Like I said prior one of the problems with a business model for things like martial arts etc is that its framed as "all business" when it comes to students paying their dues/fees etc.
But its an "art with traditions" when it comes to pretty much any other aspect of training.
They are "customers" when it comes to paying their dues on time, but they are "students" that should be respectful and attentive otherwise.
As a SCUBA instructor I come across somewhat of a similar quandary from time to time. The bottom line is that I am paid to train you, not to sign your card. You don't do the required skills, you don't get the card/belt.