8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 6, 2006 (May 26, 2006)

HUDSON'S GRILL INTERNATIONAL, INC.

(Exact name of Registrant as specified in its Charter)

Texas

(State or other jurisdiction of incorporation)

333-94797

(Commission or File Number)

75-2738727

(IRS Employer Identification Number)

16970 Dallas Parkway, Suite 402, Dallas, Texas 75248

(Address of Principal Executive Offices)

Issuer's telephone number, including area code:

(972) 931-9237

Section 8 - Other Events

Item 8.01 Other Events.

Hudson's Grill International, Inc. (the "Company"), a Texas corporation based in Dallas, Texas, announced the signing on May 26, 2006, of a new franchise agreement with Service Solutions of Oshkosh, Inc., a Wisconsin corporation owned by Jim and Lisa Stabile. The Stabiles also own the franchise in Appleton, Wisconsin. Jim Stabile is the Company's Midwest representative, and this will be the third franchise with which Mr. Stabile has been associated. Mr. Stabile will be president of the franchisee, and the agreement is guaranteed by Mr. and Mrs. Stabile. Mr. Stabile will train the staff for the new franchisee, which will pay a 4% royalty rate instead of a $15,000 up-front franchise fee and 2% royalty paid by franchisees who are developing their third franchise. The new Hudson's Grill restaurant will be managed by Matt Kohlman, who has worked with Mr. Stabile in Appleton.

The new restaurant will be located at 1051 S. Washburn Street, Oshkosh, Wisconsin. The site will require some renovation, but because it has been a restaurant, those renovations should be done quickly. The franchisee plans to open the new Hudson's Grill in early July.

The Company has also organized a new subsidiary, HGI-Oshkosh LLC, a Texas limited liability company. It plans to buy the property at 1051 S. Washburn, Oshkosh, Wisconsin. Closing is currently set for June 9, 2006. On June 3, 2006, HGI-Oshkosh LLC and Service Solutions of Oshkosh, Inc., signed a 20 year lease on the Oshkosh property; the lease will commence upon the closing on the purchase of the property.

Additionally, the Company announced that the Hudson's Grill restaurant located in San Luis Obispo, California, closed recently, and that Hornblowers, a restaurant in Ventura, California, which owed the Company on a note receivable that had previously been written down to approximately $26,000, also closed. At this time the Company does not anticipate any appreciable recovery on the Hornblowers note and will write off the note during the second quarter.

Section 9 - Financial Statements and Exhibits

Item 9.01(c) Exhibits.

1. Press Release dated June 6, 2006, about signing a new franchise for Oshkosh, Wisconsin, and the purchase of a building to lease to the new franchise.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: June 6, 2006

HUDSON'S GRILL INTERNATIONAL, INC.

s/s Robert W. Fischer

Robert W. Fischer, Director

f\sec\060606.o01

EX-99

Hudson's Grill International, Inc.	For Immediate Release
16970 Dallas Parkway	Contact: Robert Fischer
Suite 402	Telephone: 214-361-7301
Dallas, Texas 75248-1928	e-mail: getinfo@hudsonsgrill.com

Hudson's Grill Announces the Signing of a

New Franchise in Oshkosh, Wisconsin

Tuesday, June 6, 2006

Dallas, TX - Hudson's Grill International, Inc., based in Dallas, Texas, announced today that on May 26, 2006, the company signed a franchise agreement with Service Solutions of Oshkosh, Inc., a Wisconsin corporation formed to open a new Hudson's Classic Grill in Oshkosh, Wisconsin. Service Solutions of Oshkosh, Inc., is owned by Jim and Lisa Stabile, who also own a franchise in Appleton, Wisconsin. Mr. Stabile is the Midwest representative for Hudson's Grill International.

This will be the third Hudson's Grill restaurant with which Mr. Stabile has been associated. It will be located at 1051 S. Washburn Street, Oshkosh, Wisconsin. The property has been used recently as a restaurant. The franchisee anticipates opening the new restaurant in early July after renovating it.

Hudson's Grill International, Inc., plans to purchase the property located at 1051 S. Washburn, Oshkosh, Wisconsin, and then lease it to its new franchisee for 20 years. Closing for the purchase is currently set for June 9, 2006.

The company also announced that the Hudson's Grill restaurant in San Luis Obispo, California, recently closed and that Hornblowers, a restaurant in Ventura, California, that was obligated to the company on a note receivable, also closed. The company does not anticipate any recovery from the closed restaurants.

Hudson's Grill International is a public company; the company's class A common shares are currently being quoted and traded over the counter on the bulletin board under the NASD symbol HGIIA.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995.

"This press release may contain forward looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms or comparable terms. These statement are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in the Company's filings with the SEC."