Roger Phillips, Marion's nephew, comes to Milwaukee to become an English teacher and the basketball coach at Jefferson High School. He gets off on the wrong foot with Fonzie after he inadvertently empties his locker, insults him, and crashes into his motorcycle.

Joanie prepares some home movies to send to Richie. She mentions that she and Chachi have had their problems over the summer. In the movies, Lori Beth announces that she's going to have a baby, Al's mother visits for the entire summer, Howard is consumed with Braves baseball, and Fonzie and his former gang, the Falcons, get ready to settle old scores with a rival gang.

Fonzie's Falcons and their rival gang, the War Mongers, attempt to settle their old scores with a game of softball. The outcome is disputed, so they end up rumbling. Marion confronts Howard about his anxiety over becomming a grandfather, and Chachi continues to try to make up with Joanie.

Roger seeks Fonzie's advice regarding his love life, Joanie and Chachi write a song for their band, Potsie tries to get into the Leopard Lodge, and Marion is the lead in her theater group's musical.