This is the only film featuring Ernest P. Worrell (Jim Varney) in which he is not the title character.
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.
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.
Most copies of this film that are available are of very low visual quality. Because of this, some fans have been campaigning for the film to receive a new scan from the original 35mm film negatives. This might prove very difficult as all the negatives and prints of this film no longer exist. A few prints were, however, sold to private collectors within the last few years. So the chances for a digital remaster of the film are possible, but very low.
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.