Berry,
A written letter stating your intentions is requested for cancellation of your agreement with the said franchise studio. Under law (and in your agreement) the studio owner is required to refund your money for lessons unused minus a "service fee" which cannot be deemed unreasonable.
You have the right to spend your money anywhere you want and if the studio owner makes you uncomfortable about a refund, you can contact the franchise studio's organizational headquarters to file a complaint with them. The Organization is very much interested in any owners causing problems that can give a bad reputation and they will be be more than willing to help you. Good luck with your dancing!