The title of this episode is ‘Now You’re Gonna Pay’ and it carries with it a lot of different meanings. The focus is on Daniel and his business troubles but we also see what the cost of the school brawl has on the cast of characters.
The price Daniel (Ralph Macchio) is paying is his car dealership is loosing customers. He has always used Karate to promote his brand. This is now coming back to haunt him as he is seen as one of the instigators of the valley’s Karate problems. Business is so bad that he gets an offer from his rival, Tom Cole (David Shatraw), to buy his dealership. Cole says he should sell now as his business will be worthless in a few weeks time. Daniel finds out from a former employee that this is because Cole has signed an exclusive deal to sell imported Japanese cars. Using flashbacks of Mr. Miyagi from the original film, Daniel centers himself and comes up with a plan.
Johnny (William Zabka) literally trying to find a way to pay for Miguel’s (Xolo Maridueña) back surgery. Feeling guilty because his son caused the injury, he is prepared to do whatever it takes to get the money. He awkwardly attends a job interview, tries pawning his belonging, and ends up asking for a handout from his wicked stepfather (Ed Ansner). this results in him stealing some artwork from his stepfather’s home to help cover the surgery bill. Because Johnny is to busy trying to look after Miguel he doesn’t have time to visit Robbie (Tanner Buchanan) in juvenile detention where Robbie is paying for his misdeeds.
Samantha LaRusso (Mary Mouser) gets the Miyagi-Do team together to help raise funds for the surgery with a car wash. The Cobra Kai’s, lead by the increasing unhinged Hawk (Jacob Bertrand), believe that the Miyagis are using Miguel’s injury for self promotion so they decide to make them pay. They beat the crap out of Nathaniel and steal the money. This leads to Samantha restarting the Miyagi-Do training and when asked if her father would object she says he is out of the country.
The reveal at the end of the episode is that Daniel has gone to Tokyo to try and solve his car contract problems.
With this episode the show sets itself up for the rest of the season and gives us an idea where it is heading.