This flashback will trigger in Part 3 as you are speaking to the reporter for the Thimbleweed Nickel.
As Franklin, you'll need to get a disguise, a room, and prepare yourself for a meeting. Walk into the Hotel and go all the way to the right side in the lobby and speak to the Annoying Kid. You'll find that he can't hear you over his music. Push his radio and then talk to him. Convince the Annoying Kid that you know about the latest and greatest by using '80's lingo and he will trust you enough to trade his glasses (and some Chewing Gum) for a PillowBear. Use the glasses and you now have a disguise!
Next, you will need to get yourself a room. Speak to the Hotel Manager and request a room under the name Frank Zappa. You'll recieve a key card to your room, and learn that there's a point where there are no cameras in the hotel. Go to that level (I don't know if they change with each playthrough or not) and you'll find a hotel floor with open doors. To the immediate left of the elevator is a stand labeled "HotelTron" that has two pictures. Pick both up. Venture into four of the open rooms and collect the stationary that sits at the far left table of each room.
With these papers in hand, head back to the lobby and ask the Hotel Manager to photocopy the document in your inventory on to the stationary. You're almost done!
Now, head to the room indicated by your keycard. Inside, Franklin will observe the HotelTron has a perfect view of the room. Using the Chewing Gum you recieved from the Annoying Kid, and whichever picture most looks liek the layout of your room on the HotelTron will complete your preparations. Use the phone to call for the meeting to start, and watch how it plays out.