A sequel, titled "The Phantom of the Opera 2: Terror in Manhattan", was planned, but never made. According to a 1991 article in Fangoria Magazine, the screenplay was re-written for Dance Macabre (1992), also starring Robert Englund.
The first version not to feature a falling chandelier. The chandelier scene was originally written in the first script by Gerry O'Hara. One of the reasons why this is the only Phantom film not to include that classic scene, is because Menahem Golan, CEO of 21st Century Film Corporation, who at the time had just resigned from The Cannon Group, Inc. in 1988 after that company's collapse, didn't have enough money to pay for an expensive chandelier to fall, and then to redo the scene take after take. Duke Sandefur then was hired to re-write the script without the scene.
Was originally set to be released through The Cannon Group, Inc., and to be directed by John Hough, but the film was passed on to Menahem Golan's then-newly started studio 21st Century Film Corporation, after The Cannon Group, Inc. filed for bankruptcy. Hough was replaced by Dwight H. Little.
Producer Menahem Golan reportedly sunk so much money into the release of the film, with prints and advertising, that when the picture bombed, he had no more funds to release any future 21st Century Film Corporation productions, and had to sign various U.S. distribution deals to get them out.