Julio has moved out of his house and Fred and Lamont decide to buy it and turn it into a boarding house and call it The Sanford Arms. To get enough money for the project, Fred and Lamont go down to the bank to apply for a loan but soon find themselves hostages in a bank robbery attempt.

Fred lands in the hospital after an accident in which Fred accidentally witnesses a murder attempt. With a guarded hospital room, Fred becomes suspicious of everyone since the real criminal wants him killed. However, Fred is after the reward money he'll get if he testifies despite putting his life on the line.

Lamont runs into Chuck Barris in a parking lot and he generously gives Lamont four tickets to a taping of The Gong Show, which happens to be Fred's favorite game show. Fred decides to try to be a contestant and sets up an act with his brother-in-law, Rodney and Lamont. However, at the last minute, Rodney hurts his back and can't be in the act.