Flicker and Sir Loungelot come across Count Geoffrey and Evil Knights 1, 2, and 3, setting up something unknown involving a weight tied to a tree, a springy trampoline sheet, a cow, and a bucket of lobsters. Geoffrey sends the Evil Knights after Flicker and Loungelot, and in the ensuing confusion, Loungelot, trying to draw his sword, accidentally throws it, bouncing off the springy sheet while Geoffrey gets the lobster bucket on his head. The sword severs the rope holding up the weight, set directly above Flicker, but Geoffrey, running around blindly, accidentally knocks Flicker out of its way before it falls.
According to the Code of Chivalry, a squire is indebted to any lord who saves his life, so Flicker becomes Geoffrey's squire. Loungelot now has to do all the chores Flicker usually did for him, such as extracting honey from the royal beehive, resulting in Loungelot getting stung by bees, only to find that Geoffrey has stolen the honey.
Geoffrey promotes Flicker to his right hand man and orders him to help him with his evil pancake machine, which will make hundreds of pancakes for the dragons to eat (as dragons love pancakes), rendering them powerless.
Loungelot discovers a loophole in the code, that if the squire saves the lord's life in return, the debt is even. So, Loungelot, Sir Burnevere, and Sir Blaze set out to trick Geoffrey. After the Evil Knights fall victim to a treasure chest that kicks them away, they catapult Merle the Wizard (who mysteriously is motionless the entire time) at Loungelot, who sends a balloon resembling him after them.
Just as Geoffrey finishes the pancake machine and it begins making pancakes, Loungelot's next plan involves a polar bear named Gasha. When Loungelot, Burnevere, and Blaze notice the pancakes, they begin eating them, inadvertently knocking Geoffrey into the machine. As it is about to burn him to death, Flicker saves him, thus making the debt even. Gasha chases Geoffrey into the distance.
- Final appearance of Merle the Wizard
- King Allfire does not appear in this episode, except for a picture on Geoffrey's slideshow