Croc's Family

After Croc had beaten Baron Dante in Croc 2, the Professor Gobbo took Croc on his airplane, taking him back to his family. The island that they lived on has been dubbed by fans, Crocodile Island. Croc's father wears a blue and white striped full body suit, carries a pipe, and has a mustache. His mother wears a pink and white striped body suit, wears a hat, and has eyelashes and lipstick. Croc's little brother basically is just a miniature version of Croc, minus the backpack.

The Eggs
On Crocodile Island, Croc's parents have three blue Crocodile eggs in a basket. At the end of the cutscene at the end of Croc 2, it shows Baron Dante stealing Croc's eggs. Croc finds this out, and goes on a quest through Baron Dante' Secret Levels, retrieving the three eggs from their various hiding spots.

Theories
It has been theorized by fans that Croc's family are just an elaborate trap created by Baron Dante- he obviously has the power to physically alter creatures, and even after he has been sent back "from whence he came", he still has enough influence over Crocodile Island to steal the eggs, and possibly do more. However, this is all just speculation.