	None³	1.00%	None	None	None

1. The Fund publicly began offering Class A shares (formerly Class M shares) on September 10, 2018.

2. Effective October 5, 2018, Class C shares that have been held for 10 years or more will convert automatically into Class A shares later in the month of October 2018 and will be subject to Class A shares’ lower Rule 12b-1 fees. Thereafter, Class C shares of the Fund will convert automatically to Class A shares of the Fund on a monthly basis in the month of, or the month following, the 10-year anniversary of the Class C shares’ purchase date. Such conversions will be on the basis of the relative net asset values of the two classes, will not be subject to Class A shares’ sales charges and are not expected to be a taxable event for federal income tax purposes. Certain shares that are invested through retirement plans, omnibus accounts or in certain other instances may not automatically convert if the financial intermediary does not have the ability to track purchases to credit individual shareholders’ holding periods. (See “Your Account – Choosing a Shares Class – Sales Charges - Class C – Automatic Conversion of Class C Shares to Class A Shares After 10-Year Holding Period” for more information.)

Annual Fund Operating Expenses

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

	Class A¹	Class A1	Class C	Class R	Class R6	Advisor Class
Management fees	0.46%	0.46%	0.46%	0.46%	0.46%	0.46%
Distribution and service (12b-1) fees	0.25%	0.15%	0.65%	0.50%	None	None
Other expenses²	0.12%	0.12%	0.12%	0.12%	0.03%	0.12%
Total annual Fund operating expenses²	0.83%	0.73%	1.23%	1.08%	0.49%	0.58%

1. The Fund publicly began offering Class A shares on September 10, 2018. Other expenses for Class A are based on estimated amounts for the current fiscal year.

2. Other expenses of the Fund have been restated to exclude non-recurring prior period expenses and for Class R6 shares, to reflect current fiscal year expenses. If the non-recurring prior period expenses were included in the table above, the amounts stated would have been greater. Consequently, the total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Example

	1 Year	3 Years	5 Years	10 Years
Class A	$ 506	$ 679	$ 866	$ 1,407
Class A1	$ 496	$ 648	$ 814	$ 1,293
Class C	$ 225	$ 390	$ 676	$ 1,489
Class R	$ 110	$ 343	$ 595	$ 1,317
Class R6	$ 50	$ 157	$ 274	$ 616
Advisor Class	$ 59	$ 186	$ 324	$ 726
If you do not sell your shares:
Class C	$ 125	$ 390	$ 676	$ 1,489

XVI. In the “Fund Summaries – Franklin Utilities Fund – Performance” section of the prospectus, the “Average Annual Total Returns” table and the three paragraphs following the table are replaced with the following:

Average Annual Total Returns
(figures reflect sales charges)

For the periods ended December 31, 2017

	1 Year	5 Years	10 Years
Franklin Utilities Fund - Class A (formerly Class M)
Return Before Taxes	5.88%	10.46%	6.50%
Return After Taxes on Distributions	4.82%	9.30%	5.61%
Return After Taxes on Distributions and Sale of Fund Shares	4.25%	8.14%	5.11%
Franklin Utilities Fund - Class A1 (formerly Class A)	5.88%	10.46%	6.50%
Franklin Utilities Fund - Class C	9.02%	10.86%	6.42%
Franklin Utilities Fund - Class R	10.23%	11.04%	6.59%
Franklin Utilities Fund - Class R6	10.88%	8.88%¹	—
Franklin Utilities Fund - Advisor Class	10.76%	11.60%	7.12%
S&P 500^® Utilities Index (index reflects no deduction for fees, expenses or taxes)	12.11%	12.62%	6.31%
S&P 500® Index (index reflects no deduction for fees, expenses or taxes)	21.83%	15.79%	8.50%

1. Since inception May 1, 2013.

No one index is representative of the Fund's portfolio.

