Shoulda coulda woulda, you shouldn't have to ask any of this. I would walk into the embroidery store not with the intention of thrashing them, but with questions to see if they see what you see. You know like
"I picked this up the other day got it home and with closer inspection, something doesn't seem right, like these puckers here....i don't embroider at home, but I don't think it should look like this, what do you suggest?"
Ask to speak to the shop owner, i'm sure they wouldn't want this type of work representing the shop. If they don't offer a refund kindly ask them to reimburse you b,c you are going to have to replace the work.
I'm sure they will understand. It's business, not personal to them :)
I'd go with you if you were closer:)