I think the "you're not the producer or manager" point might not fit the bill here. This producer stuff is bullshit it the world of indie. It's arguable that if you're the only guy running the recording show, you can assert yourself into any role that band is aching for--and the best reason to do this is because your name become associated with the product.
If I were HangDawg, I wouldn't want shitty work coming out my studio, especially after the time and effort I took to build it and the creative control I hold over the projects allowed. I certainly wouldn't want the name of my studio on the CD. You might tell the band this: you can do what you want, but I can't stand behind the artistic value of the finished product. The production value is stellar, so you owe me money, but I'd prefer you not name my studio in conjunction with this mess. I don't know...just a thought.