On Christmas Eve, a night which Al wanted to spend at home with his close family and friends, Rico books the band to perform on the Christmas Radio Special. After stopping to pick up a hitchhiker on their way to the studio, their van gets stuck in the snow.

The band is set to audition for a spot on Twist Fever when a woman tells them the show is looking for a band with a gimmick. When a family band is up next, the woman says that they are the type of gimmick the show is looking for. Joanie and Chachi claim that they are a family band with Louisa as their mother and visiting Fonzie as their father. Meanwhile, Al is upset with himself for not making more of an effort at being a true father to Chachi.

After seeing how much in love Louisa's Aunt and Uncle are after 50 years of marriage, Joanie and Chachi decide to elope.

Chachi is convinced that Joanie will leave him when her first love comes back on the scene.

Faced with work to do for other classes, Joanie asks Mario to type her 30-page history paper for her. After he finishes it, Mario accidentally burns it on the kitchen stove. When her teacher hands back the graded papers, he notes that Joanie's and another student's are exactly the same. Meanwhile, Louisa gets an ugly couch, but Al can't bring himself to tell her.

Despite Rico's assurances that it is all part of the act, Joanie is upset over the mingling that occurs between Chachi and several young women after he performs at Al and Louisa's newly opened restaurant in Chicago.

The band has a big audition for a record producer, but Chachi's attitude causes Joanie to decide to attend her nephew's birthday party in Milwaukee instead of singing with the band.

Joanie notices a guy looking at Annette during a performance at Delvecchio's, and she and Chachi introduce Annette and the guy, Wendell. They quickly hit it off and decide to get married within three weeks of their first meeting. Prior to the wedding rehearsal, however, Wendell makes a pass at Joanie.

Joanie and Chachi argue about gender superiority. Chachi believes that, specifically, men are better than women at basketball, so Joanie challenges him to go one-on-one with her female friend who plays on the school's team. Meanwhile, Al faces possible tax evasion charges but swears he has paid them.

Louisa's friend from high school, Vanessa, who is a record producer, comes for a visit and asks the band to play for her. Mario suspects Vanessa is interested in Chachi for more than just his music.