Fonzie gets a dog, and she escapes when Ralph and Potsie accidentally leave the gate open. Ralph tells Fonzie that the dog, Spunky, was stolen.

After getting a ""D"" on a paper for his investigative reporting class, Richie decides to do a story about the corrupt sanitation department that is forcing Howard to pay a weekly surcharge.

The entire gang goes to Colorado to help Marion's Uncle Ben at his dude ranch. They have to come up with enough money in five days to pay off Ben's neighbor who holds a note on the ranch. They also will have to keep the ranch up and running.

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.

Richie (with Lori Beth and Richie Jr.) and Ralph return from the army. Howard is able to get Richie an interview with The Milwaukee Journal, but Richie doesn't appear to be interested.