The Palace of Depression was a real place in Vineland, New Jersey. A homeless drifter built it out of junk, sand and clay, then charged admission for visitors. Vandals destroyed the Palace after his death, but the original ticket booth still stands. Vineland is currently trying to rebuild the Palace of Depression.
The Fender Stratocaster guitar used by Michael Paré as Eddie Wilson in the concert scenes formerly belonged to John Lyon, a technical consultant for the movie. Lyon is better known as Southside Johnny Lyon, leader of the New Jersey shore band the Asbury Jukes, and longtime friend and frequent collaborator of Bruce Springsteen.
The movie, initially a box-office flop, became a cult classic after airing on cable. The featured single "On the Dark Side" was Top 10 hit in 1984.
The band that actually plays the music is John Cafferty and the Beaver Brown Band. Michael 'Tunes' Antunes is a real sax player in the band.
Eddie Wilson says they played at Fairleigh Ridiculous up in Madison. This was a reference to Fairleigh Dickinson University in Madison, New Jersey. Fairleigh Ridiculous was a nickname for the university.