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.
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.
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.
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.
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.