It's the start of William Worthington's second year at The Jolly Theatre School and he and the rest of the students demand to have new school uniforms because they've all grown out of last years' clothes.
When the class isn't allowed to practice any sports, they find a way to exercise during a performance of Hamlet. Humphrey's performance even earns him an award.
The students are desperately trying to collect money to save The Jolly Theatre School from going out of business. In the end, the Jolly sisters receive aid from an unexpected source: Stanley Spadley, the school janitor.