Contracts can be used to help earn money and collect money from students, especially in larger schools such as yours. It can even help keep some students coming to class, since they will have to pay whether they go or not. One problem with them though, is that most people don't know what they're looking at. This is when quite a few one sided contracts get issued. They see this nice teacher with all these stripes on his black belt who (in their minds) could kill everyone in the room in an instant. In my experience, most people who see the black belt, typically seem to trust you a great deal more. This would cause them to trust what the teacher says and not pay as much attention to the fine print. They may even agree if the teacher says: "Little [censored]/Jane should join the super flying spider monkey black belt club!! It's only an extra $300 a month, and they get a cool patch and an extra hour of intense training!! Most people don't know what's good or bad. What's a good price to pay? What about all of the other testing fees, etc..? God knows there are enough of those questions on these boards from newbies. It's a shame people don't do a little bit more research before making a decision.