The Karate Kid III (1989)
Ending / spoiler
Directed by: John G. Avildsen
Starring: Pat Morita, Ralph Macchio, Robyn Lively, Thomas Ian Griffith
Daniel goes to the Cobra Kai dojo to tell Silver that he won't enter the tournament, he then discovers that Silver is evil and that Kreese is still alive. Barnes is also there and they are about to beat Daniel to death when Miyagi saves him and wipes the floor with all three of the villains. Daniel defeats Barnes in the final of the tournament.
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Mr. Kesuke Miyagi: Inside you same place you karate come from.
Daniel Larusso: My karate comes from you.
Mr. Kesuke Miyagi: Ah. Only root karate come from Miyagi. Just like bonsai choose own way grow because root strong you choose own way do karate same reason.
Daniel Larusso: I do it your way.
Mr. Kesuke Miyagi: Hai. One day you do own way.
Trivia: When Daniel is persuading Myagi to use his college money to buy a store for selling Bonsai trees, he takes a wad of cash, smells it, and says, "Hmm. Looks like money.smells like money." Ralph Macchio has practically no sense of smell at all, so just for fun he always makes a point to smell something in every movie he does.
Matty BlastQuestion: How did Kreese lose his dojo?
Answer: Kreese strangled Johnny, after the latter lost to Daniel. This proved just what kind of teacher, as well as person, Kreese is. His students after seeing this, realised just what Cobra Kai puts in their head, as well as just what kind of person and teacher Kreese is. Specifically, after seeing Kreese strangle Johnny, they thought, "I WON'T be your student, if you're gonna treat me like that!" Therefore, they left, and Cobra Kai went out of business.
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Answer: He lost all his students after he flipped out on Johnny. Without students, he couldn't pay his bills.
Greg Dwyer