After Randy Marsh says the n-word on Wheel of Fortune and he apologizes to Jesse Jackson for it, he goes to the Laugh Factory to watch an African American man named Coyote Brown perform stand-up. While there, Coyote calls out Randy, saying that he recognizes him from Wheel of Fortune and refers to him as "n***er guy", causing Randy to walk out of the building in shame.
The exterior of the building is colored light brown with its name written in yellow. A white screen shows the current performer along with several posters of Coyote Brown on them.
The interior of the building has many tables and chairs for patrons and a stage for the performer. The walls are colored black with orange decorations.