XVII. The “Fund Summaries – Franklin Utilities Fund – Purchase and Sale of Fund Shares” section is replaced with the following:

Purchase and Sale of Fund Shares

XVIII. The first paragraph and chart under the “Your Account – Choosing a Share Class” section of the prospectus are replaced with the following:

Each class has its own sales charge and expense structure, allowing you to choose the class that best meets your situation. Some share classes may not be offered by certain financial intermediaries. Your financial intermediary or investment representative (financial advisor) can help you decide which class is best for you. Investors may purchase Class C shares only for Fund accounts on which they have appointed an investment representative (financial advisor) of record. Investors who have not appointed an investment representative (financial advisor) to existing Class C share Fund accounts may not make additional purchases to those accounts but may exchange their shares for shares of a Franklin Templeton fund that offers Class C shares. Dividend and capital gain distributions may continue to be reinvested in existing Class C share Fund accounts. These provisions do not apply to Employer Sponsored Retirement Plans.

Class A	Class C	Class R	Class R6	Advisor Class
Initial sales charge of 5.50% or less (Dynatech Fund and Growth Fund) or 4.25% or less (Income Fund, Utilities Fund and U.S. Government Fund)	No initial sales charge	No initial sales charge	See "Qualified Investors - Class R6" below	See "Qualified Investors - Advisor Class" below
Deferred sales charge of 1% on purchases of $1 million or more sold within 18 months Dynatech Fund and Growth Fund) and 0.75% on purchases of $500,000 or more sold within 18 months (Income Fund, Utilities Fund and U.S. Government Fund)	Deferred sales charge of 1% on shares you sell within 12 months	Deferred sales charge is not applicable
Lower annual expenses than Class C and Class R due to lower distribution fees	Higher annual expenses than Class A and Class R due to higher distribution fees. Automatic conversion to Class A shares after approximately ten years, reducing future annual expenses.	Higher annual expenses than Class A due to higher distribution fees (lower than Class C). No conversion to Class A shares, so annual expenses do not decrease.

The Income, U.S. Government and Utilities Funds publicly began offering Class A shares on September 10, 2018.

Class A1 shares are closed to new investors effective at the close of market on September 7, 2018. Existing investors who had an open and funded account as of that date will be able to continue to invest in Class A1 shares of the Fund through reinvestment of dividends, exchanges and additional purchases after such date. Employer sponsored retirement plans, benefit plans, or discretionary allocation programs that have Class A1 shares of a Fund available to participants or clients on or before September 7, 2018, may continue to open accounts for new participants in such share class and purchase additional shares in existing participant accounts.

XIX. The heading “Class A, M, C & R” under the first table of the “Your Account – Choosing a Share Class” section is replaced with “Class A, A1, C & R.”

XX. The “Sales Charges – Class A & M” heading and charts under the “Your Account – Choosing a Share Class” section of the prospectus are replaced with the following:

Sales Charges – Class A & A1

when you invest this amount	the sales charge makes up this % of the offering price¹	which equals this % of your net investment¹
Dynatech and Growth Funds
Under $50,000	5.50%	5.82%
$50,000 but under $100,000	4.50%	4.71%
$100,000 but under $250,000	3.50%	3.63%
$250,000 but under $500,000	2.50%	2.56%
$500,000 but under $1 million	2.00%	2.04%
$1 million or more	0.00%	0.00%
Income, U.S. Government Securities, and Utilities Funds
Under $100,000	4.25%	4.44%
$100,000 but under $250,000	3.25%	3.36%
$250,000 but under $500,000	2.25%	2.30%
$500,000 or more	0.00%	0.00%

1. The dollar amount of the sales charge is the difference between the offering price of the shares purchased (which factors in the applicable sales charge in this table) and the net asset value of those shares. Since the offering price is calculated to two decimal places using standard rounding criteria, the number of shares purchased and the dollar amount of the sales charge as a percentage of the offering price and of your net investment may be higher or lower depending on whether there was a downward or upward rounding.

XXI. Under the “Your Account – Choosing a Share Class – Sales Charges – Class A & A1 – Sales Charge Reductions” section of the prospectus, all references to “Class M” are removed and all references to “Class A” are replaced with “Class A/A1.”

