This had great potential but was a big turnoff overall. Santa is a total jerk in this movie. They managed to make you hate Santa. Santa is at the end of his reign and the bylaws of Santa require him to pick the next Santa Clause. The requirements are a boy that's an Orphan and completely Pure of Heart. The kid that becomes Santa's Apprentice is completely unsure of himself for he's always been told he's a failure and will amount to nothing despite having a heart of gold. Santa does nothing to really encourage him. This is where they blew it. Well, the alien like Elves do nothing to help matters.
Basically you have Santa that has a limited amount of time to pick his future replacement and wants nothing to do with it. He wants to stay in his position and wants to stay Santa regardless of the rules. As long as his apprentice is pathetic and can't perform the job, then he will stay Santa regardless. Santa's plagued with nightmares regarding his replacement, thus, he takes it out on the boy.
Overall it's not horrible but due to it's dated animation style and the portrayal of Santa, even the kids will say what they think of Santa and Jerk is a very polite way of describing him. Decent moral overall in maintaining selflessness and purity of heart but they shouldn't have portrayed Santa in this way. Slow to get to the morals of the movie but could've been better.