Question: Even though it claims to be the sequel to the first SpongeBob movie, there's no Krusty Krab 2 and Plankton is somehow out of prison and continues trying to steal the Krabby Patty secret formula. Is this movie one of those "prequel" episodes made after the first movie came out?
MikeH
10th Feb 2015
Answer: The first movie is actually set after the series finale of the show. This is because Stephen Hillenburg wanted the show to end at the Season 3 finale and for the first movie to conclude the series, but Nickelodeon disapproved, since the show was making them heaps of money. So the second movie is probably in line with the episodes after Season 3 and before the series finale. So no, it is probably not a prequel. If we look at it from a logical point of view, Plankton could have been released or escaped, and the Krusty Krab 2 could've closed. We don't know how far apart the episodes and movies are set in terms of time. The series has lots of inconsistencies anyway.
MikeH