At one point, the producers were contemplating making a sequel called "Dr Otto and the Song of the Tarantula Women", which would've featured an exploitation director who was attempting to make his latest film in a small town which would've had the mentioned females, who were scantily dressed women with a spider motif to their costumes. Dr. Otto also would've been involved somehow, as would an overweight biker gang that sang gospel music.
This is the only film featuring Ernest P. Worrell (Jim Varney) in which he is not the title character.
The kids who play the child mercenaries in the day care center are the same kids who played the campers in Ernest Goes to Camp (1987). Director John Cherry's son was a boy scout and he used his son's fellow troop members for both movies.
The film was first released July 19, 1985 on a test run basis to select theaters in Texas, Cincinnati, Ohio, and parts of Kentucky. Jim Varney actually attended a few screenings in Cincinnati.
On July 20, 1985, the film had a special opening at the Cinema 5 in Richmond, Indiana (now the AMC Classic Richmond 11). In conjunction with the Richmond release, at 1:00 p.m., Jim Varney made a special appearance at the showing. Attendees could meet and greet with Varney (autographs were not given due to limited time, as the show started at 1:30 p.m.), and take pictures with him. The first 25 people who showed up saw the film for free.