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):  July 25,
1996 (July 17, 1996)


                 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:
(214) 931-9743




Item 5.  Other Events.

     Hudson's Grill of America, Inc. (the "Company"), a
California corporation based in Dallas, Texas, announced that
on July 17, 1996, the sale of its Hornblowers restaurant in
Ventura's Harbor in Ventura, California, had closed.  Kian
Farzadam, an individual who has been cojoint venturer of the
restaurant for several years, purchased the restaurant. 
Hornblowers has been owned by Hudson's or operated as a joint
venture with the Company for many years; however, the
restaurant uses a theme that is different from the Hudson's
Grills franchised by the Company.

     The purchase price for Hornblowers was $300,000, of which
$6,000 was paid in cash and $294,000 was paid in the form of
a secured promissory note.  The note is payable over 48
months, and the interest rate is nine percent or prime plus
two percent, whichever is greater.  As part of the sale, the
buyer has assumed all liabilities and taxes owed by the joint
venture that has operated the restaurant since 1993.  The
Buyer has also assumed the obligations of the lease for the
premises where Hornblowers is located.



Item 7.  Exhibits.

     1.     Press Release dated July 25, 1996, regarding the
sale of Hornblowers to Kian Farzadam.



                           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:  July 25, 1996

                           HUDSON'S GRILL OF AMERICA, INC.
                           Registrant


                           s/s David L. Osborn
                           David L. Osborn

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