Bruce is on top of a building watching the city when a couple gets robbed and Bruce jumps into action. He's even got a Batman voice as he warns the robbers away. Bruce finds the robber holds a license for Misconduct. Bruce took off his mask. R'as al Ghul was watching.
A wedding is interrupted by a bunch of robbers as they attempt to steal everything. Victor Zsasz shows up and tells the robbers they don't have a license. He takes them down and then the real robbers come in and rob the place just as the bride and groom think it's all going to be okay.
Penguin is meeting with the new mayor and police commissioner about unionizing crime. The Mayor isn't too keen on Penguin's idea but then agree for a percentage. People who have a license don't get busted for criminal activity.
Jim walks into the bar and finds it being held up and he takes the guy down and takes him to the GCPD for processing.
A guy from the mayor's office tells Bullock that Gordon needs to comply. He complains to Harvey who tosses it off and tells Jim he has to comply.
At Wayne Manor Alfred and Bruce talk about the license for crime. Bruce wants to fight back at Penguin, but Alfred isn't so sure. Bruce is determined though.
The guys who got busted by Zsasz are in Arkham. They want Jonathan Crane and pay off the warden to take him. They want to use his toxin to defeat Penguin and Zsasz. They head back to the old house and get the toxin that was hidden in the porch boards. They threaten Crane to make more toxin.
They go into a bank and spread the toxin without a license. Jim and Gordon investigate. Jim is going to search for the guys who did it because he believes they don't have a license so he goes looking for Jonathan Crane. When they get to Arkham, the warden pushes them off, but then tells them the truth.
Jim and Bullock head to Grady's place, but they are waiting for them and attack them before they have a chance to react. They get away.
Selina walks in a dark alley and runs into a group of guys to try out her new skills on. She's being trained by Tabitha. When they get back to their apartment, Zsasz is waiting for them. He wants them to get their license and invites them to Penguin's party the next night. He tells them they have no choice.
Tabitha doesn't want to have anything to do with Penguin.
Bruce visits Jim at the GCPD to talk to him about Penguin's licenses. Bruce appears and disappears just like Batman.
Penguin holds court with the press at his new club, The Iceberg Lounge. As Oswald is telling his story about how he froze Nygma, Jim shows up and tells him about the fear toxin gang.
The fear toxin gang push Crane to make more toxin.
Jim orders cops to watch Penguin's club to get the fear toxin club.
Crane is locked in the closet with the scarecrow the fear toxin club put in there. He's having nightmare visions.
A bunch of cops approaches Jim to talk about him rocking the boat. They are not happy and send him a message.
Bruce and Alfred greet Penguin at the Iceberg Lounge. Bruce asks about the licenses. Bruce's attention is taken by Selina who arrived by herself. Tabitha shows up a bit later.
Penguin surprises the fear toxin gang who thinks they were going to release the toxin without him knowing.
Bruce follows Selina to the roof where she is walking on the ledge. She invites Bruce to talk to her on the ledge. He does so. Alfred interrupts and tells Bruce there is a situation.
Penguin has the fear toxin gang at center stage in front of everyone at the club. Bruce confronts Penguin about what's going to happen to the guys.
Ivy is not happy and turns the electric off in the club causing mayhem. Penguin is sprayed with toxin as mayhem ensues. Jim shows up and arrests the fear toxin gang. Zsasz and Alfred face off, but then end it once Jim shows up. Penguin has visions of a crazy Nygma and grabs Jim for help.
Bruce shows up at the guy who keeps Penguin's list and takes the list. As Batman of course. He goes to a roof and finds someone committing a crime. He leans on the glass and falls in.The robbers take off as Jim and Bullock enter and find Bruce with his mask off.
One of the fear toxin gang embers opens up the closet door but Scarecrow greets him instead of Crane.