Richie and Potsie, in their never-ending effort to get girls, decide that they want to join a gang called the Demons. However, in order to be accepted, they have to perform several dares.

Richie wins a date with a movie star, Cindy Shea, to a school dance, and Gloria breaks up with him because of circumstances surrounding it. Cindy, however, will only be able to meet up with Richie after the dance has started.

Richie is forced into being a disc jockey at a local radio station when one there suddenly quits. His boss informs him that he has the potential to become the next Wolfman Jack, and Richie begins to develop an inflated ego and neglect his friends.