This episode starts out with Ed's piece of gum being used to obtain a quarter from the sewer. After successfully bringing the quarter out of the sewer, a bird comes by and steals it out of Eddy's hand. Eddy's anger is distracted when they then see a plane advertising Joe's Clubhouse. Eddy thinks it would be cool if they had their own clubhouse, so the Eds go out to try and find a spot to build one. Kevin's backyard doesn't work out with him, the landfill is deemed "too unsanitary" by Edd, and the local mailbox is too small. A perfectly sized tree is then discovered by Edd. They first need to find some wood to make the clubhouse and after some help from Jonny 2x4 and Plank, they begin building "Club Ed".
Ed is afraid of going up, but when he finally does, he keeps falling off. It is eventually finished, and the Eds are off to find members. Eddy's hard sell act doesn't work well. Kevin is skeptical about the "stock car" and "yacht races", and Plank claims he can see through the obvious scam. Nobody joins after seeing the clubhouse since they were laughing instead, because the Kankers invaded the clubhouse and took it over, and they are not going to give it up that easily.
By the end of the episode the Eds fail to get their clubhouse back and shortly afterwards Eddy is thrown into the clubhouse by Ed, then further thrown far out into a thorn bush by May. Edd then begins removing the thorns off of Eddy as he tries to come up with an idea to get the clubhouse back, but has to deal with the pain from the thorns being removed from his skin. The episode ends there.