I'm able to import the file and read it, but I don't think it's saving to the structure. I want to figure out how to save it within the structure so I can search/ delete the contacts. The unfortunately lengthy code is below:

#include <stdio.h> 
#include <string.h>
#include <stdlib.h>
#include <conio.h>
#define BUFFSIZE 500
//Structure for contacts. These are now pointers.
typedef struct friends_contact{

  char *First_Name;
  char *Last_Name;
  char *home;
  char *cell;
}fr;
//Function declarations 
void menu(fr*friends ,int* counter,int i,char buffer[]);
void setFirst(fr*,int *,int i,char buffer[]);
char getFirst(fr*,int i);
void setLast(fr*friends, int* counter, int i,char buffer[]);
char getLast(fr*friends , int i);
void setHome(fr*friends, int* counter, int i,char buffer[]);
char getHome(fr*friends, int i);
void setCell(fr*friends, int* counter, int i,char buffer[]);
char getCell(fr*friends, int i);
void add_contact(fr*friends,int* counter,int i,char buffer[]);
void print_contact(fr*friends ,int* counter, int i,char user_entry3[50]);
char delete_contact(fr*friends ,int* counter, int i);
int show_contact(fr*friends ,int* counter, int i);
void file(fr*friends ,int* counter, int i,char user_entry3[50]);
void file2 (fr*friends ,int* counter, int i,char buffer[],FILE*read);

int main() 
{
  fr friends[5];
  char buffer[BUFFSIZE];
  int counter=0;
  int i=0;

  menu(friends, &counter,i,buffer);

  getch();
  return 0;
}
//Menu function
void menu(fr*friends,int* counter, int i,char buffer[]) 
{
 int user_entry=0;
 int user_entry1=0;
 int user_entry2=0;
 char user_entry3[50]={'\0'};
 FILE *read;
 printf("Welcome! Would you like to import a file? (1)Yes or (2) No");
 scanf("%d",&user_entry1);
 if(user_entry1==1)
   {
    printf("Please enter a file name");
    scanf("%s",user_entry3); 
    read=fopen(user_entry3,"r");
   }else;

 do{
  int result;

  printf("\nPhone Book Application\n");
  printf("1) Add friend\n2) Delete friend\n3) Show a friend\n4) Show  phonebook\n5)Exit\n");   
  scanf("%d", &user_entry);
if(user_entry==1)
  {
    add_contact(friends,counter,i,buffer);
  }
if(user_entry==2)
  {
    delete_contact(friends ,counter,i);
  } 
if(user_entry==3)
  {
    result=show_contact(friends ,counter,i);
    if(result==0){
                  printf("\nName not Found\n");
                  }else{
                        result;
                        }

 }                  
if(user_entry==4)
 {
   print_contact(friends, counter,i,user_entry3);
   if(user_entry1==1)
     {
   file2(friends ,counter,i,buffer,read);
      }else;
 } 

}while(user_entry!=5);
  if(user_entry==5)
    {
      printf("Would you like to save entries to a file? (1)yes or (2) no");
      scanf("%d",&user_entry2);
      if(user_entry2 == 1)
        {
          printf("Please name your file");
          scanf("%s",user_entry3); 
          file(friends, counter,i,user_entry3);
          printf("Goodbye!"); 

     }else if(user_entry2 == 2)
        {
     printf("Goodbye!"); 
        }

    }

 }
//Start of Set functions. Each entry has its own set function that gathers the data
//For each interaction, we have a buffer and a malloc.
void setFirst(fr*friends, int* counter, int i,char buffer[]) 
{
  printf("Enter a first name \n");
  scanf("%s",buffer);

  friends[*counter].First_Name=malloc(BUFFSIZE*strlen(buffer));
  strcpy(friends[*counter].First_Name, buffer);

}

void setLast(fr*friends, int* counter, int i,char buffer[]) 
{

  printf("Enter a last name \n");
  scanf("%s",buffer);

  friends[*counter].Last_Name=malloc(BUFFSIZE*strlen(buffer));
  strcpy(friends[*counter].Last_Name, buffer);
}
void setHome(fr*friends, int* counter, int i,char buffer[]) 
{

  printf("Enter a home number \n");
  scanf("%s",buffer);

  friends[*counter].home=malloc(BUFFSIZE*strlen(buffer));
  strcpy(friends[*counter].home, buffer);
}
void setCell(fr*friends, int* counter, int i,char buffer[]) 
{

  printf("Enter a cell number \n");
  scanf("%s",buffer);

  friends[*counter].cell=malloc(BUFFSIZE*strlen(buffer));
  strcpy(friends[*counter].cell, buffer);
}
//Start of Get functions. Each function sends the data to the executing function.
char getFirst(fr*friends , int pos) 
{

   printf("%s ", friends[pos].First_Name);
   return *friends[pos].First_Name;
}

char getLast(fr*friends , int pos)
{

   printf("%s\n", friends[pos].Last_Name);
   return *friends[pos].Last_Name;

