It sounds very reasonable. Even if this was an established class that had been around for a while you would still have to make the $400 deposit to guarantee a spot. The only difference is the class is a start up but the school will refund the money if it doesn't make. Really shouldn't be an issue. Just remind your husband of the entrance fee for the Montessori school. I'm sure they had a non-refundable deposit. Definitely nothing fishy about the way the school is handling it.