How do you handle unhappy clients?

Hi everyone,

I recently shot a free business shoot for a local business. I did this shoot because I wanted to build my portfolio and hopefully connect with more local businesses (I'm new to the area and it's a small town). I sent the client their photos, but they are unhappy with the results. They asked me to "remove the filter" and I explained that there isn't just a filter on the images.... However they still want the RAWs. For obvious reasons, I don't want my RAW images to be used by a business. I'm especially frustrated because the session was free, but I don't want to make a bad impression in a new area. How would you handle this?