There has been a story that has been in my family for years and I was wondering how I would go about figuring out if it's true. At some point, my family was either Spanish or French Royalty. They were forced to flee to Italy. I don't know really anything beyond that. Is it possible to find out who they were??

i know Ferrari only as an italian name of orgin.
but the nobility Ferrari had some connections to France. so read the history of this Ferrari-nobility-person - possible you mean that line. Genua/Genoa where are his parents were counts is in the northern part of Italy.
Philip Ferrari de La Renotière, Herzog von Gallièra in Genua
"Ferrary was the son of the Duke and Duchess of Gallièra. His father, Raffaele de Ferrari, was a wealthy businessman made Duke of Gallièra in Genoa by Pope Gregory XVI and Prince de Lucedio by Victor-Emmanuel II, King of Italy."
http://en.wikipedia.org/wiki/Philipp_von_Ferrary
http://en.wikipedia.org/wiki/Genoa
http://maps.google.at/maps?client=firefox-a&rls=org.mozi...

a famous Ferrari (without de - not of nobility)is Enzo Ferrari from northern-italian Modena in the region Emilia-Romagna. http://en.wikipedia.org/wiki/Enzo_Ferrari