Eddie tells Malcolm that his garage has a new policy, free drinks while you wait, so Malcolm tells all of the customers sitting at McGee's that they can have free tune ups while they drink. Eddie then says that he will put the drinks back and to forget it. Nicolette and Holly walk in together laughing and Holly says that things are going great. Nicolette says that she has never been this happy, and that she has found the perfect roommate in Holly. When the girls leave, Malcolm and Eddie place bets with each other on how long it will take Nicolette to kick out Holly.
Malcolm sits with Mr. Gordon, from Gordon's Groceries. They have wine and Malcolm tries to persuade him to let his customers park in his parking lot after he closes at eight o'clock. Mr. Gordon says the wine is vinegary, so Malcolm says he will get his best vintage. Then, he runs over to Holly and hands her ten dollars to run down to the liquor store and buy a bottle of wine. Malcolm goes back to Mr. Gordon and tells him his best vintage is on its way. Mr. Gordon tells Malcolm he'd love to help, but the grocery store gets enough rift raft during business hours, Malcolm tries convincing him that McGee's doesn't have any rift raft, but just as he is telling him, Nicolette walks in with a man behind her yelling at her not to walk away from him. Nicolette tells the man when she begins writing a ticket, she has to finish and he argues that he was only away from the car for five minutes. As he yells, Eddie interrupts and asks the man to leave. The man tells Eddie that asking him to leave won't work and he will have to make him, so Eddie does a kung-fu move. The man does one back, and then Malcolm gets in between the two, saying there is no fighting in the bar. The man tells Eddie they will have to settle this "the kung-fu way," a match at Chan's studio, Friday at noon, then he breaks a table and leaves. Malcolm heads back to Mr. Gordon and Nicolette thanks Eddie for saving her and says he was so brave to defend her.
Eddie meets with a kung-fu instructor, Master Li, at the garage. Then, Master Li explains and demonstrates kung-fu to him.
At the apartment, Eddie is sitting on the couch meditating when Malcolm arrives home. Nicolette and Holly walk in and give Malcolm their first rent check as roommates. Again the girls says how well things are going, but then Holly asks to talk to Malcolm in private about work. She tells him how Nicolette is driving her crazy because she never stops talking, even in her sleep. Meanwhile, Nicolette tells Eddie how Holly is driving her crazy because she cleans and organizes to much and is a neat freak.
Later, at McGee's, Malcolm tells Tim that Mr. Gordon loves baseball so he got him an Ernie Banks autographed bat. Then, Eddie walks in and tells Tim he looks good, and hopes he is feeling good. Tim asks him where the fat jokes are. Then, the man arrives saying that Eddie didn't show up for the fight, and Eddie goes up to him to fight, but then sees a small vision of Master Li by his shoulder and Master Li tells him to remain calm, so Eddie tells the man he will not fight. Malcolm tells Tim to go help out Eddie, but Eddie says he won't use his size to intimidate, but Malcolm says he can have free food for a week, so he agrees. He walks over to Eddie, but Eddie tells him no, and faces the man on his own. The man punches Eddie in the stomach and Eddie doesn't even budge. The man leaves and then Eddie falls down.
Back at the apartment, Eddie sits on the couch and Nicolette runs in and tells him she heard what happens and suggests they run away together. Eddie walks into his bedroom and then Malcolm comes in, with Holly behind him. Holly begs him to let her sleep on the couch because she can't take Nicolette another day. Nicolette hears them (since she is standing right there), and starts to go off on Holly about being a neat freak. The two then get into a huge argument and Nicolette kicks Holly out. They almost physically fight, but Malcolm breaks it up. He points out their problems and then they defend each other and make up, but Holly still says she is moving out.
Eddie goes with Malcolm into Gordon's Groceries to give him the bat. The gift makes him really happy, but he says that he still can't use his parking lot. Then the man walks in, to get Eddie. When Eddie goes to fight him, again a vision of Master Li appears by his shoulder, telling him to remain calm. The man does all sorts of moves and Eddie blocks every single one. Then, he picks up Eddie and throws him out of the window... Eddie gets back up and Master Li appears again, and then tells Eddie to fight the man after the man says that Master Li's name should be Coward Li. Eddie beats the man up and in the process he all but destroys the grocery store. After the fight Malcolm and Eddie apologize for the mess and help clean up everything. Malcolm offers to rent the parking lot until all of the damage is paid for, and then rent it for free, but Mr. Gordon still says no. Then, Malcolm has a vision of Master Li, telling him not to give up and to sweeten the deal. Malcolm tells Mr. Gordon that he will also give him a Hank Aaron autographed baseball, and then he agrees.