XXII. The “Your Account – Choosing a Share Class – Sales Charges – Class A & A1 – Sales Charge Waivers for Class A Shares “ is replaced with the following:

Sales Charge Waivers

Class A and Class A1 shares may be purchased without an initial sales charge or contingent deferred sales charge (CDSC) by certain investors. If you would like information about available sales charge waivers, call your investment representative or call Shareholder Services at (800) 632-2301.

XXIII. The “Your Account – Choosing a Share Class – Sales Charges – Class A & A1 – Sales Charge Waivers for Class M Shares” section is removed in its entirety.

XXIV. Under the “Your Account – Choosing a Shares Class – Sales Charges - Class A & A1 – Sales Charge Waivers – Waivers for certain investors” section of the prospectus, all references to “Class M” are removed, all references to “Class A” are replaced with “Class A/A1” and the following is added to the bullet point list:

• Class C shareholders whose shares are converted to Class A shares after 10 years under the Class C shares’ conversion feature.

XXV. The following replaces the “Your Account – Choosing a Shares Class – Sales Charges – Class A & A1 – Investments of $1 Million or More” section:

Investments of $1 Million or More – Dynatech and Growth Funds

If you invest $1 million or more, either as a lump sum or through our cumulative quantity discount or letter of intent programs, you can buy Class A shares without an initial sales charge. However, there is a 1% CDSC for funds that have a maximum initial sales charge of 5.50%. The CDSC is assessed on any shares you sell within 18 months of purchase. The way we calculate the CDSC is the same for each class (please see "Contingent Deferred Sales Charge (CDSC) - Class A, A1 & C").

Investments of $500,000 or More – Income, U.S. Government Securities and Utilities Funds

If you invest $500,000 or more, either as a lump sum or through our cumulative quantity discount or letter of intent programs, you can buy Class A & A1 shares without an initial sales charge. However, there is a 0.75% CDSC on any shares you sell within 18 months of purchase. This CDSC will change to 1.00% on or after March 10, 2020. The way we calculate the CDSC is the same for each class (please see “Contingent Deferred Sales Charge (CDSC) - Class A, A1 & C”).

XXVI. The following replaces the “Your Account – Choosing a Share Class – Sales Charges – Class A & A1 – Distribution and Service (12b-1) Fees” section:

Distribution and Service (12b-1) Fees

Class A and Class A1 have a distribution plan, sometimes known as a Rule 12b‑1 plan that allows the Fund to pay distribution fees of up to 0.25% and 0.15% per year to those who sell and distribute Class A and Class A1 shares, respectively, and provide other services to shareholders. Because these fees are paid out of Class A’s and Class A1’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.

We calculate the amount of these fees over a 12-month period that may differ from the Fund's fiscal year. Therefore, the amount shown from time to time in the Fund's fee table (which is based upon the Fund's fiscal year) may differ from the amount set forth in the Rule 12b-1 plan due to timing differences.

XXVII. The following replaces the second sentence under “Your Account – Choosing a Shares Class – Sales Charges –Class C” heading:

We place any investment of $1 million or more (with respect to Dynatech and Growth Funds) and $500,000 or more (with respect to Income Fund, U.S. Government Securities Fund and Utilities Fund) in Class A shares, since Class A's annual expenses are lower.

XXVIII. All references to the “Contingent Deferred Sales Charge (CDSC) - Class A, M & C” heading are replaced with “Contingent Deferred Sales Charge (CDSC) - Class A, A1 & C.”

XXIX. The “Notice of Automatic Conversion of Class C Shares to Class A Shares after 10-Year Holding Period” section under the “Your Account” section of the prospectus is removed and the following is added after the “Your Account – Choosing a Shares Class – Sales Charges – Class C – Distribution and Service (12b-1) Fees” section:

Automatic Conversion of Class C Shares to Class A Shares After 10-Year Holding Period

Effective on October 5, 2018, Class C shares’ conversion feature will become effective. The conversion feature provides that Class C shares that have been held for 10 years or more will automatically convert into Class A shares and will be subject to Class A shares’ lower Rule 12b-1 fees (the “Conversion Feature”). On or about October 19, 2018, Class C shares of the Fund that have been outstanding for 10 years or more will automatically convert to Class A shares of the Fund on the basis of the relative net asset values of the two classes. Thereafter, Class C shares of the Fund will convert automatically to Class A shares of the Fund on a monthly basis in the month of, or the month following, the 10-year anniversary of the Class C (or Class C1) shares’ purchase date. The monthly conversion date is expected to occur around the middle of every month and generally falls on a Friday.

