So much happens in this episode. We see that the Graysons aren't someone to cross or lie to. Frank has been with them for a long time and knows so much about them and still they decide it is better to get rid of him than to keep him around. Of course if the Graysons don't take him back, Frank could end up becoming a big threat to them. Look at what he did to Lydia. (Yes she survived the fall and shouldn't have but we may just have to suspend disbelief and get over it.)
Daniel & Emily are getting closer and closer despite Tyler trying to keep them not super close.
Tyler & Ashley's relationship seems to be blooming which makes the weird cuddling that Tyler wanted to do with Daniel even weirder. Some are saying gay and some are saying pyschopath but either way it is a new development that requires more plot to clear up what Tyler was really thinking.
We see that Jack is willing to put himself out there. First by taking Daniel out of the situation by having him work and then by baring his soul to Emily. Jack says, "Tell me there is nothing here and I'll leave." Emily doesn't say that. She just says I'm sorry which is not the same thing.
Declan continues to pursue Charlotte and is having much GREATER success than his older brother.
Overall it was an amazing episode. Tons of character and relationship development. The episode raises some more questions which is good. This will push people to continue watching trying to get questions answered.
The 4th of July party was "out of season" since it aired near Halloween. However this series is supposed to take place during the summer so they couldn't exactly have a "halloween" episode.