As Christmas approaches, Santa is more excited than ever, partly because the baby could arrive at any moment. By the time Santa comes to know from the Council for Legendary figures about mischievous Jack Frost who wants spoil Christmas and takes over the Christmas as 'Frostmas'. He is doing penance as a North Pole helper after violating rules of the Council of Legendary Figures, which includes Cupid (Kevin Pollak), Mother Nature (Aisha Tyler), Father Time (Peter Boyle) and the Easter Bunny (Jay Thomas).
Eventually, Curtis reveals to the Jack Frost that the snowglobe can be used to activate the "Escape Clause", the most powerful clause of all the Santa Clauses. This clause can help the current Santa escape from his job as Santa; if he holds his snowglobe and says, "I wish I had never been Santa Claus at all", the Clause is triggered, and he can return to the point where he becomes Santa and prevent the event from occurring. Frost tricks Santa into arousing 'the Escape Clause', which transports everyone back to the Time.
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Director Michael Lembeck brings back The Santa Claus once again for the third time. The Santa Claus 3: The Escape Claus has Tim Allen again suiting up as the jolly old Santa Claus here. For The Santa Claus 3 the story deals with a new clause – 'The Escape Clause'