Terms of the Conversion Feature. Class C shares that automatically convert to Class A shares of the Fund will convert on the basis of the relative net asset values of the two classes. Shareholders will not pay a sales charge, including a CDSC, upon the conversion of their Class C shares to Class A shares pursuant to the Conversion Feature. The automatic conversion of the Fund’s Class C shares into Class A shares after the 10-year holding period is not expected to be a taxable event for federal income tax purposes. Shareholders should consult with their tax advisor regarding the state and local tax consequences of such conversions.

If you previously owned Class C1 shares of the Fund, the time you held such shares will count towards the 10-year period for automatic conversion to Class A shares. Class C (or Class C1) shares of the Fund acquired through automatic reinvestment of dividends or distributions will convert to Class A shares of the Fund on the conversion date pro rata with the converting Class C shares of the Fund that were not acquired through reinvestment of dividends or distributions.

Class C shares held through a financial intermediary in an omnibus account will be automatically converted into Class A shares only if the intermediary can document that the shareholder has met the required holding period. In certain circumstances, when shares are invested through retirement plans, omnibus accounts, and in certain other instances, the Fund and its agents may not have transparency into how long a shareholder has held Class C (or Class C1) shares for purposes of determining whether such Class C shares are eligible for automatic conversion into Class A shares and the financial intermediary may not have the ability to track purchases to credit individual shareholders’ holding periods. This primarily occurs when shares are invested through certain record keepers for group retirement plans, where the intermediary cannot track share aging at the participant level. In these circumstances, the Fund will not be able to automatically convert Class C shares into Class A shares as described above. In order to determine eligibility for conversion in these circumstances, it is the responsibility of the shareholder or their financial intermediary to notify the Fund that the shareholder is eligible for the conversion of Class C shares to Class A shares, and the shareholder or their financial intermediary may be required to maintain and provide the Fund with records that substantiate the holding period of Class C (and, if applicable, Class C1) shares. In these circumstances, it is the financial intermediary’s (and not the Fund’s) responsibility to keep records and to ensure that the shareholder is credited with the proper holding period. Please consult with your financial intermediary about your shares’ eligibility for this conversion feature.

Also effective October 5, 2018, new accounts or plans may not be eligible to purchase Class C shares of the Fund if it is determined that the intermediary cannot track shareholder holding periods to determine whether a shareholder’s Class C shares are eligible for conversion to Class A shares. Accounts or plans (and their successor, related and affiliated plans) that have Class C (or Class C1) shares of the Fund available to participants on or before October 5, 2018, may continue to open accounts for new participants in that share class and purchase additional shares in existing participant accounts. The Fund has no responsibility for overseeing, monitoring or implementing a financial intermediary’s process for determining whether a shareholder meets the required holding period for conversion.

A financial intermediary may sponsor and/or control accounts, programs or platforms that impose a different conversion schedule or different eligibility requirements for the conversion of Class C shares into Class A shares. In these cases, Class C shareholders may convert to Class A shares under the policies of the financial intermediary and the conversion may be structured as an exchange of Class C shares for Class A shares of the Fund. Financial intermediaries will be responsible for making such exchanges in those circumstances. Please consult with your financial intermediary if you have any questions regarding your shares’ conversion from Class C shares to Class A shares.

XXX. Under the “Your Account – Choosing a Share Class – Reinstatement Privilege” section of the prospectus, all references to “Class M” are removed, all references to “Class A” are replaced with “Class A/A1” and the following replaces the first sentence in that section:

If you sell any class of shares of a Franklin Templeton Investments fund, you may reinvest all or a portion of the proceeds from that sale within 90 days within the same share class (or share class equivalent if the share class you redeemed from is closed to new investors) without an initial sales charge.

XXXI. The section “Your Account – Choosing a Share Class –Qualified Investors – Class M” of the prospectus is removed in its entirety.

