UNITED STATES
                       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)  OCTOBER  18,  2005

                                 PIZZA INN, INC.
             (Exact name of registrant as specified in its charter)

          MISSOURI                    0-12919               47-0654575
   (State or other jurisdiction of incorporation) (Commission File Number) (IRS
                          Employer Identification No.)

                 3551 PLANO PARKWAY, THE COLONY, TEXAS     75056
          (Address of principal executive offices)          (Zip Code)

Registrant's  telephone  number,  including  area  code  (469)  384-5000

                                 NOT APPLICABLE
          (Former name or former address, if changed since last report)

Check  the  appropriate  box  below  if  the  Form  8-K  filing  is  intended to
simultaneously  satisfy the filing obligation of the registrant under any of the
following  provisions  (see  General  Instruction  A.2.  below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

[ ] Soliciting material pursuant to  Rule  14a-12 under the Exchange Act (17 CFR
240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act  (17  CFR  240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act  (17  CFR  240.13e-4(c))


ITEM  2.04     TRIGGERING  EVENTS THAT ACCELERATE OR INCREASE A DIRECT FINANCIAL
OBLIGATION  OR  AN  OBLIGATION  UNDER  AND  OFF-BALANCE  SHEET  ARRANGEMENT


     On October 18, 2005, Pizza Inn, Inc. ("Company") provided written notice to
Wells  Fargo  Bank, N.A. ("Wells Fargo") that the Company believes it has failed
to  comply with certain financial ratio covenants contained in the Third Amended
and  Restated  Loan Agreement between the Company and the Bank dated January 22,
2003  (as amended, the "Loan Agreement") as of the close of the Company's fiscal
quarter  on  September  25, 2005.  As a result, the Company believes an Event of
Default  (as  defined  in  the  Loan  Agreement)  exists.

     Upon  the  occurrence  of  an Event of Default Wells Fargo may elect, among
other  remedies,  to  terminate  the  Revolving Credit Commitment under the Loan
Agreement,  or  to  declare  all outstanding principal of and accrued and unpaid
interest  on  the Company's obligations under the Loan Agreement immediately due
and  payable.  The  Company  has  requested  that Wells Fargo agree to waive the
Event  of  Default.  However,  Wells  Fargo  is  not  obligated  under  the Loan
Agreement  to  grant  such a waiver.  As of October 24, 2005 Wells Fargo has not
exercised any of the rights or remedies available to it under the Loan Agreement
in  these  circumstances.



                                   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.

                              Pizza  Inn,  Inc.

Date:  October  24,  2005               By: /s/ Shawn M. Preator
                              Shawn  M.  Preator,  Chief  Financial  Officer