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
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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.
<PAGE>
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.
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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
<PAGE>
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: [email protected]
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
