Erza says goodbye to her childhood friends (slaves). The team returns to Magnolia and finds their HQ rebuilt. Juvia and Gajeel have joined Fairy Tail. The guild prepares for the annual Fantasia parade. Lucy hears about the Miss Fairy Tail contest (to pay the rent). Laxus Dreyar (Makarov's grandson) declares his intention to take over the guild by force. With his bodyguards from the Raijin Tribe, he petrifies the candidates, imprisons all those over 80 years old (including Makarov), and forces the members to fight each other.