I do not know of any franchised schools within the UK, most dance schools are independent and you pay for the lessons as you take them, you merely make an appointment for a lesson and are charged when you take it.
I have not yet found anyone who charges a forfeiture fee or similar.
Neither, as far as I know (in my experience) do any schools ask you to sign a contract for so many lessons. They are generally happy to let their teaching abilities speak for themselves and rely upon your enjoying the learning experience enough to come back for more lessons.
I have only recently discovered the dance forums and am amazed at the apparently gullibility of the American dance pupils or is it the powerful advertising of the chain studios. Something that would probably gain little credit within the UK.
Sorry if this seems a little contentious, but the American scene is so different from that in the UK I find it hard to understand.
In my case I started lessons in order to be able to cope at social dances and enjoyed it so much that I continued (with a 2 year break due to a house move) for 23 years taking every possible IDTA medal test in Ballroom and Latin. Our school held very few social dances, and there are no pressures from them as to which dances we attend and we attend dances (purely for the pleasure of dancing) over a very wide area.
Altough my wife and I took every possible medal test, we rarely employ the more advance steps which can be difficult to perform accurately in a crowded ballroom, but find that the performance of really good basics will be enough to impress neary everone with just a few variations thrown in for good measure.
However, I digress, the question posed by "guestanon" suggst the answer that they should ask for the refund, if the school is not providing the service they have paid for then they are in breach of contract and are therefore liable to honour the contract.