Ally returns back home to Miami with Austin for the last concert of her tour. Austin and Ally reunite with Trish, who was away managing a new boy band named Boynado, and Dez, who was away at film school. But the four's time together is unfortunately short with Ally set to go on a European tour, Trish going back with Boynado, and Dez going back to film school. Ally confesses to Trish and Dez that she's really going to miss Team Austin. Trish confesses that she'd rather stay with her friends than be with Boynado, who fight all the time, and Dez reveals that Carrie broke up with him and film school is boring so he doesn't have much reason to stay there. The three then all agree to stay in Miami for their senior year together. But, to their surprise, Austin had already left to apply to military school. The three then go after him to stop him.
Ally, now a famous pop star, is getting tons of music lessons bookings but mostly just because people want to meet her, not because they actually want lessons. Ally gets so overwhelmed throughout the episode that she gets her self mixed up and does things she wouldn't normally do like take the bus. Pretty soon, while having a lessons with student Lily, Ally gets the idea that maybe Team Austin & Ally could open a music school to teach kids the art of music and the ropes of making it in the music business. When Ally tells the other three her idea, they all really like it and agree to it.
It's the grand opening of the music store and Team Austin & Ally is very excited. But, when Austin and Ally are told by a reporter that the idea of the music school just looks like two pop stars trying to make some extra bucks, the two are pressured into claiming that they can make a child into a musician in just a week. Now, Austin, Ally, Trish, and Dez must work together to teach four kids an instrument by the end of the week. Ally introduces instruments to each child in hopes that they catch on to them.
Austin, Ally, Trish, and Dez start their senior year in this episode and are all very excited to spend their exciting last year of high school together. But, Ally is disappointed when in Advanced Chemistry, she is partnered with Dez rather than a smarter, more focused partner who she would have preferred. Ally does what she can to get her partner switched but nothing works. Ally and Dez are both unhappy with each other as partners, Dez thinks Ally is too controlling. When the two are given chemicals to mix and Dez messes up the experiment, Ally sneaks into the lab to fix it so she can get a good grade. However, Dez only sneaks into the lab afterwards and messes it up again. This causes a chemical explosion in the lab and both Ally and Dez are punished by their teacher.
A new student named Shelby Hayden comes to the music factory for violin lessons but she is not good at it at all. Austin and Ally decide to make a bet on if Ally can teach Shelby how to play the violin by Friends and Family Night. If Austin wins, Ally will make Austin a five foot wide pancake and if Ally wins, Austin will give Ally a designer sterling silver necklace. Ally ends up losing the bet, as the two learn that Shelby's real talent is dancing, not playing the violin. However, Austin still gives Ally the necklace because he believes in her. At the end of the episode, Ally makes Austin the five foot pancake as well.