There was a time when Hollywood was trying really hard to turn Hulk Hogan into a legit movie star. With films like this, though, they skipped the standard process of turning a famous muscle man into a star which usually involves being an action hero and went straight to family comedy. It’s like if Schwarzenegger’s big film break had been Kindergarten Cop.
According to Wikipedia, this movie was originally intended for DeVito and Schwarzenegger, before they decided to do Twins instead.
Since Twins came out in 1988, that means this movie would have primarily been written in the mid-eighties, so it makes sense that they would be copying Star Wars as much as possible.