Cobra Kai Season 5 Episode 7, “Bad Eggs,” starts with Daniel’s (Ralph Macchio) voiceover: Cobra Kai has taken over the Valley. All anyone knows now is Cobra Kai and karate. Terry Silver’s (Thomas Ian Griffith) brand of self-defense is dominating the California area. Sam (Mary Mouser) is reading Facebook status reports on Silver’s growing franchise, with Amanda’s (Courtney Henggeler) voiceover saying Miyagi-Do may be back in the fight, but Cobra Kai never left it. Carmen (Vanessa Rubio) is collecting mail and a snake-shaped pamphlet is nestled among the letters. Johnny (William Zabka) worries if the expansion continues, all they fought for won’t even be a memory. Something’s cooking and if Miyagi-Do doesn’t make their move, every kid in the Valley will be forced to choose. Anthony (Griffin Santopietro) is grabbed on the street by Kenny (Dallas Dupree Young) and Cobra Kai members, dragged to a bathroom, and dunked headfirst into a filthy toilet.
Daniel is marking locations of Cobra Kai’s new locations on a San Fernando Valley map at the car dealership while Chozen (Yuji Okumoto), Amanda, and Johnny are brainstorming — they’ll need to get their hands dirty, and pull some skeletons out of Silver’s closet. Does Daniel know any of Silver’s old friends? Daniel and Chozen have gone down that road, and it blew up in their face with the destruction of Mike Barnes's (Sean Kanan) livelihood. Maybe to "beat a monster, they’ll need a monster?" suggests Amanda, referring to the incarcerated Kreese (Martin Kove). Nobody likes the idea, particularly Johnny, who’d prefer Kreese to rot in a deep, dark hole. Desperate times call for desperate measures, though, and Kreese knows Silver better than anyone else. A customer interrupts their meeting, because he wants to buy a car and nobody is out there selling.
Miyagi-Do is open for business and the recruits are training in the yard. Anthony and Sam chat about the toilet incident and how he needs to stand up to Kenny while Miguel (Xolo Mariduena), Hawk (Jacob Bertrand), and Demetri (Gianni DeCenzo) are doing pre-workout stretching and indulging in some will-they-won’t-they talk about Miguel’s relationship. Demetri's snarky remarks have little relevance to the former couple’s situation, especially since Miguel wants to keep it platonic. There is some name-calling from Hawk, who spots Robby (Tanner Buchanan) strutting into the yard. A sharp whistle from Chozen mobilizes the team. Chozen gives each member an egg and says they must protect themselves — from him. He produces sai weapons and is ready to attack, urging them to run. Everyone takes off.
At Cobra Kai, the recruits are getting pushed hard. Devon (Oona O’Brien) would like to know why are they getting ready for a fight and Tory (Peyton List) seems alarmed by the girl’s comment. Tory has been freezing Devon out, in part because Cobra Kai is dangerous and Devon shouldn’t be there, but Devon puts Tory’s remarks down to jealousy. Kenny is making Kyler (Joe Seo) and the others look bad by training so hard. Meanwhile, slithery Silver and the Machiavellian Kim Da-Eun (Alicia Hannah-Kim) survey the CCTV footage. Silver is euphoric following his recent success. Their dojo needs new leaders and Tory is a prime candidate, Kim speculates. Who else can rise to the occasion? They’ll need to run a gauntlet: Rise or crumble.
It’s visiting day at the prison and Kreese has two unexpected surprises waiting. Johnny and Daniel have come to propose an alliance. Both almost feel sorry for Kreese, languishing in this jail. The thug from the previous episode is ass-kissing Kreese, who warns him to scram. Kreese isn’t happy to see Daniel, and says he wishes to speak to Johnny alone. There is a lot of bad blood between these men, but nevertheless, they have a common enemy. Kreese knows what Silver is up to but refuses to help. Back at Miyagi-Do HQ, the sand timer has nearly run out and Chozen is going after the students. They are all trying to think up ingenious ways of protecting their eggs. Some sit on the egg, some climb trees, while others use brute force or their mind to outwit the obstacle. Sam is getting deja vu having Robby back at the dojo, and they laugh. Miguel looks on and Hawk twists the knife by suggesting Robby is moving in with Sam. Miguel is surprisingly mature, saying he is cool with Robby, and boys and girls can be friends. Another angry whistle from Chozen gets their attention. Demetri is full of annoying self-assurance and egg puns. He has devised the perfect strategy for protecting his egg, which Chozen demolishes in seconds.
