Show Appreciation for your OGs! 

Interesting. I can't say much about BJJ on this subject, because I'm just a white belt. But I've got rank in other martial arts (Hapkido and Taekwondo). Using the timings for BJJ ranks as a comparison, I'm essentially a purple belt in HKD and a brown belt in TKD. I went to a HKD school, where the owner had the attitude of "I don't care what you know, you didn't learn it from me, so you have to start over and learn everything my way." I didn't go there. I went to the TKD school next, and the owner said, "Because of your rank, here's a 60% discount." I think it's interesting that he's come up with a similar system as you have. I do want to open my own TKD school in the future. And when I do, I'll definitely keep this in mind.

great idea and tradeoff