Following the conclusion of the All Valley Karate Tournament, Daniel becomes concerned about the resurgence of the Cobra Kai dojo under Lawrence (and later, Kreese) and decides to start his own dojo in response, locating it at Miyagi's former residence, which Daniel currently owns. Unfortunately, in the season 2 finale, a brawl ensues between the students of Miyagi-Do and Cobra Kai at school, resulting in serious and life-threatening injuries to a Cobra Kai student (Miguel Diaz) and possible legal consequences for a Miyagi-Do student (Robby Keene). Daniel's wife Amanda furiously demands her husband close down the dojo to prevent any more incidents. Daniel sadly obliges, feeling he has tainted his mentor's legacy.