Joanie and Chachi agree to work towards a common goal with their squabbling band members after Fonzie gets them a chance at a record contract; but what will they do when the record company agent tells them that the contract is only for the two of them and not the rest of the band?

The Fonz keeps his cool after a clerical error lands him and his 4-F knee in an Army reserves training camp just before little Heather's birthday; but he doesn't know that his commanding officer is someone he knows...and hates...all too well, and who believes that he finally has Fonzie right where he's always wanted him.