XXXII. The following are added to the bullet point list under the “Your Account – Choosing a Share Class –Qualified Investors – Class R6” section of the prospectus:

· Intermediaries that execute an addendum to their selling agreement acknowledging that they are acting exclusively as agents of their clients in transacting in Class R6 shares.

· Advisory Fee Programs. A registered broker-dealer, investment advisor, trust company, bank, or other financial intermediary (referred to as a “Sponsor”) that has an agreement with Distributors authorizing the sale of Fund shares and that acquires shares of the Fund for its clients in connection with a comprehensive fee or other advisory fee arrangement for which the client pays the Sponsor a fee for investment advisory services. No minimum initial investment.

XXXIII. Under the section “Your Account – Choosing a Share Class – Waivers for Exchanges between Classes of the Same Fund” of the prospectus, all references to “Class M” are removed.

XXXIV. The heading “Minimum Investments – Class A, M, C & R” under the “Your Account – Buying Shares” heading is replaced with “Minimum Investments – Class A, A1, C & R.”

XXXV. The sub-heading “Class A, M, C & R” under the section “Your Account – Exchanging Shares – Exchange Privilege” is replaced with “Class A, A1, C & R.”

XXXVI. The following is added to the “Your Account – Exchanging Shares – Exchange Privilege” section:

Exchange Effects on Class C Conversion Feature. Effective October 5, 2018, if you exchange your Class C shares for the same class of shares of another Franklin Templeton fund, the time your shares are held in the initial Fund will count towards the 10-year period for automatic conversion to Class A shares.

XXXVII. The heading and first paragraph under the section “Your Account – Account Policies – Calculating Share Price – Class A, M & C” of the prospectus are replaced with the following:

Class A, A1 & C

When you buy shares, you pay the "offering price" for the shares. The "offering price" is determined by dividing the NAV per share by an amount equal to 1 minus the sales charge applicable to the purchase (expressed in decimals), calculated to two decimal places using standard rounding criteria. The number of Fund shares you will be issued will equal the amount invested divided by the applicable offering price for those shares, calculated to three decimal places using standard rounding criteria. For example, if the NAV per share is $10.25 and the applicable sales charge for the purchase is 5.50%, the offering price would be calculated as follows: 10.25 divided by 1.00 minus 0.055 [10.25/0.945] equals 10.582011, which, when rounded to two decimal points, equals 10.58. The offering price per share would be $10.58.

XXXVIII. The sub-heading “Class A, M, C & R” under the section “Your Account – Account Policies – Dealer Compensation” is replaced with “Class A, A1, C & R.”

XXXIX. The following replaces the charts under the “Your Account – Account Policies – Dealer Compensation – Class A, A1, C & R” section of the prospectus:

Dynatech and Growth Funds	Class A	Class C	Class R
Commission (%)	—	1.00¹	—
Investment under $50,000	5.00	—	—
$50,000 but under $100,000	4.00	—	—
$100,000 but under $250,000	3.00	—	—
$250,000 but under $500,000	2.25	—	—
$500,000 but under $1 million	1.75	—	—
$1 million or more	up to 1.00	—	—
12b-1 fee to dealer	0.25²	1.00³	0.50

Income, Utilities and U.S. Government Securities Funds
	Class A	Class A1	Class C	Class R
Commission (%)	—	—	1.00¹	—
Under $100,000	4.00%	4.00%	—	—
$100,000 but under $250,000	3.00%	3.00%	—	—
$250,000 but under $500,000	2.25%	2.25%	—	—
$500,000 or more	Up to 1.00%	Up to 1.00%	—	—
12b-1 fee to dealer	0.25²	0.15²	0.65³	0.50

1. Commission includes advance of the first year's 12b-1 service fee of 0.25% (0.15% for Class A1 shares of Income, Utilities and U.S. Government Securities Funds). Distributors may pay a prepaid commission. However, Distributors does not pay a prepaid commission on any purchases by Employer Sponsored Retirement Plans.

2. For purchases at NAV where Distributors paid a prepaid commission, dealers may start to receive the 12b-1 fee in the 13th month after purchase. For purchases at NAV where Distributors did not pay a prepaid commission, dealers may start to receive the 12b-1 fee at the time of purchase.

