> What even is a "franchise board"? I would assume something like a Gewerbeamt (entity to register businesses with)? Why do they have bank account data of you? How can they repossess property without a court order?

Franchise board is the California tax agency. Yes, they have bank account tied to a person since that's where they deposit any refunds (or extract any payments they see fit if you don't pay by other mechanism). They'll certainly take money without any court order, they are the tax man and do whatever they want.

The story is very plausible, that's how they operate.