}

char getHome(fr*friends , int pos) 
{

   printf("(Home) ""%s\n", friends[pos].home);
   return *friends[pos].home;
}

char getCell(fr*friends , int pos) 
{

   printf("(Cell) ""%s\n", friends[pos].cell);
   return *friends[pos].cell;
}
//This function allows for the all the set functions to be added.
void add_contact(fr*friends,int* counter,int i,char buffer[]) 
{
   setFirst(friends,counter,i,buffer); 
   setLast(friends,counter,i,buffer);
   setHome(friends,counter,i,buffer);
   setCell(friends,counter,i,buffer);
   (*counter)++;
}

//This is used to delete a name out of the book.
char delete_contact(fr*friends ,int* counter, int i)
{
   char name_search[50]={'\0'};
   char Delete[5]={'\0'};

   printf("Search by last name\n");
   scanf("%s",name_search);//Name entry
   for(i=0;i<*counter;i++)
      {
       if(strcmp(name_search,friends[i].Last_Name)==0)//Copys over the name entered
         {                                       
          strcpy(friends[i].Last_Name,Delete);
         }
       }
    //Freeing up memory.
    free(friends[i].First_Name);
    free(friends[i].Last_Name);
    free(friends[i].home);
    free(friends[i].cell);   

    printf("\nName(s) has been deleted\n");             
}
//This function prints out all the contact information
void print_contact(fr*friends ,int* counter, int i,char user_entry3[50]) 
{
    for( i = 0; i < *counter; i++)
    if (strlen(friends[i].First_Name) && strlen(friends[i].Last_Name)&&        strlen(friends[i].home)&& strlen(friends[i].cell ))
       {

          getFirst(friends, i);
          getLast(friends, i);
          getHome(friends, i);
          getCell(friends, i);
        }
}
//Displays the contact in which you are searching for.
int show_contact(fr*friends ,int* counter, int i) 
{  
   char name_search2[50]={'\0'};
   int flag=0;
   printf("Please enter a last name\n");
   scanf("%s",name_search2);
   for(i=0;i<*counter;i++)
      {
      //If the name is found, it reaturns the contact info.Now works for duplicate last names.
        if(strcmp(name_search2,friends[i].Last_Name)==0)
          {
             (strlen(friends[i].First_Name) && strlen(friends[i].Last_Name)&& strlen(friends[i].home)&& strlen(friends[i].cell ));

            getFirst(friends, i);
            getLast(friends, i);
            getHome(friends, i);
            getCell(friends, i);
            flag++;
          }
     }         


    return flag;
}    
void file(fr*friends ,int* counter, int i,char user_entry3[5])
{
FILE*fp;
char flag2;
fp=fopen(user_entry3,"w");

for( i = 0; i < *counter; i++)
   {
     if (strlen(friends[i].First_Name) && strlen(friends[i].Last_Name)&&    strlen(friends[i].home)&& strlen(friends[i].cell ))
        {

        fprintf(fp,"\n""%s ",friends[i].First_Name);
        fprintf(fp,"%s ""\n",friends[i].Last_Name);
        fprintf(fp,"<Home>""%s""\n",friends[i].home);
        fprintf(fp,"<Cell>""%s""\n",friends[i].cell);

        }
  }
   fclose(fp);
}

void file2(fr*friends ,int* counter, int i,char buffer[],FILE*read)
{
  fseek(read, 0, SEEK_SET); 

  while (fscanf(read,"%s", buffer) != EOF) 
     {
       friends[*counter].Last_Name=malloc(BUFFSIZE*strlen(buffer));

       strcpy(friends[*counter].Last_Name, buffer);

       printf("%s\n",friends[*counter].Last_Name);

      }

}

I understand the code isn't perfect, and might have a few flaws that aren't related to this question, but I've been trying for a while to figure this issue out. It would be greatly appreciated if someone could help me out !

If you want to save the structures then don't use pointers in the structure. Below is an example of how to read/write the structure in binary files. Note that to open the file for writing you will probably want to use other flags than "wb" because "wb" will not save existing data. Read all about those flags here.

typedef struct friends_contact{

  char First_Name[40];
  char Last_Name[40];
  char home[60];
  char cell[15];
}fr;


// save the strcture
fr data;
// fill in the structure, now write it to a file
FILE*fp = fopen("file.dat", "wb");
fwrite(&data, 1, sizeof(fr), fp);

// read the structure from the file
FILE*fp = fopen("file.dat", "rb");
fread(&data, 1, sizeof(fr), fp);
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