As Frank drives away from the McLeod house and the incident with the police, he considers that his mistake with the McLeods was that he made no effort to really get to know them. He feels he should have had them over to his house for a cookout to show them know that he was a reasonable guy and different than typical landlords. Frank then recounts the history of the birch-beer stand that he co-owns with Karl Blemish, a man who had unwisely tried to turn the stand into something bigger and better, spending too much money in the process. Frank’s vision of the birch-beer stand was a very stripped down, simple business where only birch-beer and hot dogs would be sold. He offered to bail out Karl under the agreement that his vision for the place was the way it would be. Karl agreed, and they eventually became business partners, with Frank primarily being a kind of silent partner, and Karl the one actually running the operation.

The narrative once again veers away from the flashback to the present. As a last order of business, Frank stops by the birch-beer stand and meets with Karl.