In 2003, in the intriguing town of Passaic, New Jersey, the beloved but declining VHS rental store, Be Kind Rewind, faces imminent demolition. Its owner, Mr. Elroy Fletcher, passionately claims that the legendary jazz pianist Fats Waller was born in his establishment. Unfortunately, the building is labeled a slum by local authorities, granting Mr. Fletcher just 60 days to renovate or face destruction.
Before embarking on a trip to honor Waller with friends and learn from a modern DVD rental store, Mr. Fletcher leaves his only employee, Mike, in charge, with a warning to keep his conspiratorial and accident-prone friend, Jerry, away from the store. Misreading this caution on a fogged-up train window, Mike neglects the advice, leading to unforeseen chaos.
When Jerry, convinced that the nearby electrical substation is affecting his mind, receives a jolt that inadvertently magnetizes him, he unintentionally erases every single VHS tape in the store—along with messing up the TV when he walks past it. Amidst the turmoil, Mr. Fletcher contacts an acquaintance, Miss Falewicz (Mia Farrow), to return Driving Miss Daisy and keep an eye on the shop.
Facing the impending disaster of the tape collection, Mike realizes they need a plan when Miss Falewicz expresses interest in renting Ghostbusters. Not wanting to cause panic, Mike proposes a wild idea: why not "Swede" the film featuring Mike and Jerry as the leads, utilizing budget-friendly special effects? They set to work in a nearby library, completing the film just in time. When another patron requests Rush Hour 2, they seize the opportunity to film again, bringing in Alma (Melonie Diaz) to join their amateur movie-making venture.
Word spreads about the unexpectedly hilarious productions, and soon Mike, Jerry, and Alma are overwhelmed with demand for their "Sweded" films. They cleverly claim these films originate from Sweden, allowing them to charge a premium—$20 rentals instead of the usual dollar. As their enterprise churns out more and more films, Mr. Fletcher returns, initially considering a shift to a DVD rental model. However, he quickly realizes that the "Sweded" films are far more profitable than traditional rentals and eagerly joins in the filmmaking fun. Alma's idea to shorten movie lengths leads to even swifter productions.
Tragedy strikes when two court bailiffs show up, asserting that their caps on copyright infringement lead to the confiscation of films and assets, effectively crushing their tapes under a steamroller. With the renovation funds evaporated, Mr. Fletcher is crushed when he confesses to Mike that the Fats Waller connection was fabricated. The group is given just one week before the building is set to be razed.
Determined to create a final tribute, Jerry rallies the community to help produce a documentary celebrating the fictional life of Fats Waller. They affectionately title it Fats Waller Was Born Here. On demolition day, Mr. Fletcher invites locals to witness the grand finale. However, in the rush, Jerry accidentally breaks their solitary television. Thankfully, a neighboring DVD store owner steps in to loan them a video projector, allowing them to showcase their film on a white sheet displayed in the window.
As the film concludes, Mr. Fletcher, Mike, and Jerry step outside to discover a sizable crowd gathered to view through the glass, which includes city officials and demolition workers, who respond with thunderous applause. In a dramatic twist, the city council leader reconsiders and permits the store to remain untouched. The demolition is ultimately canceled, leading to a celebratory atmosphere as credits roll alongside more from their mockumentary, featuring Fats Waller's delightful tune, Your Feet's Too Big.
