Source: Kansas City Business Journal
Three Dog Bakery LLC has filed a lawsuit against Arkansas franchisees Robert and Paula Critselous and their company, Crit Inc., alleging breach of contract and theft of trade secrets. The Critselouses, who operated a Bentonville location since 2015, reportedly ceased purchasing products in July 2024 and stopped paying required fees by October 2024. By March 2025, they rebranded their store as Drooly’s A Dream Dog Bakery, allegedly selling products identical to Three Dog Bakery’s, such as the Grr-een Beer Cookie.
The suit claims they retained proprietary materials, including an operating manual with recipes, and continued using Three Dog Bakery’s equipment. In addition, they are accused of encouraging other franchisees to breach their agreements. Three Dog Bakery seeks injunctive relief, return of property, damages, and legal fees. In response, Robert Critselous criticized the company’s focus on mass-market products over supporting local franchisees.