That's insane. My old old LBS didn't charge (I think there were clinics that they charged a small fee to help pay the instructor, but those were relatively rare) for group rides, my old LBS didn't charge, my current workplace doesn't charge (though they ask you to let them know that you're coming!).

Yes, the local club charges a membership fee, but it's like $25 a year or something, and extra for the jersey.