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): January 14,
    1997 (December 20, 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:
    (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 December 30, 1996, it signed a franchise agreement with
    DATE, S.A., a corporation doing business in Guatemala.  The
    owners of DATE, S.A., are owners of other restaurants and bars 
    as well as other major businesses in Guatemala.  The new
    franchisee will have exclusive rights to develop Hudson's
    Grill restaurants in Guatemala.  The first location will be in
    Guatemala City and is expected to open in February 1997 in an
    area known as the "Zona Viva", which is a tourist and shopping
    area in Guatemala City.  This is the first international
    franchisee of the Company.  The Company's traditional concept
    will be adapted so that it will be more consistent with local
    values and tastes in Guatemala City.  In light of the new
    Guatemala franchisee, the Company will also pursue trademark 
    protection in Guatemala to protect its proprietary rights.
    
         The Company also announced that on December 20, 1996, it
    settled a lawsuit filed against it by Jordano's, Inc., a
    California liquor distributor, which lawsuit had been
    previously reported in 1996.  Jordano's had alleged that the
    Company was liable for the debt owed it by one of the
    Company's former franchisees.  The Company denied any
    obligation to Jordano's.  The settlement will be paid out over
    the next nine months but will not impact the Company's
    earnings because the Company had previously set aside an
    accounting reserve to cover this contingency.
    
    
    
    Item 7.  Exhibits.
    
         1.Press Release dated December 30, 1996, regarding the
    new Guatemala franchise.
    
         2.Press Release dated January 9, 1997, regarding the
    settlement of the Jordano's 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: January 14, 1997
    
                               HUDSON'S GRILL OF AMERICA, INC.
                               Registrant
    
    
                                                             
                               s/s David L. Osborn
                               David L. Osborn
    
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