Episode Title:Heinous / All Belts are Off.Episode Description:Heinous: The Diaz family receives a visit from Miss Heinous along with her butler and the still-living, still regenerating arm of her pet bounty hunter, Rastacore. Heinous wants "Princess Marco" to pay for causing the students at St. Olga's to rebel and to kick Heinous out, leaving her living out of a car. The Diaz parents are hoping this can get settled so that they can have dinner with the Morrisons. Marco tries to convince a policeman that stopped by that Heinous is evil but fails. After Heinous negotiates with Marco's parents over the kind of punishment, Marco agrees to make a video statement apologizing for his expressions of individuality and for the princesses to go back to conforming.
All Belts are Off: Dojo-sensei informs his class that they are going to receive a visit from the Grandmaster of their How-To-Karate video series. When he chooses Jeremy to represent the dojo, Marco gets upset and tries to convince Sensei otherwise, but Sensei sticks with his choice. Marco gathers video evidence of Jeremy's shenanigans, and is about to share it with Sensei on the day of the demonstration, but realizing it isn't honorable, he apologizes. Sensei tells Marco that he chose Jeremy because his parents fund the dojo and that he thinks of Marco as a friend. Grandmaster falls asleep during the presentation but wakes up and certifies the dojo.