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Around here, shops do not charge for shop/club rides. Our LBS just asks that all riders sign a waiver and has refreshments after the Sunday rides. If anyone buys the jersey it entitles them to 10%discount on all purchases and invites to events, sales and holiday party at the end of the year. The regular bikes clubs usually charge $20.00 or $25 for family a year. They are non-profit so the money goes for events & snacks at the club meetings.
If they're requiring provincial registration, it could be an insurance requirement. Here in Saskatchewan a person has to join the provincial association, whether they race or not, if they want to belong to a club and do club rides. Everyone who goes on a ride is then covered by the provincial insurance, whether it's a touring or racing club.
I think the licence referred to must be a racing licence, which is needed to compete in sanctioned events. This must be a fairly competitive club.
I live in the Portland, Oregon area where we have something like 80+ bike shops in the metro area. Not all of them offer group rides and of the ones who do none cost money.
shops offer group rides to attract customers. So unless the owner is really greedy, they do not charge you a fee. Even a seriously competitive shops don't charge you a fee for a group ride.
Now if the group ride is a training ride for their racing team/club, you will be paying a fee to join their club. And they normally would insist that you wear their racing gear (kit) Jersey and pants.
Sounds like you stumbled on a racing team training ride.
Although I've only done one group ride (sort of) with one of our LBSs neither one charge for group rides. We had a Greenway ride this past Sunday. It was more of a let's show the city that there really are a lot people who enjoy biking and show the town we like having the infrustructer for bikes. Had a local politician as part of the ride, Parks and Recs had 2 rest stops set up, and the police were there to stop traffic at 2 intersections that had to be crossed. It was pretty cool. We rode from the downtown shop to the main gate of the base and back.