Fonzie is shot, presumably by Potsie, during a weekend trip to Potsie's uncle's cabin. Fonzie, Chachi, and Roger each describe their versions of what happened.

Howard feels that Joanie has been seeing too much of Chachi lately, so he offers her her own phone if she agrees not to see Chachi for two weeks. Joanie and Chachi sneak off to a concert in Chicago and have to stay in the same room, the honeymoon suite, at a motel because it is the only one left.

Fonzie is given the job as teacher of auto mechanics at Jefferson High School. He gets frustrated when his students don't pick everything up as quickly as he did when he was a kid.

Lori Beth receives a letter from Richie in which he proposes marriage. She has to go to Greenland for the wedding, but doesn't have the money to make the trip. Marion goes on a show called Dreams Can Come True in which three women tell their stories of tragedy. The winner has their dream come true, and Marion hopes she can win the money for Lori Beth.

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.

Despite Howard's objection, Joanie decides to buy a car because she and Chachi are tired of having to double-date, and Chachi cannot afford to buy his own.

On Christmas Eve, a terrible blizzard traps Howard and Joanie at the hardware store and Fonzie, Potsie, Chachi, Jenny, and Roger at Arnold's.

Fonzie wants to win the ""Teacher of the Year"" award to spite a fellow teacher.

Al announces that he's given up his search for Rosa Coletti, a woman with whom he was involved 20 years ago. However, he receives a letter from his mother saying that she's found Rosa and that she'll be coming to Arnold's next Saturday night.

Chachi tells Fonzie that his motorcycle has seen better days, but Fonzie refuses to junk it. He finally decides to get a new bike after crashing his old one but has to save his money a little longer. Joanie suggests to Chachi that they all pool their money with Fonzie's to surprise him with a new bike for his birthday. Meanwhile, Arnold's has a new cook, but Fonzie's sixth sense tells him that something isn't right about him.

Fonzie comes down with a terrible toothache but refuses to see a dentist. Meanwhile, Howard is upset about Joanie's choice of attire for a wedding she's attending.

After a day of everyone asking favors of him, Fonzie has a nightmare about a mad scientist draining his cool.

Chachi becomes jealous after seeing a kissing scene involving Joanie and another actor during rehearsals for a school musical. Fonzie also considers quitting as director.

After Jenny's date dumps her before a big masquerade ball, Fonzie agrees to take her. They dress as a bride and groom and, as part of a talent portion of the party, have a make-believe wedding. However, since the captain of the boat performed the ceremony, the marriage may be legal. Roger believes they can get the marriage annulled if Jenny agrees to it, but, instead, she comes into Fonzie's apartment carrying suitcases.

Because she's never been to his house or met his mother, Joanie thinks that Chachi is ashamed of her. Fonzie invites the Cunninghams over to the Arcola's for dinner on Chachi's behalf. Fonzie surmizes that Chachi is embarrassed of his mother and uncle and of the fact that they're poor.

Potsie falls behind on his rent and is forced to move back in with his parents. However, after learning that Lori Beth's roommate likes men who live alone, Potsie has to stay in his apartment. He tells Fonzie that he can get quick cash but won't say how.

Chachi discovers a great basketball player who recently transferred to Jefferson High. However, he initially holds back when performing for Roger and, suddenly, changes his mind about being on the team when his father orders him home in the middle of a practice.

Desperate to get Chachi on the school's basketball team, a scout for Eastern Florida University offers him a scholarship and several other superfluous perks - including a cheerleading scholarship for Joanie. Fonzie is extrememly excited for Chachi, but Howard and Roger think the scholarships are too good to be true.

Richie and Lori Beth want to get married, but Lori Beth cannot go to Richie's base until they're already married. Roger suggests that they have a ceremony in which a proxy stands in for Richie because he can't be there in person. Fonzie volunteers to be the proxy.

Marion hurts her back before a big bowling game, but Howard finds a new partner in the lovely Fern Flagg. He had told Marion that she was an old spinster woman. Marion and Fern meet each other, and Marion is furious at Howard for lying to her about Fern's appearance. Meanwhile, Jenny receives a product in the mail called the Ajax Bust Builder.

Fonzie takes his auto shop class to an out-of-town junkyard and meets a waitress at a diner whom he thinks is his mother.

Chachi struggles with an essay on the causes, hardships, and influences of immigration until Fonzie tells him several stories in a series of musical vignettes.