Silver is at the dojo espousing his philosophy. The world is made up of two types of people: leaders, and followers. Cobra Kai needs both to function successfully, and he wants the dojo to be run like a military unit. They are split up into pairs and only the strong will prevail. Kenny and Payne are first to face off against a super-sensei and fail miserably. On the girls' team, Tory and Devon are pitted against Kim, but they’ll need to work together to stand a fighting chance. Kim takes both down simultaneously. Back at the prison, Daniel is trying to get Kreese to spill the beans, though Kreese says he tried to help (with the newspaper clipping) and Daniel failed. Kreese may have not got the outcome he hoped, though Daniel getting his ass kicked was a nice consolation prize. Daniel has resources; he might be able to help Kreese get out. Kreese could be persuaded to tell what he knows but wants a top guy to represent him. They have a deal.
More students are disqualified from Chozen’s egg game. Robby tries breaking the ice with Hawk, who is not keen to get reacquainted with the guy who cut off his mohawk. Robby lists off all the nasty stuff Hawk was responsible for while a Cobra Kai. Sam and Miguel are the last people standing in the game and are hiding out in Mr. Miyagi’s cabin. They both catch up, and he’s surprised she is back in karate, but not as surprised as she. Miguel is still in mature mode when Chozen crops up out of nowhere and breaks the egg. Sam makes a karate stance only to discover Chozen has her egg too. Kenny and Kyler are not faring much better at their dojo. The super-sensei is showing no mercy and Kenny is sick of being a punching bag. He walks off and Silver sends him to his office. Once there, Silver and the boy have a heart-to-heart. Kenny has always followed others, in this regard they are similar. Silver spent his youth listening to other people, but only by listening to his own instincts could he reach his potential. Silver has seen the best fighters in the valley, and he believes Kenny has more potential than any of them. He has to start trusting his instincts.
Johnny and Kreese are having a staring match while Daniel phones a lawyer. In an uncharacteristic display of generosity, Kreese offers Johnny some jello. Johnny wants nothing from Kreese. Kreese starts playing mind games, does Johnny really want to end Cobra Kai? Or would he be willing to reclaim it? Kreese maintains that everything he did, he did for Johnny. Johnny is in the fight to erase everything Kreese did, every mark he made, and every memory of him. Kreese is angered by it. Daniel returns with news about the lawyer. Will Kreese hold up his end of the bargain? Meanwhile, Chozen is frying eggs at Miyagi-Do HQ. "Snakes will take you down," he spits, "one by one," and they must adapt, or they’ll die. They each take a second egg and prepare to get their asses kicked again. Anthony, using his brain, reckons they need to stick together. Chozen is secretly pleased with this turn of events. They make a defensive barrier surrounding a basket of eggs. Chozen charges in and the kids keep him at bay in a fun and well-choreographed fight. Maybe they’ll take out Cobra Kai after all?
At Cobra Kai, Kim is beating her recruits and loving every second of it. She is disappointed, though, because none of the girls have met her expectations. Devon wants another round with her and begs Tory to join her. Tory and Devon accept the ruthless woman’s challenge. They lose again and Kim deducts points from them. Kenny is back in the ring and doing it his way and gets into a scuffle with Kyler; it leaves Kenny free to blindside the sensei and win. Both Silver and Kim don’t want honorable leaders, but people who are willing to fight dirty.
Kreese reflects on his memories of Terry Silver as a slight, fearful boy, much like Johnny and Daniel once were. Silver and Kreese embarked on a trip to Asia where the Way of the Fist first started. They trained with Kim Sun-Yung, a brutal sensei, and we get a flashback to South Korea in 1980 with Silver (Nick Marini) and Kreese (Barrett Karnahan) training outside. Kim Sun-Yung supervises and a little girl (Kim Sun-Eau?) hides, watching it unfold. Kreese is sitting in the forest and approached by Silver, in a suit, ascot tied at his neck. Silver bought Kreese his dojo; this is where Cobra Kai’s legacy began. Silver shows him a magazine with details about a secret karate tournament. If they won, they’d be the "Super Bowl of karate" – Kreese isn’t ready, he needs to focus on his students. There is a kid in his dojo Kreese thinks could be good, and they even share the same name. Now, Silver is getting ready for that tournament and if he wins, Cobra Kai goes global. Silver’s on the verge of getting what he’s always wanted. Kreese asks for the lawyer's number and Daniel slides the piece of paper over to him. The words "no mercy, motherfucker" are written on it.