I've never been less scared at a scary movie than with I Know What You Did Last Summer. I can't even begin to imagine how much less scary than that the sequel was.
And of course, the direct to DVD
I'll Always Know What You Did Last Summer.
Though I don't think DtDVD counts for this, since you're pretty much admitting to the worthlessness by default (there are probably exceptions - that is, DtD sequels that aren't worthless - but I can't think of any offhand).
Is there a franchise that bounced back on the third try?
I want to say yes, but I can't think of one off the top of my head. Indiana Jones, maybe?
Goldfinger.
I dunno, I prefer
From Russia With Love
to Goldfinger, and I think it was also better than
Dr. No.
shrugs
Not all direct to DVD releases were conceived that way, though. Some of them are an admission post-completion of suckage.
Scarlett
the horrendous sequel to
Gone With the Wind.
Bring It On 2.
Even worse, Bring It On 3. Coming out on DVD soon! (To be fair, I haven't seen it, but it is a straight to DVD flick and I can't imagine it's any good.)
Sometimes the straight to DVD surprises. About as often as Haley's Comet, but it can happen. Lion King 1 1/2 cracked my shit up.
Toy Story 2 was originally supposed to be a direct to DVD, but then TPTB decided (rightly, IMO) it was good enough to be a theatrical release.
Some of them are an admission post-completion of suckage.
Prophecy 3 & 4.
Now, the fact is, I loved them...but I'm bent that way.
Still, with no Walken, the point was lost like a lamb in a wolf den...BUT...shirtless Jason Scott Lee...so there's that.
The commentaries pretty much confess that the film makers were just doing it for a lark. They filmed both together and, with hope, or perhaps delusion, included a cliffhanger at the end of 5.
With a wobbly lack of shame, I admit that I'd rent 6 if it existed.