Julio's house has been transformed into Fred and Lamont's boarding house called The Sanford Arms. Now they've come to the task of finding some boarders and soon find themselves bombarded with an endless supply of crazies, including a hooker, an ex-con, a hippie, a newlywed couple, and Hoppy's eccentric mother.

Fred's sister, Frances and her white husband, Rodney have been having some hard times and they stop by to ask Fred if they could stay with him for awhile. Meanwhile, problems at the Sanford Arms has Fred considering giving Rodney a job as general manager. But Rodney may not accept it since he's scheduled to perform in an act at a nightclub.

Lamont has been saving for acting school and has just enough money. Meanwhile, Fred sees a commercial for a get rich quick scheme and decides to give it a try. Thus, he invests Lamont's money in a supply of Whopper Choppers that he must try to sell. However, selling them is the hard part.

Lamont has been seeing Janet for quite awhile and Lamont thinks he's in love. But he doesn't know too much about her and hasn't wanted to push her into telling him. Thus, Fred decides to find out exactly what she's hiding and he goes undercover with Aunt Esther to dig up the dirt.

Fred is being honored with the Watts Businessman-of-the-Year Award and he's all hyped up about accepting it. However, an unexpected turn of events lands Fred with a serious back problem and takes up means to try to get rid of it, including, acupuncture, meditation and a corset.