It's time for Michelle's potty training. All three parents are so proud of her! Danny buys her the coolest potty chair and everything. Kinda tacky...
On another note, Jesse and Joey decided to combine their talents together and go into advertising business. This is yet another establishment in the show that will keep them employed throughout the rest of the show. It seems that Season 1 was just there, while Season 2 develops the characters a lot more. Of course along with that is the bickering Jesse and Joey have together. Their first fight as partners is witnessed by the girls and they have to explain to their girls that adults fight sometimes and things are said that aren't really meant.
Finally, D. J. and Stephanie get into it because Stephanie keeps taking D.J. stuff and interfering in her life.