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): March 6, 1997 (January
    23, 1997)
    
    
    HUDSON'S GRILL OF AMERICA, INC.
    (Exact name of Registrant as specified in its Charter)
    
    
    California
    (State or other jurisdiction of incorporation)
    
    
    0-13642
    (Commission or File Number)
    
    
    95-3477313
    (IRS Employer Identification Number)
    
    
    16970 Dallas Parkway, Suite 402, Dallas, Texas 75248
    (Address of Principal Executive Offices)
    
    
    Registrant's telephone number, including area code:
    (972) 931-9743
    
    
    
    
    
    Item 5.  Other Events.
    
    Hudson's Grill of America, Inc. (the "Company"), a California corporation 
    based in Dallas, Texas, announced that on January 23, 1997, it closed on
    the sale of its interest in the Hudson's Grill restaurant located in
    Pomona, California.  It sold its interest in the restaurant for $114,200
    and sold its liquor license for $6,000.  The buyer was Burgers of Diamond
    Bar, a California general partnership led by Mr. Mike Miller.  The buyer
    assumed the lease and agreed to lease equipment from the Company for
    $2,500 per month for 96 months.  The company received $6,000 at closing
    and a note for $114,200, payable with interest at the greater of 12% or
    prime plus two percent.  The note is interest only for the first year,
    and then it will be amortized over the next seven years.
    
         The Company also announced that it has settled its case against its 
    former franchisee in Bend, Oregon.  The Company filed suit against the
    former franchisee because of a breach of a prior settlement agreement and
    also because of trademark infringement and unfair trade practices by the
    former franchisee in the operation of a restaurant that resembled a
    Hudson's Grill restaurant.  The former franchisee agreed to pay the
    Company's attorney's fees and the attorney's fees incurred by a third
    party.  In addition, the former franchisee agreed to release funds
    previously tendered back to it and to pay additional funds to the
    Company.  The settlement of released funds, assumed obligations and
    payments to the Company amounted to about $31,800.
    
         The Company additionally announced that Burgers of Diamond Bar had
    agreed to lease the Hudson's Grill restaurants located in
    Whittier, California, and Westlake, California.  Fun Remco had canceled
    its agreement to purchase these restaurants on January 27, 1997.
    
    
    
    Item 7.  Exhibits.
    
         1. Press Release dated March 6, 1997, regarding the completion of the
    sale of the Pomona restaurant and the settlement of the Bend, Oregon
    lawsuit.


    
    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: March 6, 1997
    
                               HUDSON'S GRILL OF AMERICA, INC.
                               Registrant
    
    
                                                             
                               s/s David L. Osborn
                               David L. Osborn
    
    f\sec\970305.O01
    

EX-99

    Hudson's Grill of America, Inc.               For Immediate Release
    16970 Dallas Parkway                          Contact: Thomas A. Sacco
    Suite # 402                                   Telephone: 972-931-9237
    Dallas,Texas 75248-1928                       e-mail: sacco@hudsonsgrill.com
    
    Hudson's Grill Announces the Sale of Its
    Pomona Restaurant and the Settling of Its
    Trademark Infringement Lawsuit
    
    Thursday, March 6, 1997
    
    
    Dallas, TX - The sale of its interest in the Hudson's Grill restaurant 
    located in Pomona, California, was announced today by Hudson's Grill of 
    America, Inc., from its corporate offices, based in Dallas, Texas.  The 
    Company also announced that it had settled its lawsuit against a former 
    franchisee for trademark infringement and unfair trade practices.
    
    David L. Osborn, president of Hudson's Grill of America, released the 
    following information.  "We're pleased to announce that Burgers of Diamond 
    Bar, in which Mr. Mike Miller is a general partner, has bought our
    interest in the Hudson's Grill restaurant in Pomona, California.  This
    same group has entered into an agreement with us to lease two other Hudson's
    Grill restaurants, located in Whittier, California, and Westlake,
    California."
    
    The purchase price of the Pomona restaurant was $120,200 in cash and notes, 
    the execution of an 96 month lease of the equipment in the restaurant,
    and the assumption of the lease for the premises.
    
    Hudson's also announced some of the terms of its settlement with its former 
    franchisee in Bend, Oregon.  The former franchisee agreed to pay for
    Hudson's attorney's fees and the attorney's fees of a third party; to
    release funds formerly tendered back to it; and to pay additional damages
    to Hudson's.  The total amount of the settlement is about $31,800. 
    
    Hudson's Grills are celebrating their 13th year of operation, and the
    Company is publicly traded on NASDAQ under the symbol HDSG.
    
       
         
    
    Exhibit A