A federal court in Missouri recently granted a franchisor’s motion for a preliminary injunction, finding that the franchisee’s operation of a competing business demonstrated irreparable harm. Three Dog Bakery, LLC v. Crit, Inc., 2025 WL 1582467 (W.D. Mo. June 4, 2025).
Three Dog Bakery, LLC, sued its franchisee, Crit, Inc. and its owners, after Crit began operating a competing pet bakery using Three Dog Bakery’s recipes, products, trademarks, and confidential information in the same location as Crit’s Three Dog Bakery franchised business. Three Dog Bakery moved for a preliminary injunction to enjoin Crit from operating its competing business and restrain Crit from using Three Dog Bakery’s confidential information and marks.
The court granted Three Dog Bakery’s motion for a preliminary injunction, finding Three Dog Bakery demonstrated a threat of irreparable harm and would likely succeed on the merits of its claims. While Crit argued it removed signage and ceased using other confidential information in response to the lawsuit, the court found Three Dog Bakery’s harm was irreparable because Crit continued to operate a competing business out of the same location as its Three Dog Bakery franchised business all while using Three Dog Bakery’s confidential information, including its signage, confidential marks, recipes, and product designs. The court reasoned that Crit’s continued use and mishandling of Three Dog Bakery’s confidential information in its competing business posed a threat to Three Dog Bakery’s goodwill, reputation, and customer relationships. The court also determined Three Dog Bakery demonstrated it would likely succeed on the merits of its breach of the franchise agreement and misappropriation of trade secrets claims due to Defendants’ operation of a competing pet bakery business. The court enjoined Crit from operating a competing business and restrained Crit’s use of Three Dog Bakery’s confidential information and marks.
*Carson Cargill is a Summer Associate for Lathrop GPM who contributed to the writing of this post.
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