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Encanto became a success story for Disney and although there have been hints of the possibility of a sequel, nothing has been confirmed yet.
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Disney Producer Hints at How the Company Could EXPAND the 'Encanto' Universe!
Page 81 – D23
Encanto Producer & Disney Looking At 'Different Ways' to Expand the Franchise - IMDb
Describing “Encanto” as Disney's “newest animated franchise” might mean that “Encanto” gets the “Frozen” treatment (multiple shorts, spin-offs and a sequel) in the near future. What do y'all think of this?
Encanto' Reaches No. 1, but Moviegoers Are Tough to Lure Back - The New York Times
Encanto' Producer Teases Disney Looking At Ways To Expand Franchise, encanto disney
Disney Producer Hints at How the Company Could EXPAND the 'Encanto' Universe!
Encanto Producer Teases What's Next for Disney's New Franchise
Encanto' Sequel Receives Exciting Update Amid Disney Disaster - Inside the Magic