3. Dealers may be eligible to receive up to 0.25% (0.15% for Class A1 shares of Income, Utilities and U.S. Government Securities Funds) at the time of purchase and may be eligible to receive 1.00% for DynaTech and Growth Funds and 0.65% for Income, Utilities and U.S. Government Securities Funds starting in the 13th month. During the first 12 months, the full 12b-1 fee will be paid to Distributors to partially offset the commission and the prepaid service fee paid at the time of purchase. For purchases at NAV where Distributors did not pay a prepaid commission, dealers may start to receive the 12b-1 fee at the time of purchase. After approximately 10 years, Class C shares convert to Class A shares and dealers may then be eligible to receive the 12b-1 fee applicable to Class A.

Please keep this supplement with your prospectus for future reference.

FCF SA1 09/18

SUPPLEMENT DATED SEPTEMBER 10, 2018

TO THE STATEMENT OF ADDITIONAL INFORMATION

DATED FEBRUARY 1, 2018

Franklin CUSTODIAN FundS

Franklin Dynatech Fund

Franklin Growth Fund

Franklin Income Fund

Franklin U.S. Government Securities Fund

Franklin Utilities Fund

The Statement of Additional Information (“SAI”) is amended as follows:

I. The Fund’s classes on the cover of the SAI are replaced with the following:

	Class A	Class A1	Class C	Class R	Class R6	Advisor Class
Franklin Dynatech Fund	FKDNX	—	FDYNX	FDNRX	FDTRX	FDYZX
Franklin Growth Fund	FKGRX	—	FRGSX	FGSRX	FIFRX	FCGAX
Franklin Income Fund	FKIQX	FKINX	FCISX	FISRX	FNCFX	FRIAX
Franklin U.S. Government Securities Fund	FKFSX	FKUSX	FRUGX	FUSRX	FGORX	FUSAX
Franklin Utilities Fund	FKUQX	FKUTX	FRUSX	FRURX	FUFRX	FRUAX

II. The following is added to the “Organization, Voting Rights and Principal Holders” section of the SAI:

On September 10, 2018, all outstanding Class A shares were renamed Class A1 shares and all outstanding Class M shares were renamed Class A shares.

III. In addition, in the “Organization, Voting Rights and Principal Holders” section of the SAI, all existing references to “Class A” are replaced with “Class A1” and all existing references to “Class M” are replaced with “Class A.”

IV. In the “Buying and Selling Shares” section of the SAI, all references to “Class M” are removed and all references to “Class A” are replaced with “Class A/A1.”

V. The following replaces the first paragraph under “Buying and Selling shares – Initial sales charges:”

For DynaTech and Growth Funds, the maximum initial sales charge is 5.50% for Class A. For Income, Utilities and U.S. Government Securities Funds, the maximum initial sales charge is 4.25% for Class A/A1. There is no initial sales charge for Class C, Class R, Class R6 and Advisor Class.

VI. The following replaces the second paragraph under “Buying and Selling shares – Initial sales charges – Financial intermediary compensation:”

Distributors may pay the following commissions to financial intermediaries who initiate and are responsible for purchases of Class A/A1 shares in the following amounts:

Amount of Investment	For Funds with an initial sales charge of 5.50% (%)	For Funds with an initial sales charge of 4.25% (%)	For Funds with an initial sales charge of 2.25% (%)
Under $50,000	5.00	4.00	2.00
$50,000 but under $100,000	4.00	4.00	2.00
$100,000 but under $250,000	3.00	3.00	1.75
$250,000 but under $500,000	2.25	2.25	1.25
$500,000 but under $1 million	1.75	1.00	1.00
$1 million but under $4 million	1.00	1.00	1.00
$4 million but under $10 million	1.00	1.00	1.00
$10 million but under $50 million	0.50	0.50	0.50
$50 million or more	0.25	0.25	0.25

Consistent with the provisions and limitations set forth in its Class A/A1 Rule 12b-1 distribution plan, the Fund may reimburse Distributors for the cost of these commission payments.