Re: Where does the money go?
Over the years I was a member of several clubs in the UK and as far as I know, none of them were in it for the money. Fees were minimal, related to what was required to pay the rent. Instructors never got, or wanted, anything. It seemed natural enough.
In Japan and Korea (whre I am now) it is the opposite - most clubs are 'owned' by their respective teachers and operate to make money. It seems natural enough.