It all takes place in Fazbear's Family Diner, the Bite of '83 happened which led Evan into a horrible coma which led to nightmares and eventually died in his coma, William Afton went crazy, built a second pizzeria, killed 5 children then stuffed them into suits, the souls haunt the suits and attack Michael accidentally mistaking him for William, Michael warns William about the haunted animatronics, William disassembles them, then keeps the broken animatronics in the pizzeria with the toy ones.